Lending Club vs Prosper for Borrowers: Four Big Differences

LendingClub vs Prosper for Borrowers

A common struggle borrowers face when applying for a peer to peer loan is choosing between the two major companies: Lending Club vs Prosper. From the outside, both look very similar. Both offer great low interest rates on loans up to $35,000. However, there are some key differences between the two that borrowers should be aware of.

While we have previously covered this comparison for investors (see: Lending Club vs Prosper for investors), today we will compare the two platforms for borrowers, showing four ways they are the same and four ways they are different.

Note: for a detailed look at getting a loan on each platform, you can read my Lending Club Loan Review or my Prosper Loan Review. I got a loan with each platform myself and explain the process in great detail.

4 Ways Lending Club & Prosper Are the Same for Borrowers

#1. Personal Loans up to $35,000

cashhhBoth Lending Club and Prosper offer the same basic service: the ability to apply for a loan between $2,000 and $35,000. Both the platforms ask you some basic questions about your age, employment, and income. Both check your credit score to see how well you have paid your bills. Finally, if approved, both open your application up for investment from lenders. When funded (and most loans do get funded), the money is transferred to your bank account. You then pay it back with interest over the next three years (or five years).

#2. Better Applications Can Get Bigger Loans at Lower Rates

Both Lending Club and Prosper have ways to improve your result when applying for a loan. Here are three ways to get a lower rate or access to a bigger loan:

  • Have a good credit score. Borrowers with a good credit score get lower interest rates and can apply for bigger loans. Similarly, many negative marks on your history can get your application declined, or only approved for a smaller loan than you might need. Keep updated on your credit report (free credit check here), making sure your history is free from errors.
  • Don’t shop around for a loan. Every time you apply for a loan, you get an inquiry, a somewhat negative mark on your credit. The greater the number of these marks, the higher your interest rate will be. This is because people with many recent inquiries have often been denied for loans elsewhere, and are more likely to skip out on repayment.
  • Don’t ask for too much money. The bigger the loan you take out, the more interest you pay on it. Also, if you ask for a 5-year loan (versus a 3-year), you will pay extra for that as well. Only apply for as much as you need, and try to pay it off in three years. This way you will be offered the lowest rate possible.

lending club and prosper application pages

#3. Borrowers Usually Pay a 5% Closing Fee

Both Lending Club and Prosper charge borrowers a fee to take out a loan (Lending Club calls this an origination fee; Prosper calls it a closing fee). This fee is different for different borrowers, but for most loans the fee is 5% of the loan amount. 80% of peer to peer loans pay this 5 percent closing fee, though the best 20% of borrowers pay a smaller fee: between 1-4% of the loan amount.

You should consider this fee when you apply for a loan, since 5% of your loan will be lost to to it. For example, say you needed $10,000 to pay off credit card debt. You should actually ask for $10,526 since $526 (5% of $10,526) could be taken from your loan by Lending Club or Prosper. The remainder ($10,000) would then be deposited in your bank account.

#4. Loans Are Funded by Real People

peopleOne of the amazing things about peer to peer loans is that they are not funded by banks. Instead, people all over the United States are funding these loans. In this way, Lending Club and Prosper are the same, helping organize this funding as it moves from their bank accounts to yours. When you pay your loan back over time, your payments then return to these lenders in whatever state they live.

4 Ways Lending Club & Prosper Are Different for Borrowers

#1. Prosper May Have Lower Interest Rates

This may change in the future, but for now it seems true. If you apply for a loan on both platforms, Prosper may offer you a lower interest rate than Lending Club. To demonstrate, I checked my own rate on both platforms today.

For a $4,950 loan, Lending Club offered me a rate of 9.71%:

Lending Club Borrower Application

For the same loan, Prosper offered me a rate of 8.69%:

Prosper Loan Approval Sept 2013

This difference of 1.02% is important to note: for the Lending Club loan, this would mean I pay $775 in interest over three years. For a Prosper loan, I would pay $691 in interest. This is a savings of $84 for the exact same loan, a difference that would be even more dramatic if the loan were larger. It is important to point out how my experience between the two platforms may be different than yours (see PeerLender; he gets consistently better rates @ Lending Club). Every application is different.

