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In 2025, with borrowing options more accessible than ever, it’s crucial to compare your choices carefully—because the right loan can make a real difference in your financial journey. Whether you’re consolidating debt, covering a big expense, or simply building your credit, understanding your options helps you borrow smarter and with confidence.
Two names that often top the list are Upstart and Prosper. Each brings something unique to the table: Upstart uses advanced artificial intelligence to give more people, especially those with limited credit history a fair shot at approval and quick funding. Prosper, on the other hand, connects borrowers directly with individual investors through a peer-to-peer platform, offering a community-driven approach and flexibility for those with established credit.
Upstart vs Prosper Personal Loan
PROSPER
SoFi
- Upstart: Perfect for applicants with limited or unconventional credit backgrounds who need quick access to funds.
- Prosper: A great match for borrowers with established credit who want the flexibility to apply with a co-borrower.
Upstart Personal Loan Overview
Upstart stands out for its innovative, AI-driven approach to personal loans, making borrowing more accessible for people with limited or unconventional credit histories. Unlike traditional lenders, Upstart evaluates a wide range of factors including education, employment, and income alongside your credit score, which means even applicants with scores as low as 300 or no score at all may qualify. The application is fast and fully online, with most borrowers receiving instant decisions and funding as soon as the next business day. Upstart also allows you to check your rate with a soft credit pull, so you can explore your options without impacting your score.
Unique Features of Upstart Personal Loan
- AI-powered underwriting considers education, job history, and income not just credit score.
- Accepts applicants with little or no credit history; minimum score as low as 300.
- Fast funding, often by the next business day.
- No prepayment penalties and flexible use of funds.
- Option for secured loans using a vehicle as collateral.
Eligibility & Application Process
- U.S. citizen or permanent resident, age 18+ (19 in some states).
- Minimum annual income of $12,000 from employment, self-employment, or benefits.
- No bankruptcies in the past 12 months, no current delinquencies, and fewer than six recent hard inquiries.
- Apply online, check your rate with a soft pull, and receive an instant decision.
Customer Experience
- Known for high approval rates, especially for nontraditional borrowers.
- Transparent process with clear communication and fast funding.
- Accepts low or no credit scores
- AI-driven, holistic approval process
- Instant decisions and next-day funding
- No prepayment penalties
- Soft credit check for prequalification
- Origination fees can reach up to 12%
- No co-borrower option
- Limited to 3- or 5-year repayment terms
- Not available in all states
Prosper Personal Loan Overview
Prosper is a pioneer in peer-to-peer lending, matching borrowers with individual investors for personal loans. The platform is best suited for applicants with established credit histories, offering fixed-rate loans and the flexibility to add a co-borrower, ideal for those seeking to qualify for better rates or higher amounts. Prosper’s application is fully online, with a soft credit check for prequalification and funding typically within three to five business days. The platform is praised for its transparent terms, strong customer support, and community-driven lending model.
Unique Features of Prosper Personal Loan
- True peer-to-peer lending platform, connecting borrowers directly with investors.
- Co-borrower option to improve approval odds or rates.
- Fixed-rate loans with clear repayment schedules.
- No prepayment penalties.
Eligibility & Application Process
- Minimum credit score of 640.
- Stable income and reasonable debt-to-income ratio.
- U.S. citizen or permanent resident, age 18+.
- Online application with soft pull for prequalification.
- Funding typically within 3–5 business days.
Customer Experience
- High marks for customer service and transparency.
- Flexible for borrowers who want to add a co-borrower or consolidate debt.
- Co-borrower option available
- Transparent, fixed-rate loans
- No prepayment penalties
- Strong customer support
- Funding can take 3–5 business days
- Origination fees up to 5%
- Higher minimum credit score required
- Not ideal for those with limited or no credit history
Detailed Comparison: Upstart vs. Prosper
Loan Amounts & Uses :
Upstart provides loan amounts ranging from $1,000 to $50,000, making it more accessible for borrowers with smaller financial needs, while Prosper’s loans start at $2,000 and also cap at $50,000. Both lenders support a wide variety of loan purposes, but Upstart’s lower minimum allows borrowers to access funds for smaller expenses that Prosper would not cover. This difference can be crucial for applicants seeking modest loans, as Prosper’s higher minimum may exclude those with limited borrowing needs.
Interest Rates & Fees :
Upstart offers a lower starting APR than Prosper, with rates ranging from 6.60% to 35.99%, making it potentially more attractive for highly qualified borrowers seeking the lowest possible interest rates. However, Upstart’s origination fees can be higher, ranging from 0% up to 12%, compared to Prosper’s origination fee range of 1% to 9.99%.
