Prosper Marketplace Review: How to Invest in Prosper

Prosper marketplace is a peer-to-peer lending marketplace that offers multiple loans like personal loans, home improvement, and business loans. You can invest in personal loans and start earning a passive income. You can invest as little as $25 and earn an annual average income of 5.7%. You can diversify your portfolio by investing in a variety of loans. Prosper marketplace has an auto-invest function that can help you pre-set target and earn interest automatically.

Prosper Marketplace Review: Quick Facts

  • Prosper is a peer-to-peer lending marketplace that offers different kinds of loans like personal loans, business loans, and home improvement.
  • You can invest a minimum of $25 and start earning an average annual interest rate of 5.7%.
  • Prosper has investment features like an auto-invest tool that can help you save time selecting loans to invest in. It also has a mobile app available for Android and iOS users.

Who Can Invest in Prosper Marketplace?

To invest in Prosper Marketplace, you need to meet the following requirements:

  • Be a permanent resident of the United States
  • Be at least 18 years old
  • Have a social security number or Taxpayer Identification Number
  • Have a checking or a savings account

Go to Prosper Website

How Prosper Marketplace Works

Prosper is a peer-to-peer lending marketplace that offers loans to borrowers. Investors can lend money to borrowers through Prosper and start earning interest of 5.7%. The borrower makes a loan application and then Prosper Marketplace reviews the loan application by checking the borrower’s credit worthiness. If the lender meets the qualification, Prosper Marketplace connects him with an investor that lends him or her the cash.

Borrowers can apply for loans between $2,000 and $40,000. Then investors can invest small portions in different loans. Investors will be earning interest as the borrowers continue to make monthly payments. To qualify for a loan, the borrower needs to have a credit score of at least 640. They also need to provide bank statements.

How to Invest in Prosper Marketplace

To invest in Prosper marketplace, you need to follow these simple steps:

  1. Open an account. You need to sign up on the Prosper website to start investing. You need to provide your name, email address, and contact details.
  2. Fund your account. You then need to fund your Prosper account using a bank transfer, or credit card transfer.
  3. Select a personal loan to invest in. You need to select an individual loan to invest in. You can do so manually or using an auto-invest feature.
  4. Start earning. Once you have selected a loan to invest in, Prosper will deposit monthly payments to your Prosper account. You will be earning a 5.7% annual interest rate.

Investing

Prosper Marketplace Features

Prosper Marketplace has the following features that are accessible by investors:

Prosper Mobile App

Prosper has a mobile app available for iOS and Android users. You can download the app and use it to manage your account from a mobile device. You can adjust your investment portfolio, and transfer and allocate funds. You can also set up a portfolio, add cash to Prosper’s investment account, monitor and manage the portfolio through the app.
 

Prosper Auto Invest

Prosper has an auto-invest feature that automatically invests the available funds based on the pre-set parameters. To use the auto-invest feature on Prosper, you don’t need minimum account requirements nor will be charged any fees. You can set a parameter to select loans to invest in. when there is a loan request that meets the preset parameters, the auto-invest feature places orders for new listings.
 

Prosper Fees

You can expect the following fees when using Prosper:

  • Loan servicing fee: 1% per year
  • Collection agency fee for delayed payments: 25% of the amount collected

Prosper Supported Countries

To invest in Prosper, you must be a permanent resident of the United States. You must also have a social security number, Taxpayer Identification Number, and a checking or savings account.

Prosper Customer Support

You can contact Prosper customer support by phone: at 866-615-6319 or by email: at support@prosper.com. You can call them between 9 am and 5 pm on weekdays and between 9 am and 5:30 pm on weekends.

Is It Safe to Invest in Prosper Marketplace?

Prosper is a safe and secure investment platform. It is licensed and regulated in the United States. Also, the cash balance in your Prosper Investment account is FDIC insured by Wells Fargo Bank, N.A. however, it is worth noting that funds lost due to a borrower’s default or poor Note performance are not FDIC insured.