#2. Prosper Funds Loans Faster (4 Days vs 6 Days)

When I applied for a Prosper loan, I received my money in four business days. I applied on Monday and had money in my bank account on Thursday, just four days later. Lending Club, on the other hand, deposited cash in my account in six business days. Including the weekend, this made it eight days, twice as long as Prosper.

In summary, if you need money fast then Prosper then may be a better option.

#3. Lending Club Charges Lower Closing Fees

Like we mentioned earlier, both the platforms generally take 5% of the loan as a fee (called an origination fee on Lending Club and a closing fee on Prosper). However, the platforms offer slightly different versions of this fee, especially for premium borrowers. Lending Club offers their best quality A-grade borrowers a fee as low as 1% while Prosper’s is 1.95% (basically 2%). So if you have excellent credit, you might go with Lending Club. Even this tiny 1% difference can mean hundreds of dollars in savings, especially for big loans.

#4. Prosper Has More Eligible States for Borrowers

Prosper Borrower States

As mentioned in the recent post Which States are Open to Lending Club & Prosper?, Prosper has more states available to borrowers than Lending Club.  If you live in Idaho or Nebraska, you cannot get a loan through Lending Club, but you can get a loan through Prosper.

Verdict: Both Lending Club & Prosper Are Great

In my opinion, both Lending Club and Prosper are great places to get a peer to peer loan. That said, each platform offers different benefits to different borrowers.

  • Do you have great credit history? You might want to check out Lending Club. They can offer you a lower closing fee than Prosper.
  • Do you need money fast? You may prefer Prosper. They approve loans quicker than Lending Club.
  • Live in Idaho or Nebraska? Even though your state is closed to Lending Club, you can still get a loan through Prosper.

For a closer look at each platform, read my Review of Lending Club or Prosper Loan Review.

You can make this process a whole lot easier by simply taking two minutes to check your rate at both Lending Club and Prosper. After submitting some basic information like your name and yearly income, both Lending Club and Prosper will run a soft credit check that will not hurt your credit score. You then can see the rate that both companies offer, and pick the lower of the two.

Check your rate at Lending Club & Prosper.

Questions or comments? If you enjoyed this please Like or Tweet it below.

[image credits: "Money, Money, Money" by Daniel Borman
"Mother & Daughter" by Rolands Lakis CC-BY 2.0]

{ 84 comments… add one }

  • Karthi October 26, 2013, 6:12 PM

    Can I apply with both LendingClub and Prosper at the same time just to be safe and not waste time or will it affect either of the approvals and in the end, I get nothing?

    • Simon Cunningham November 3, 2013, 11:10 PM

      Hi Karthi,
      You can check your rate with both platforms and go with whatever rate is lowest.

  • Robert Dowling October 29, 2013, 10:35 AM

    Are there similar sites to Lending Club and Prosper that offer loan amounts greater than $35,000? Thank you.

  • Michelle November 3, 2013, 7:40 AM

    What is the turn around time for receiving your loan? I see on their site that things move quicker when you respond to their requests for more information. But my question is, say you submit a request on Monday, “normally” (with prompt responses from me) what’s the longest you’ve seen/heard it can take? Most personal bank loans are approved and the check cut in about a day or two. With Prosper, what’s the basic turn around time?

    • Simon Cunningham November 3, 2013, 11:16 PM

      Hi Michelle. Different borrowers experience different approval times, but it seems very possible to get the money in just 6-8 days.

  • Bobby Tria November 14, 2013, 5:31 AM

    I am in the market for getting a loan, possibly through Lending Club, if this happens, will it effect my credit score/rating?.