Both lenders charge the same late fee—$15 or 5% of the unpaid amount, whichever is greater—and neither imposes a prepayment penalty, allowing borrowers to pay off their loans early without extra cost.
Upstart may be more appealing for those who qualify for its lowest rates, but Prosper could be a better choice for borrowers aiming to minimize upfront fees, especially if they don’t qualify for Upstart’s best terms.
Repayment Terms :
Prosper offers more term choices, allowing for greater flexibility in repayment. Prosper allows borrowers to choose from four different repayment terms (24, 36, 48, or 60 months) giving applicants more options to customize their loan to their financial situation. Upstart only provides fixed repayment terms of either 36 or 60 months, limiting choices for those who may prefer a shorter or more customized repayment period. This broader range of term lengths makes Prosper a better fit for borrowers seeking more control over their monthly payments and overall loan duration.
Funding Speed :
Upstart is recognized for its rapid funding process, often providing borrowers with funds as soon as one business day after loan approval. Prosper also offers quick access to funds, typically within one to three business days, and in some cases, as soon as the next day. However, Prosper’s funding speed can be influenced by additional verification steps and the time it takes for investor funding, which may occasionally result in a slightly longer wait compared to Upstart. Overall, while both lenders are fast, Upstart generally has the edge for borrowers needing the quickest possible access to loan funds.
Credit Requirements :
Upstart stands out for its accessibility to borrowers with limited or nontraditional credit histories, as it accepts applicants with credit scores as low as 300 or even no credit score at all, by also considering factors like income, employment, and education in its approval process. This makes Upstart a strong option for those who may not have an extensive credit record but can demonstrate financial stability or strong earning potential.
In contrast, Prosper generally requires a minimum credit score between 600 and 640, along with a stable income and a reasonable debt-to-income ratio, making it better suited for borrowers with established credit profiles and a proven track record of financial responsibility.
As a result, Upstart is more inclusive for those with weaker or unconventional credit backgrounds, while Prosper targets applicants who already have solid credit histories.
Co-Borrower Options :
Prosper distinguishes itself by allowing co-borrowers on personal loan applications, which can help applicants qualify more easily or secure better rates by combining credit profiles. In contrast, Upstart does not permit co-borrowers on its personal loans, limiting applications to individual borrowers only.
This makes Prosper a more attractive choice for those who want to apply jointly, especially if one applicant’s credit or income profile could strengthen the overall application.
Upstart vs Prosper Customer Reviews: Which is better?
Upstart Reviews:
Upstart consistently receives excellent customer feedback, with a Trustpilot rating of 4.9 out of 5. Borrowers frequently highlight the platform’s transparent process, fast funding, and straightforward application experience. Many users appreciate Upstart’s clear communication and lack of hidden fees, making it a top choice for those seeking a hassle-free personal loan experience.
Prosper Reviews:
Prosper also enjoys strong customer ratings, averaging around 4.5 out of 5 across Trustpilot and the Better Business Bureau (BBB). Customers value Prosper’s peer-to-peer lending model and responsive support team. However, some borrowers have noted occasional delays in funding and mixed experiences with customer service. Despite these concerns, Prosper remains a reputable option, especially for those interested in peer-to-peer lending.
While both Upstart and Prosper offer reliable lending services and receive positive reviews, Upstart stands out for its higher customer ratings and consistently praised user experience. Its transparent process and rapid funding make it a preferred choice for many personal loan seekers.
Which Lender Offers More Flexible Repayment: Upstart Or Prosper?
Upstart and Prosper both offer flexible loan amounts and repayment terms, but they cater to slightly different borrower needs. Upstart provides loans ranging from $1,000 to $50,000, making it ideal for those seeking smaller loan amounts. Its repayment terms are fixed at 3 or 5 years, offering simplicity in planning.
Prosper offers loans between $2,000 and $50,000 with repayment terms also ranging from 3 to 5 years. While both lenders allow early repayment without penalties, Upstart’s lower minimum loan amount may appeal to borrowers needing smaller sums.
Upstart vs Prosper Personal Loan: Which Lender Has Fewer Hidden Fees?
Neither lender charges prepayment penalties, you can pay off your loan early without extra cost.
Origination fees are deducted from your loan amount upfront and vary by credit profile.
Late fees apply if you miss a payment: typically $15 or 5% of the unpaid amount, whichever is greater.
Upstart and Prosper have different fee structures, so it’s essential to compare their hidden charges. Upstart charges an origination fee ranging from 1% to 8% of the loan amount based on the borrower’s creditworthiness. Additionally, there is a late payment fee of either $15 or 5% of the overdue amount, whichever is greater. Importantly, Upstart does not impose a prepayment penalty, allowing borrowers to pay off their loans early without incurring extra costs.
