Is prosper.com a scam?

Based on our automated analysis, prosper.com has a risk score of 0/10 and is currently classified as "Under Review". Our system checks WHOIS data, TLS certificates, page content, network links, and compares against known scam databases. See the full evidence report for details.

Is prosper.com safe to use?

Our detection system has assigned prosper.com a risk score of 0/10. We recommend reviewing all evidence before interacting with this site.

What is the risk score for prosper.com?

prosper.com has a risk score of 0 out of 10, where 10 is the highest risk. Scores of 7+ indicate high risk, 4-6 indicate suspicious activity, and 1-3 are under review.

Is Prosper Legit? Prosper Loans Review & Scam Check 2026

Prosper Marketplace is a legitimate, SEC-registered peer-to-peer lending platform and one of the most established online lenders in the United States. Founded in 2005 by Chris Larsen and John Witchel, Prosper was the first company to bring lending to the P2P marketplace and the first to receive SEC registration for consumer loan notes. The platform has facilitated over $23 billion in loans to more than 2 million customers and holds an A+ rating with the Better Business Bureau. Our assessment: legitimate and well-regulated, with standard lending fees that borrowers should review carefully.

Scam detection shield verified safe — Prosper is an SEC-registered lending platform with $23B+ in loans funded and a BBB A+ rating since 2006.

What Is Prosper?

Prosper Marketplace (prosper.com) is an online peer-to-peer lending platform headquartered in San Francisco, California. The company connects borrowers seeking personal loans ($2,000 to $50,000) with individual and institutional investors who fund those loans. Borrowers receive fixed-rate, fixed-term personal loans, while investors earn returns from the interest paid on those loans.

Prosper launched in February 2006 and pioneered the P2P lending model in the United States. In 2008, the SEC required Prosper to register its loan notes as securities, and the company completed SEC registration in July 2009. Since then, Prosper has operated continuously under SEC oversight, with loan notes publicly filed and investor returns tracked through regulatory disclosures.

The platform is reviewed and rated by major financial publications including NerdWallet, Bankrate, U.S. News, and Credible. Loan terms include APR ranges of 6.99% to 35.99%, with repayment periods of 2, 3, 4, or 5 years.

Trust Signals We Found

SEC-registered since 2009. Prosper's loan notes are registered securities with the Securities and Exchange Commission. This means the company is subject to SEC reporting requirements, regular audits, and investor disclosure obligations — a level of regulatory oversight that most online lenders do not have.

BBB A+ rating. The Better Business Bureau has assigned Prosper an A+ rating, with a license (number 6053227) issued by the California Department of Financial Protection and Innovation valid through December 2026.

$23 billion in loans funded. The volume of loans originated over nearly two decades of operation demonstrates an established track record of matching borrowers with capital.

Reviewed by major financial publications. NerdWallet, Bankrate, U.S. News, Credible, and Debt.org all publish detailed, up-to-date reviews of Prosper's loan products. This level of coverage from reputable financial media is a strong legitimacy signal.

Transparent rate and fee disclosure. Prosper publishes its APR range, origination fee range, and all other fees on its website before borrowers begin the application process.

Soft credit check for rate quotes. Checking your rate on Prosper does not affect your credit score, allowing borrowers to compare offers without risk.

Red Flags We Found

This is not a scam, but borrowers should understand the following:

Origination fees of 1% to 9.99%. Prosper deducts an origination fee from your loan proceeds before disbursement. On a $10,000 loan with a 5% origination fee, you would receive $9,500 but owe interest on the full $10,000. This is a significant cost that is easy to overlook when comparing loan offers. Not all lenders charge origination fees, so borrowers should factor this into their total cost comparison.

APR can reach 35.99%. While Prosper's lowest APR of 6.99% is competitive, the upper range of 35.99% is high. Borrowers with lower credit scores will receive offers at the higher end of this range, which can make the loan expensive relative to alternatives.