    • Simon Cunningham November 14, 2013, 10:04 AM

      Hi Bobby. Applying for a loan does not hurt your score since they use a ‘soft pull’. Accepting the loan will result in a ‘hard pull’ that will lower your score slightly for a few months.
      Hope that helps,

  • John November 16, 2013, 5:55 PM

    Soft pull prosper said based on my score they would only do 25,000. Lending club gave a quote for 35,000. Will you know in advance if they can fund it (the whole amount) or will they assume you will take a lesser amount? I really don’t want a loan for a lesser amount.

    • Simon Cunningham November 16, 2013, 6:05 PM

      If they make you an offer and you are approved, you are almost guaranteed to get funded for the full amount.

  • Deshaun Lathon November 18, 2013, 9:36 AM

    To initially check is simply a “soft pull” and once the loan is accepted then it will be a ” hard pull” resulting in your credit score dropping slightly for a few months right ? What is the average time before you credit score stabilizes to the original score?

    I also read that the loan is considered an installment loan which means that once paid it will in turn boost your credit score right ? ( above what is was originally )

    • Deshaun Lathon November 18, 2013, 9:38 AM

      Thanks in advance btw ! Your information has been VERY insightful !

    • Simon Cunningham November 18, 2013, 9:51 AM

      Hi Deshaun. Everything you wrote seems true to me :) Your score will recover from the hard pull within six months to a year, though a record of the hard pull will remain on your report for two years.

      • New Jersey Guy January 5, 2014, 8:27 AM

        Simon….If the borrower is using the money to pay off debt, they could experience a sharp increase in their credit score in as little as 60-days. This will hold especially true if the money is being used toward credit card debt which is a major factor in determining a credit score.

  • Kevin December 5, 2013, 10:03 AM

    Great Article Simon. Im self employed (5) years with a FICO average of 660. (Experian is 673). Has anyone applied and been approved that is self employed by Prosper/Lending Tree? Looking to consolidate and do a few biz upgrades and am curious as to what they will require paperwork wise. Thx in advance.

    • Simon Cunningham December 5, 2013, 4:00 PM

      Hi Kevin. I did exactly this myself, though only for Lending Club (not Tree). They had me fax in the first few pages of last year’s tax return. It was quick and easy.

      • Kevin December 5, 2013, 5:20 PM

        Thanks again Simon. I was approved by Lending Club for up to $14,000. Great news! But before I accept I was wondering if my actual AGI (Adjusted Gross Income) will be a factor as it is very small after business deductions. My gross is over $90K before schedule C deductions. Any advice? Thanks in advance.

        • Simon Cunningham December 5, 2013, 9:21 PM

          I’m not the expert on this, but as long as your initial information was accurate then your subsequent submitted documents will only back this up.

  • Celeste Gordon December 8, 2013, 12:09 PM

    I really want to use one of these companies but I’m scared to start the process. I have been trying to pay down our credit card debt but can’t seem to make the headway I want. This looks like a great solution. I guess I’m looking for advice – have others been happy with these companies? Help!

    • Kevin December 8, 2013, 12:46 PM

      Hi Celeste. I was really apprehensive as well but went ahead and applied with Lending Club on Friday. My loan request was funded shortly after applying. I am just waiting to see if they have accepted all the requested documents I sent them. Simon has screenshots of the exact process here so that was a big help in knowing what to expect. Best of luck!

      • Celeste Gordon December 8, 2013, 4:42 PM

        Thank you for your response. I am going to get my ducks in a row and get started. I absolutely detest my credit cards. There is a light at the end of the proverbial tunnel. Happy Holidays!

  • Brenda December 15, 2013, 10:10 AM

    Hi Simon,
    Thank you for your “plain English” analysis.
    My question is… Can my husband and I apply for one of these loans jointly or would we be better served splitting the loan amount requested and apply separately?

    • Simon Cunningham December 15, 2013, 10:12 AM

      Hi Brenda, these are personal loans, so there are no joint applications. I suggest you use the person with the best credit history, since that should result in the lowest rate.

