Lending Club vs Prosper :? Who wins
Best price: Lending Club and Prosper both offer very good rates, but Lending Club takes the lead on this one. Prosper offers potential borrowers APRs of 6.37% to 35.36%, while the lending rate of the club are between 6.78% to 29.99%. Although it is possible to get a lower rate with Prosper, most people will not qualify for the lowest rate possible. If you want the maximum rate as low as possible, you should look at Lending Club.
Another thing to keep in mind is the amount you want to borrow. Both services have a maximum of $ 35,000, but the minimum loan Club is $ 1,000, while Prosper s is $ 4,000.
Best for people without perfect credit: The better your credit, the better rates you can expect to receive. What if you do not have perfect credit? Then Lending Club is your best bet. Prosper requires a minimum credit score of 640 for approval. Lending Club still requires the average credit but has no hard and fast rules for what score you need. You might have a better chance with them if you are concerned about your credit history.
lower costs: Both services have closing costs of the total amount of your loan. This can range from 1% to 5%, depending on various factors. Your percent closing fee depends on the quality of your loan with Lending Club and Prosper with your pointing Prosper -. Both of which are decided according to your financial information
Regarding late fees, services are again fairly evenly matched. Both offer a grace period of 15 days and $ 15 fee for payments made later than that. However, Lending Club will charge 5% of your late payment or $ 15, whichever is greater. It is unlikely that most people face a late payment more than $ 15, so this is not something to fear.
Overall, both services are the same as regards the costs.
Ease of use: The steps required to qualify for a loan of two services are pretty much the same. Once you are approved for a loan, you create a list and wait for lenders to pay money. This process takes 7 to 14 days with the two services, after which you can either accept your loan. However, some might find the exclusive rating system Prosper confusing. He also seems to take a little longer with Prosper to get approval to build your list because of its verification process in three stages. Lending Club is a little simpler in this area.
The bottom line
Lending Club took the lead on Prosper in many of our comparisons. It is important to consider what your needs before applying for a loan of any kind. If you are looking for the lowest possible rate or need to borrow less than $ 4000, Lending Club would be a smarter choice. Ultimately, if you choose Lending Club vs Prosper, you will receive a service superb customer and excellent rates. The loan process peer-to-peer has advantages and disadvantages of its own, so you should also determine whether this type of loan is for you.
You can learn more about these services and personal loans in general by visiting our personal loan review page.