Lending Club vs Prosper (Borrower Comparison)

 
Rates:
You set an initial interest rate and lenders will have the opportunity to bid on your loan. This sysem works like an auction and once the loan is fully funded lenders begin to bid down the interest rate.
Your intest rate is a set fixed-rate based on your credit score and not subject to an auction like Prosper.
Size of Loan:
$1,000 - $25,000
$500 - $25,000
Interest Rate:
Range from 7.50% to 35.00%
Range from 7.89% to 21.21%
Loan Term :
3 Years
3 Years
Credit Score:
FICO > 640
FICO > 660
Debt-to-Income Ratio
No Requirement
Must be no greater than 25%
Residence:*
U.S. Resident and valid SSN
U.S. Resident and valid SSN
Loan Fees
.50-3.00% (added to loan amount)
1.25-4.50% (added to loan amount)
Credit History Requirements:  
  • 3 Years of Credit History
  • No Current Deliquencies, Bankruptcies,Open Tax Liens, charge-offs, or non-medical collections in the past 12 months
  • More than 3 accounts in your credit report
Not Available In: Iowa, Maine, North Dakota Iowa, Idaho, Indiana, Kansas, Maine, Mississippi, North Carolina, North Dakota, Nebraska, and Tennessee
 

As you can see there are pros and cons to each of the programs listed above. For those with excellent or poor credit scores I would recommend trying Prosper.com however if your credit is average to good I would recommend trying LendingClub.

* - Please note that it may be harder for residents of the following states to obtain a loan due to their state's maximum interest rates allowed on loans.

Pennsylvania - 6.00% max rate
Kentucky - 8.75% max rate (for loans under $15,000)
Arkansas - 9.75% max rate
Deleware - 9.75%
New Hampshire - 10.00% max rate (for loans under $10,000)
Texas - 10.00% max rate (business loan can be up to 18%)
Tennessee - 11.43% max rate
South Carolina - 12.00% max rate
Virginia - 12.00% max rate

Residents of Iowa, Maine, and North Dakota do not qualify for either Prosper or LendingClub.