      • Phillip L. January 8, 2014, 9:32 AM

        That puts me in a bit of a quandry. The credit cards are in my name, and I have the better credit score, but my wife make more than ten times what I make. I suppose we can both apply and compare quotes. Might be an interesting experiment.

  • Nicole December 22, 2013, 1:35 AM

    Hey! Thanks for the awesome review! So I’m pretty much flat broke and I travel a lot, and usually have random season jobs, some under the table. On paper I am below the poverty line for sure! Oddly enough, I have a good credit score of 711, having a few credit cards, and I currently am about $5,000 in debt to, but am paying off etc. Anyway, my friend and I have an idea for a new business and I was hoping to get a loan (for $5,000 to $10,000) to get the business started, hoping of a quick return by the end of 2014. Basically my question is, what do you think my odds are of getting accepted for a loan if I can’t show on paper an annual income? Do they ask for papers to prove your income, etc? What do you need to show them?

    Thanks! I really appreciate it!

    • Simon Cunningham December 31, 2013, 6:39 PM

      Hi Nicole. I can’t say the odds, but you could always just check your rate and see what they offer you. Checking your rate is with a soft inquiry, so it shouldn’t hurt your credit score at all.

      • Crystal February 21, 2014, 11:11 PM

        Hi. I have a question, since you said if you check your rate at Lending Club that it doesn’t affect your credit score. What if you tried checking your rate like 5 times? Would it still be considered as soft inquiry? Because I checked my rate on different amounts (like $5000, $10000, and so on). Would it show in my credit report as 5 inquiries, or not?

        • Simon Cunningham March 5, 2014, 1:49 PM

          Checking your score is a soft pull and will not show up on your credit history, no matter many times you check it. That said, you probably will get the same rate either way so there’s not much use trying to check it multiple times.

  • Mark December 22, 2013, 6:17 PM

    Great article. I recently took out a loan with Lending Club to pay down credit card debt. The amount they approved at the time allowed me to pay down off about 80% of the debt, and lower my monthly payments. As a result my FICO score has improved greatly (now about 750). I’d like to get the rest of my old credit bills paid off, and Prosper is telling me I would be approved. Is there any reason not to do a second loan with Prosper, as this will get all of my old things paid, result in lower monthly payments, and get me completely out of debt faster.

    • Simon Cunningham December 31, 2013, 6:37 PM

      I’ve done loans with both Lending Club & Prosper on the same day, and in my experience everything went smoothly (though your experience may be different).

  • Klcreech December 30, 2013, 5:33 PM

    I have been asked to send copy of my SS card. I find this a little odd. Never needed ever for a loan, so I’m leery of scanning it. Is this common for all borrowers via And they’re also asking for “bank ownership”?

    • Simon Cunningham December 31, 2013, 6:35 PM

      Hi Klcreech,
      Prosper’s requirements are different for everybody, so I’m not surprised by these requests. For Prosper (or anybody who gives out loans) to feel you are trustworthy, they may you to verify yourself with your social security number. This is quite standard, though I’m not sure what “bank ownership” means. Do you mean they are asking for proof that you have a bank account?

      • Klcreech December 31, 2013, 10:55 PM

        Thx for the feedback. I just need to trust the process. And yes, bank ownership is verifying you’d bank account.

  • Amy Davis January 4, 2014, 9:55 AM

    Hi. I just tried to check my rate on Prosper. I have a FICO score of 715 but Prosper says I’m too low for them. I’m assuming they want a minimum credit score of 720 since that’s excellent credit. Now I feel defeated and feel like Lending Club is the same thing. Any idea, because it doesn’t say on either site. Thanks.

    • Simon Cunningham January 4, 2014, 10:33 AM

      Hi Amy. The minimum credit score on both sites is 640, so there must be some other factor in your credit history that is making the platforms deny your application. You may want to check your credit history for any negative marks and see if you can correct them before applying again.

  • CindyM January 9, 2014, 9:16 AM

    If I am a caregiver for a family member (re: self employed, no paycheck, no taxes taken out), how do I prove my income?