Late fees and insufficient funds fees. Prosper charges late fees of $15 or 5% of the monthly payment (whichever is greater) and $15 for insufficient funds. These are standard in the industry but add up quickly for borrowers who miss payments.

Minnesota consent order. In March 2024, Prosper entered into a consent order with the Minnesota Department of Commerce, which imposed a $30,000 civil penalty for alleged unlicensed debt collection activities. While this is a relatively small regulatory action, it indicates a compliance lapse.

Below average J.D. Power satisfaction. Prosper scored below the study average in J.D. Power's 2025 Consumer Lending Satisfaction Study, suggesting that while the platform is legitimate, the borrower experience may lag behind some competitors.

ℹAlways Compare Loan Offers

Prosper is a legitimate lender, but it is not always the cheapest option. Origination fees of up to 9.99% can significantly increase the total cost of borrowing. Before accepting a Prosper loan, compare offers from at least two or three other lenders. Use tools like NerdWallet, Bankrate, or Credible to compare APR, fees, and total repayment amounts side by side.

User Reports and Reviews

Trustpilot (strong reviews): Prosper has nearly 14,000 Trustpilot reviews with an "excellent" overall rating. Users praise easy applications, fast funding (often next business day), and helpful customer service. Debt consolidation is the most frequently cited use case.

Major financial publications: NerdWallet, Bankrate, U.S. News, and Credible all rate Prosper favorably, particularly for borrowers with fair credit (FICO 560+). The origination fee is consistently flagged as the primary downside.

BBB complaints: A moderate number of complaints relative to volume, mostly involving billing disputes and payoff timing. The company responds to most complaints.

J.D. Power (below average): The 2025 Consumer Lending Satisfaction Study ranked Prosper below the industry average in communication and problem resolution.

How Peer-to-Peer Lending Works

Understanding Prosper's business model helps evaluate whether it is right for you:

Borrower applies for a loan. You submit a loan application on prosper.com with your desired amount, purpose, and basic financial information. A soft credit check determines your estimated rate.
Prosper assigns a rating. Based on your credit profile, Prosper assigns a proprietary "Prosper Rating" (AA through HR) that determines your interest rate and loan terms.
Investors fund the loan. Individual and institutional investors choose to fund loans based on the risk-return profile. Your loan may be funded by many different investors.
Funds are disbursed. Once fully funded, loan proceeds (minus the origination fee) are deposited into your bank account, typically within one to three business days.
You make fixed monthly payments. Payments are fixed for the life of the loan (2 to 5 years). Payments cover principal and interest. There is no prepayment penalty — you can pay off your loan early without additional cost.

This model means Prosper acts as a marketplace connecting borrowers and investors, rather than lending its own capital. The SEC registration ensures transparency in how loan notes are offered to investors.

How to Verify a Lending Platform

Before borrowing from any online lender, verify the following:

Check SEC registration. Verify on the SEC EDGAR database that the lender is registered.
Check BBB and state licensing. Verify the lender's BBB profile and state licenses through the NMLS Consumer Access portal.
Compare total cost, not monthly payment. Factor in origination fees, late fees, and APR to calculate the true cost of borrowing.
Verify the website URL. The official Prosper website is prosper.com. Be cautious of lookalike domains or third-party sites claiming to process Prosper loans.

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What to Do If You Have a Concern

If you have an issue with a Prosper loan or suspect a phishing attempt using the Prosper name:

Contact Prosper directly. Reach customer service through the official prosper.com website. Do not use contact information from third-party emails or websites.
File a BBB complaint. The BBB profile allows you to submit formal complaints that Prosper is expected to respond to.
Report to the CFPB. The Consumer Financial Protection Bureau accepts complaints about personal loan lenders and tracks resolution patterns.
Report phishing. If you receive unsolicited emails or calls claiming to be from Prosper, report them to the FTC and do not click any links or provide personal information.
Review your loan terms. If you are disputing charges, review your original loan agreement carefully. Prosper's terms document is available through your account dashboard.