Prosper has lower origination fees that range from 1% to 5%, making it potentially less costly upfront. Similar to Upstart, Prosper charges a late payment fee of $15 or 5% of the unpaid amount. Like Upstart, Prosper also does not charge a prepayment penalty. Overall, while both lenders have some fees, Prosper tends to have fewer hidden costs associated with borrowing.
Upstart Application Process
Check Your Rate (Soft Credit Pull) :
- Visit Upstart’s website and fill out a quick online form with your personal, employment, and financial details.
- Upstart performs a soft credit inquiry—this does not impact your credit score.
- You’ll see your estimated rates, terms, and loan amounts in minutes.
Review and Accept Your Offer :
- If you like the offer, proceed with the application.
- At this stage, Upstart will request additional information if needed (such as proof of income or ID).
- You’ll need to specify your intended loan use (e.g., debt consolidation, home improvement).
Formal Application (Hard Credit Pull) :
- Accepting the offer triggers a hard credit inquiry—this can affect your credit score.
- Most applicants receive an instant decision; if more information is needed, you may be asked for further documentation.
Sign and Finalize :
- If approved, review your loan agreement and sign electronically.
- Provide your bank account details for disbursement.
Funding :
- If you accept your loan by 5pm EST (excluding weekends/holidays), funds are sent as soon as the next business day.
- Actual deposit timing depends on your bank’s processing.
Prosper Application Process
Prequalification (Soft Credit Pull):
- Complete a brief online form with your personal, employment, and financial information.
- Prosper conducts a soft credit check—no impact on your credit score.
- You’ll see preliminary rates and terms you may qualify for.
Review and Accept Your Offer :
- If you like the offer, proceed with the application.
- At this stage, Upstart will request additional information if needed (such as proof of income or ID).
- You’ll need to specify your intended loan use (e.g., debt consolidation, home improvement).
Formal Application (Hard Credit Pull) :
- Accepting the offer triggers a hard credit inquiry—this can affect your credit score.
- Most applicants receive an instant decision; if more information is needed, you may be asked for further documentation.
Sign and Finalize :
- If approved, review your loan agreement and sign electronically.
- Provide your bank account details for disbursement.
Funding :
- If you accept your loan by 5pm EST (excluding weekends/holidays), funds are sent as soon as the next business day.
- Actual deposit timing depends on your bank’s processing.
How to Choose Between Upstart and Prosper
Selecting the right personal loan lender can save you money, reduce stress, and help you reach your financial goals faster. Here’s a practical guide to help you decide between Upstart and Prosper.
Personal Loan Comparison Checklist
Before you apply, ask yourself:
- What is my current credit score and history?
- How quickly do I need the funds?
- How much do I need to borrow?
- Do I want to apply with a co-borrower?
- What origination fees and APRs am I comfortable with?
- Am I okay with 3- or 5-year repayment terms?
- Do I prefer a peer-to-peer platform (Prosper) or AI-driven underwriting (Upstart)?
- Have I checked for prequalification (soft pull) with both lenders?
Best Personal Loan Providers in the USA (May 2025 Update)
Below is an updated overview of leading personal loan providers in the US, reflecting the latest rates, terms, and highlights as of May 22, 2025. This table and summary are based on current data from reputable financial review sources.
| Lender | Loan Amount | APR Range | Repayment Terms | Highlights |
|---|---|---|---|---|
| LightStream | $5,000 – $100,000 | 6.49% – 25.29% | 24 – 84 months | No fees, fast funding, flexible terms |
| SoFi | $5,000 – $100,000 | 8.99% – 29.49% | 24 – 84 months | No fees, member perks, joint loans, fast funding |
| Discover | $2,500 – $40,000 | 7.99% – 24.99% | 36 – 84 months | No origination fees, good for debt consolidation, fast funding |
| Upgrade | $1,000 – $50,000 | 7.99% – 35.99% | Up to 84 months | Quick approval, suitable for emergencies |
| Citibank | $2,000 – $50,000 | 10.49% – 18.99% | 12 – 60 months | No origination fees for existing customers, competitive rates |
| Reach Financial | $3,500 – $40,000 | 5.99% – 35.99% | 24 – 60 months | Lowest starting APR, debt consolidation focus |
| American Express | $3,500 – $40,000 | 6.90% – 19.97% | 12 – 36 months | Low rates for cardholders, no origination fees |
Highlights :
- LightStream remains a top choice for borrowers with good to excellent credit, offering large loan amounts, competitive APRs, and no fees. Funding can be as fast as the same day.