    • Simon Cunningham January 9, 2014, 9:20 AM

      As long as you paid taxes on your income, they may ask you to submit the cover pages of your 2012 return, pages which contain the figure of your yearly salary. Of course, this is different for everyone. Cheers, Simon

  • ken January 21, 2014, 8:02 AM

    I got a pre approved letter from Prosper in the mail and applied online, filled everything out and said my loan was ready for funding. And got an email their sending post card for address verification?…i guess im not completely approved yet?…I have not given my bank info, acc# and routing #yet as im leery that they have this info when my loan is not approved yet?

    • Simon Cunningham January 21, 2014, 5:21 PM

      Hi Ken,
      You can feel safe about submitting your bank info to Prosper. They are a good loan company with solid site security. They simply need your bank info and an address verification postcard in order to prove your identity (somebody should be calling you on the phone as well).

  • Arlene January 21, 2014, 1:01 PM

    I recently received offers from Prosper and Lending Club, actually within a few days of each other. The offer stated that I am pre-approved; however, I am reluctant to apply to either because I do no want to damage my already improving credit. My credit score with TransUnion is 698, with 0 late payments in my entire credit history. The only problem is that I filed Chapter 7 in May, 2011. Do I even have a chance at securing a loan?

    • Simon Cunningham January 21, 2014, 5:22 PM

      Hi Arlene,
      I’m not the authority on who gets approval from them, but what I can say is that they have approved people with credit scores as low as 640, as well as people with past bankruptcies.
      Hope this helps,

  • Nothingface5384 February 5, 2014, 8:37 AM

    I’ve had 2 loans through Lending Club (2nd one ends in a few months). In a few months I may try getting one from Prosper since I’ve been slowly raising my credit score of 600ish to 715. It has been around 715 for two years now.

    What’s the minimum to invest to make it worth putting your money up for loan and get a return percentage?

  • Jennifer February 12, 2014, 3:34 PM

    Firstly, thanks for this article. I was really doubtful of Lending Club and Prosper being legit companies. Me and my husband need about $15k to do some debt consolidation. I lost my job a few years ago and we are finally at a point where we are paying things off and have already paid off close to $10k in the last couple of years. I am a stay at home mom and he is employed and made $92k this year with over-time. I guess my question is, can I qualify if I use our tax returns as proof of income? I have the better credit score, mine is 695 and his is 655. The only thing holding my score down is our debt, where he has some old delinquent things on his score. We also each have 6 hard inquiries because we’ve been trying to consolidate this debt for a while. He has applied to Prosper and the max they would give him is $10k. And the interest rate is crazy high!

    • Simon Cunningham February 12, 2014, 3:42 PM

      Hi Jennifer,
      When I applied for a peer to peer loan, the tax returns were one way they verified my income, so they may do the same for you. Nice job paying off your debt. I hope a p2p consolidation loan adds some much needed breathing room to your life.

  • Adam February 21, 2014, 7:51 PM

    I am looking for an unsecured loan for home improvement. I really don’t have a lot of equity in my house( due to home values dropping). I have some questions.
    1. If I apply at both companies can I reject the one that has the higher interest rate or am I automatically locked in the accept?
    2. Will applying to both companies affect my credit scores drastically?
    3. Is there a place on the application to include my wife’s salary? She makes a lot more money than I do, but would to include both of our salaries.

    • Simon Cunningham March 5, 2014, 1:52 PM

      1. Yes you can check your rate at both and go with the lower rate – there’s no commitment for just checking your rate.
      2. Checking your rate does not affect/hurt your score. Getting a loan from both companies would affect it, but it would be positive/negative depending on your situation.
      3. There are no joint applications.

      Hope that helps,

  • John February 27, 2014, 1:59 PM

    Hey Simon. Thank you for the good and easy read.

    I just took a loan out from LC for $7000 and they gave me the rate at 9.98%. It was approved in one day. However, they didn’t ask for any paper verification. They just had me do a phone verification and email verification.