Prosper has 4.7 ratings on Trustpilot. Many people like the platform since it is easy and quick to invest in it. Also, many investors like the platform for its great user experience.

Pros and Cons of Prosper

Pros

  • Accepts credit scores of 640
  • Low origination fees of between 2.4% and 5%
  • Has auto-invest feature

Cons

  • Low returns of 5.7%
  • Unsecured loans
  • Not available in all states in the U.S

Prosper Alternatives

The following are alternatives to Prosper Marketplace:

Summary of Prosper Marketplace

Prosper marketplace is an investment platform where investors can earn an average annual interest rate of 5.7%. You need to be a permanent resident of the U.S to invest in it. Borrowers need to have a minimum credit score of 640 to qualify for a loan. You can save time by using the auto-invest feature to find loans to invest in.

Go to Prosper Website


Discover More

aescuvest crowdfunding
% Return on Investment
11
Auto Invest Option Available
No auto invest available
Type Of Investment
Business Loan Investments
nibblefinance
Name
% Return on Investment
17.5
Auto Invest Option Available
Auto invest available
Type Of Investment
Consumer Loan Investments
mintos usa
Name
% Return on Investment
11.1
Auto Invest Option Available
Auto invest available
Secondary Market:
Secondary market available
Type Of Investment
Consumer Loan Investments
Neo Finance Review: How to Invest in Neo Finance P2P Platform
% Return on Investment
12
Auto Invest Option Available
Auto invest available
Type Of Investment
Consumer Loan Investments
three men laughing while looking in the laptop inside room
% Return on Investment
12.6
Auto Invest Option Available
Auto invest available
Secondary Market:
Secondary market available
Type Of Investment
Business Loan Investments, Consumer Loan Investments
buyback guarantee twino
Name
% Return on Investment
14
Auto Invest Option Available
Auto invest available
Secondary Market:
Secondary market available
Type Of Investment
Business Loan Investments, Consumer Loan Investments, Real Estate Investments
monestro
% Return on Investment
10
Auto Invest Option Available
Auto invest available
Type Of Investment
Consumer Loan Investments
Bondster Review: How to Invest in Bondster
% Return on Investment
13
Auto Invest Option Available
Auto invest available
Secondary Market:
Secondary market available
Type Of Investment
Consumer Loan Investments
white concrete building
% Return on Investment
8.22
Auto Invest Option Available
No auto invest available
Type Of Investment
Real Estate Investments
Grupeer Review: How to Invest in Grupeer and Earn 13%
% Return on Investment
12
Auto Invest Option Available
Auto invest available
Secondary Market:
No Secondary market available
Type Of Investment
Business Loan Investments, Consumer Loan Investments, Real Estate Investments
Fast Invest Review: How to Invest in Fast Invest Profitably
% Return on Investment
13.98
Auto Invest Option Available
Auto invest available
Secondary Market:
Secondary market available
Type Of Investment
Consumer Loan Investments
Swaper Review: How to Invest in Swaper
Name
% Return on Investment
14
Auto Invest Option Available
Auto invest available
Secondary Market:
Secondary market available
Type Of Investment
Consumer Loan Investments
brown and black wooden house
% Return on Investment
14.8
Auto Invest Option Available
No auto invest available
Type Of Investment
Real Estate Investments
A group of friends at a coffee shop
% Return on Investment
11.7
Auto Invest Option Available
Auto invest available
Secondary Market:
Secondary market available
Type Of Investment
Consumer Loan Investments
Profitus Review: How to Invest in Profitus and Earn a 10% Annual Return
% Return on Investment
11
Auto Invest Option Available
No auto invest available
Type Of Investment
Real Estate Investments

Kasper is co-founder of FiFi Finance. He holds an MSc in mathematics. He has travelled and worked across the globe, for various companies and non-profits, including CouchSurfing and Geekcorps Mali, Mercedes-Benz and the Dutch tax authorities. Being a co-founder of B2B Pay, he is our expert on investments, virtual banks and fintech. Read more about us.