Any natural person at least 18 years of age who is a U.S. resident in a state where loans through our marketplace are available with a U.S. bank account and a Social Security number may apply to become a borrower. After a borrower submits a loan application, Prosper first obtains a credit report from TransUnion to evaluate whether the applicant meets the underwriting criteria Prosper has established in conjunction with WebBank.
WebBank originates loans to borrowers and then sells and assigns the promissory notes evidencing those loans to PFL. The underwriting criteria apply for all Borrower Loans originated through our marketplace and may not be changed without WebBank’s consent. For the Note Channel (i.e., loans funded through listings posted on our marketplace), all borrowers who request a loan are subject to the following minimum eligibility criteria:
- At least a 640 FICO 08 score
- Fewer than five credit bureau inquiries (after excluding duplicate inquiries) within the last 6 months
- Annual income greater than $0
- Debt-to-income ratio of no more than 50%
- At least three open trades reported on their credit report, and
- Have not filed for bankruptcy within the last 12 months.
Prosper also allows two borrowers to apply together as joint applicants for a co-borrower loan. Each borrower applicant is held jointly and severally liable for the obligations under the loan. In the case of co-borrower loans, the primary (or “specified”) borrower must satisfy the above credit criteria (except the debt-to-income ratio for joint loans is calculated using the combined debt-to-income ratio of the primary and secondary borrowers without duplication of combined debt). The secondary borrower must also satisfy certain additional credit criteria, including a minimum FICO score of at least 600, at least one open trade reported on the secondary borrower’s credit report, and no bankruptcy filings within the last 12 months.
In addition, a borrower may have up to two loans through Prosper outstanding at one time, provided that:
- First loan is current
- The aggregate outstanding principal balance of both loans does not exceed the then-current maximum allowable loan amount for loans (currently $40,000)
- The borrower has held his or her first Prosper loan for at least 6 months, and
- The borrower complies with the prior-borrower constraints below.
For co-borrower loans, the foregoing additional requirements will apply if either the primary or secondary borrower has a currently outstanding loan.
Further, for any borrower who has previously obtained a Borrower Loan through our marketplace, such borrower must also (1) have no prior charge-offs on Borrower Loans originated through our marketplace, and (2) have never been more than 15 days delinquent on any Borrower Loan obtained through our marketplace within 12 months of his or her application.
Underwriting requirements for Borrower Loans, including eligibility requirements for subsequent loans, are subject to change over time.