    I will follow up and confirm how long it takes to get the fund to my account.

    Bye bye high interest cc.


  • Carl March 4, 2014, 9:26 AM

    I was in business for myself for a number of years, and thus my credit history is only OK (I’m since ‘retired’ and on SS, but I do have some additional income as well). We usually put our purchases in my wife’s name since she has better credit but only supplies about half of the total family income. My question is, can we apply as a couple or should we only use her credit. We want to pay off credit cards as well as provide for a kitchen remodel, so we probably are looking for a max loan.

  • Nichole March 7, 2014, 2:27 PM

    I am interested in borrowing money from either Lending Club or Prosper. However, I am concerned about information (my SSI, banking account # and W2) I will provide to these companies. Who will get my information and how is it protected? Since the companies are based on peer to peer investment, how much of my financial information are they given?

    • Simon Cunningham March 8, 2014, 12:59 PM

      Hi Nichole. No need to be worried about Lending Club or Prosper’s site security. Both their sites promote the fact that their servers and databases are secure against unauthorized intrusion.

  • Michael March 10, 2014, 2:10 PM

    Hi everybody, I am almost sure I am going to be approved for a loan of three years term with Prosper, but my question is, can I pay back the money I received before the end of the term?, let’s say maybe in a year and half or maybe two years to avoid paying more interest? Please help me understand a little bit better about this, thanks

  • sg March 23, 2014, 9:58 AM

    Did Lending Club lower their minimum FICO score requirement to 640 recently? If so, is this to better compete with Prosper who has been advertising a lot lately?

    • Simon Cunningham March 24, 2014, 12:38 PM

      They did indeed lower their minimum FICO. Why they did this is anyone’s guess. My opinion: both in response to competition from Prosper and opportunity to issue more loans to people. A whole market exists for 640-660 borrowers, and they are keen to figure out how to enter that space as well.

  • Char March 31, 2014, 10:35 PM

    My credit is score is in the low 600 with a high debt ratio, but I pay all my bills on time. I do have some old medical bills with neg and in collection. Do think either company give me a loan. Thank you so much for all the advice.

    • Simon Cunningham March 31, 2014, 10:45 PM

      Both companies requires a minimum score of 640. If you have this, there’s a chance you could get approved.

  • Allison April 1, 2014, 2:05 AM

    Hi, Simon! Thanks to all the information you have provided I feel a lot more comfortable with peer-to-peer loans. I’m going to apply for the lending club loan but because the future is unforeseen, I want to know what happens if I cannot repay a loan. I plan in using this for debt consolidation/refinancing, and I pay a little more than the minimum on my four credit cards now, but I’d like to get them all paid off and just paying one bill, with a lower interest rate. What are the penalties if, for example, I lose my job and am unable to make payments for a few months? Also, you mention in someone else’s comment that Prosper allows early repayment, but I wanted to verify the lending club does as well. Thank you so much!

    • Simon Cunningham April 1, 2014, 5:17 PM

      Hi Allison. Both Lending Club and Prosper allow pre-payment. With Lending Club, you simply have to call them and set it up over the phone.

      As for what happens if you cannot repay, your loan will go into collections. You’ll have a lot of calls from the agency trying to get payments. Eventually you’ll have a really nasty credit score, which will make it hard to get more loans in the future. I would not get a loan if you were doubtful you could pay it back, but also know that it’s not the end of the world if this happens. These loans are unsecured, meaning your house or car is not collateral in case you stop your payments.


  • Mary April 7, 2014, 5:03 PM

    Is it true that Prosper will not approve a loan if your credit score is lower than 640?

  • Sage April 9, 2014, 7:54 AM


    I have heard that consolidating your credit cards can negatively affect your credit score- is that true?

    • Simon Cunningham April 10, 2014, 3:50 PM

      Hi Sage. Everybody’s situation is different, so what I say next is really just my opinion: what many people appreciate is consolidating at a lower rate, which allows them to save money and pay off their debt at a more reasonable calendar. And when all debt is paid off, credits scores usually go up.

