Lending Club vs Prosper Loans: Well, if you are looking out for a great and trusted lending company from where you get the personal loans then Lending Club and Prosper loans are one of the best choices for you. But which was is the best? This is what we are going to talk about today. So, read the further article and find out which one is the best.
What is Lending Club?
LendingClub is a US peer-to-peer lending company which has been headquartered in San Francisco, California. It was the first peer-to-peer lender in order to register its offerings as securities with the Securities and Exchange Commission (SEC), along with offering loan trading on a secondary market.
LendingClub let its borrowers create unsecured personal loans in the middle of $1,000 and $40,000. Investors, on the other hand, make money from interest. The question arises how LendingClub makes money, the answer is by charging borrowers an origination fee and investors a service fee.
On the other hand, LendingClub is considered to be the largest peer-to-peer lending platform around the world. The company claims that $15.98 billion in loans had been initiated through its platform up to 31st December 2015.
The standard loan period of LendingClub is of about three years. The Investors can search as well as browse the loan listings on LendingClub website along with selected loans that they want to invest on the basis of the information supplied about the borrower, amount of loan, loan grade, and loan purpose.
What is Prosper Loans?
Prosper Marketplace, Inc. is a great platform and a good marketplace lending company that offers unsecured personal loans. One must take note that Prosper Loans, however, is not a bank and let you loans of up to $40,000 for any purpose such as Debt consolidation, home renovations, major life events, or any other large purchases. Also, with this platform individuals can either invest in personal loans or else request to borrow money.
It is a San Francisco, California-based company in the peer-to-peer lending industry and one of its subsidiaries is Prosper Funding LLC which operates on Prosper.com. Prosper has also provided over $14 billion in loans to more than 870,000 borrowers, so in other words, you can say that it is an established leader in the peer-to-peer lending industry.
Lending Club vs Prosper Loans Benefits
Prosper Loans Benefits
Talking about Prosper Loans Benefits at first, Prosper lets the loans to borrowers who may not qualify with traditional banks.
Here you can use the funds for almost anything such as home renovation, buying a new car, paying for school fee, making big purchases, or else paying for your wedding.
Auction environment also let a possibility for better interest rates
There are also no early payoff penalties.
The best part is that even if you don’t have a perfect credit score, you can still qualify for the loan as the minimum credit score of Prosper is 640, which in other terms considered being “reasonable” credit.
Lending Club Benefits
Now talking about Lending Club benefits, the first pros you will find here is that you can stretch the loan to repayment terms of three years and five years.
There will be no hard credit inquiry that will be required to check the rates, which comes in handy while comparing loan products. It is going to allow you to suitably shop around deprived of hurting your credit score.
The LendingClub credit score, on the other hand, has also a minimum acceptance of 600. However, the interest rate may possibly not be ideal with that score, but it might be also a good deal for borrowers with so-so credit who regularly have to settle for subprime offers.
Lending Club vs Prosper Loans Comparison
Talking about the Loan amounts of Lending Club is $1,000 to $40,000, while Prosper Loans have $2,000 to $40,000 Loan amounts.
Talking about the APR range of Lending Club is 6.95% – 35.89%, while Prosper Loans have 6.95% – 35.99% APR range.
Talking about the Origination fee of Lending Club is 1% to 6%, while Prosper Loans have 2.4% to 5% Origination fee.
Talking about the Loan durations of Lending Club and Prosper Loans are both same and that is Three or five years.
- Talking about the Minimum qualifications of Lending Club is 1% to 6%,
- A credit score of 600
- Credit history of three years
- A debt-to-income ratio of 40%
- Prosper Loans Minimum qualifications comprise of:
- A credit score of 640
- A debt-to-income ratio of 50%
Well, which one is best is quite hard to answer as it will depend on your preference. If you are a Debt consolidation or Co-borrowers then the best option for you will be Lending Club. But, on the other hand, if you are a Borrower with high debt and looking for Debt consolidation at the same thime then you must go for Prosper Loans.