- SoFi stands out for high loan limits, flexible terms, and member benefits such as unemployment protection and financial planning. Same-day funding is possible for many applicants.
- Discover is ideal for debt consolidation, with no origination fees and next-business-day funding for qualified borrowers.
- Upgrade is known for quick approvals and is suitable for those needing funds urgently, though APRs can be higher for lower credit scores.
- Citibank offers competitive rates but typically requires applicants to be existing customers. No origination fees and flexible terms are available.
- Reach Financial currently offers the lowest starting APR in the market (5.99%), making it a strong option for those with excellent credit.
- American Express personal loans are available to pre-approved cardholders, featuring low rates and no origination fees.
Our Recommendation :
Choosing between Upstart and Prosper comes down to your unique financial profile and what you value most in a lender.
Choose Upstart if:
You have a limited or unconventional credit history, or your credit score is on the lower end (as low as 300).
You need fast funding—Upstart often provides next-business-day deposits after approval.
You want a lender that uses AI to consider factors beyond just your credit score, like education and employment.
You’re seeking a smaller loan (as little as $1,000) or a higher maximum (up to $50,000).
Choose Prosper if:
You have established or fair credit (typically 640+).
You want the option to apply with a co-borrower, which can help you qualify for better rates or higher loan amounts.
You prefer a peer-to-peer lending model, connecting you directly with individual investors.
You’re consolidating debt or want transparent, fixed-rate terms and strong customer support.
Check your rate with both Upstart and Prosper—there’s no impact on your credit score for prequalification. Compare your actual offers side by side, including APR, fees, and monthly payments, so you can confidently choose the loan that best fits your needs and budget.
Meet the expert:
Yasmeen Khan
Yasmeen Khan is a senior writer and editor at LendingPalm. She has more than 4 years of experience in finance and is an expert on personal loans.
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FAQs About Upstart vs Prosper Personal Loans
Q1. What are the eligibility requirements for Upstart and Prosper?
Ans: To qualify for a loan with Upstart, you must be at least 18 years old, a U.S. citizen or permanent resident, have a credit score of 620 or higher, and a steady source of income. Prosper requires similar criteria but has a slightly higher credit score requirement of at least 640.
Q2. Which lender offers lower interest rates?
Ans: Upstart offers personal loans with fixed APRs ranging from 7.40% to 29.99%, while Prosper’s rates range from 8.99% to 35.99%. Therefore, Upstart generally provides lower starting rates, making it more favorable for many borrowers.
Q3. How much can I borrow with Upstart and Prosper?
Ans: Upstart allows borrowers to take out loans ranging from $1,000 to $50,000, whereas Prosper offers loans between $2,000 and $50,000. This makes Upstart more flexible for those needing smaller loan amounts.
Q4. Which lender has fewer fees?
Ans: Upstart charges origination fees between 1% and 8%, while Prosper’s fees range from 1% to 5%. Overall, Prosper tends to have lower fees associated with loan origination and payment processing.
Q5. How quickly can I get my funds after approval?
Ans: Upstart can disburse funds as quickly as the next business day after approval, while Prosper typically takes about a week for final approval and funding. This makes Upstart a better option for those needing fast access to cash.
Q6. Which lender has a better reputation among borrowers?
Ans: Upstart holds an impressive Trustpilot rating of 9.2 out of 10 based on user reviews, while Prosper has a lower rating of 7.3 out of 10. This indicates that borrowers generally have a more positive experience with Upstart.
Q7. Can I pay off my loan early without penalties?
Ans: Yes, both Upstart and Prosper do not charge prepayment penalties, allowing borrowers to pay off their loans early without incurring additional fees.
Q8. What types of loans are offered by Upstart and Prosper?
Ans: Both Upstart and Prosper primarily offer personal loans, which can be used for various purposes, including debt consolidation, home improvements, and unexpected expenses. However, Upstart also provides options for car loan refinancing, while Prosper focuses more on personal loans tailored for debt consolidation.
Q9. Is there a minimum income requirement for Upstart and Prosper?
Ans: Upstart does not specify a minimum income requirement, but it does consider your income as part of the application process. Prosper generally looks for borrowers with a stable income source, but it does not publicly disclose a specific minimum income threshold.
Q10. How does the application process differ between Upstart and Prosper?
Ans: The application process for both lenders is straightforward and can be completed online. Upstart typically takes a few minutes for pre-approval and provides a decision within days, while Prosper may take about 15 minutes to apply but can take longer for final funding due to its peer-to-peer model.