  • Gigi April 9, 2014, 11:59 AM

    I have just gotten an approval of a loan with Prosper and am sending them the required paper work. Does approval and 100% funding mean that they will not come back with a higher interest rate than they offered in the beginning once the documentation is submitted?

    • Simon Cunningham April 10, 2014, 3:51 PM

      Correct. Your rate will never go up once it is offered and you accept it.

  • Mosa April 13, 2014, 5:32 PM

    Would it be better to apply for a large loan amount from either LC or Prosper, or divide the amount into two smaller loans? One from LC and the other from Prosper.

    • Simon Cunningham April 14, 2014, 12:57 PM

      Hi Mosa,
      The answer to that question is highly dependent upon your isolated situation. I would recommend you consult a financial professional. Personally, I would take out my own single loan because the payments would be in one place, but your needs may be different.

  • Robin Sizemore April 14, 2014, 12:15 PM

    Not to be nitpicky, but you state, “You should actually ask for $10,500 since $500 (5% of $10,000) could be taken from your loan by Lending Club or Prosper. The remainder ($10,000) would then be deposited in your bank account.”

    The fee would be 5% of $10,500 ($525), and the borrower would still come up $25 short of the $10,000. If the exact amount is extremely important, one should borrow 105.26% (rounded) of the desired amount, or $10,526 in your example. Then they’d lose 5% of $10,526 to the closing/origination fee ($526), and still have the $10,000 loan.

    Other than that, this was a wonderfully helpful article. Thanks!

  • sara April 15, 2014, 4:32 PM

    Is it safe to put bank account and routing number when Applying for a loan on prospers website

    • Simon Cunningham April 15, 2014, 6:50 PM

      Yes, in so far as things on their end. Prosper has state-of-the-art security on their website.

  • David G April 18, 2014, 4:04 PM

    I was just declined outright by Prosper for a debt consolidation; I had pulled current scores and reports from all three bureaus at and they ranged from 704-731, with zero derogatories, and never a late payment. I make $113K per year. My credit card utilization is higher than it should be, hence the reason for looking at a debt consolidation loan at a reasonable rate. Only one inquiry, and one new account opened in the last year. Have owned my current home for over 10 years, and 14 years in the same job. I’m completely puzzled.

    • David G April 18, 2014, 4:23 PM

      In the denial message, they show the same score I have for Experian, 710. I scored lower compared to other members because of my revolving balance (which I expected, but it’s not abnormally high), and get this…too few fully paid Prosper loans. I’d never even heard of Prosper before today…so that last one is actually quite funny.

      • Simon Cunningham April 19, 2014, 7:57 AM

        Sounds like they crunched your credit’s numbers and got a score they didn’t like. Sorry David.

        • David G April 22, 2014, 11:26 AM

          Meanwhile, LC approved, and it fully funded in less than 48 hours…final approval confirmation this morning. Reasonable rate, enough to where I’ll still be saving a decent amount of $ by paying off a few credit cards.

  • Chloe April 20, 2014, 6:56 AM

    You mention that only the inquiry remains on your credit- do they not report the loan on your credit as well? Sorry if I missed this in the article or comments somewhere.

    • Simon Cunningham April 21, 2014, 7:59 AM

      Checking your score is a ‘soft’ credit pull that does not affect your credit score. Actually getting a loan results in a ‘hard’ pull that is reported to all the agencies.

  • Edward April 22, 2014, 10:35 AM

    Great article. I have a good credit score (711) but high debt-income ratio. Are they checking for my debt-income ratio also? Thanks!

  • Abe April 23, 2014, 9:01 AM

    Do you recommend borrowing money from these types of websites to start a business?

    • Simon Cunningham April 24, 2014, 9:31 AM

      The answer to your question about using these loans to start businesses varies greatly from person to person. Consult a financial professional.

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