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Prosper Credit Card: Everything You Need to Know

In this article we are going to talk about the Prosper credit card, how to apply, and its advantages and disadvantages.

Building your credit score can be pretty challenging if you are entering adulthood or rebuilding after a bad financial hit.

Most banks are wary of working with people they deem untrustworthy regardless of how a person’s credit score is tanked. 

So, even applying for a credit card with traditional financial institutions, there is no guaranteed approval, as most will pull a hard credit check on the applicant’s credit report.

However, there are other options out there for those who are denied credit cards in banks. Since the turn of the century, there started to pop up independent financial institutions online. 

These institutions were specifically made to help people with less-than-ideal credit scores.

One of these platforms is Prosper, and the financial institution recently introduced the Prosper credit card. The credit card requires no annual fee for the first year, and the applicants can use it to improve their credit scores. 

Prosper Overview 

The Prosper company was introduced in 2005 as one of the first peer-to-peer lending marketplaces in the United States. And it has helped over 1,350,000 borrowers find the funds they needed.

Prosper was founded in Silicon Valley and aims to change people’s lives by providing cost-effective financial options on a user-friendly platform. 

According to the platform, by utilizing its highly engaged workforce, trusted brand, artificial intelligence, and cutting-edge technology, the company has facilitated $20 billion of affordable credit solutions.

Some leading investors that back the Prosper Marketplace include Francisco Partners, Sequoia Capital, Institutional Venture Partners, and Credit Suisse NEXT Fund. Having such investors further builds trust among potential applicants. 

Besides being able to apply for fixed-rate loans between $2,000 and $50,000, you can now also apply for the platform’s credit card. Prosper offers a credit card to help its clients establish credit and take control of their money. 

What Is the Prosper Credit Card?

The Prosper credit card can be an excellent choice if you need to improve your bad credit and seek a method to do so. If you sign up for AutoPay, this credit card has a $0 annual fee for the first year.

This card offers a line of credit of up to $3,000 once you are approved. 

Despite the fact that the APR for purchases (variable APR) ranges from 20.49% to 31.49%, it is still reasonable if you use the credit card for regular purchases and pay off the entire debt each month.

A good feature is that you can select a monthly repayment date that is suitable for you. And if you are concerned about your credit rating, you should not be. Applying will not affect it in any way. 

If you want to apply for the Prosper credit card, you should know that you will not need to put down a security deposit.

Furthermore, you do not have to worry about ATM fees. The marketplace does not charge any when you make a cash withdrawal. 

Is Prosper Card a Real Credit Card?

The Prosper Card is a real credit card. It reports to all three major credit bureaus, Experian, Equifax, and TransUnion.

As your credit report is based on the data that your lenders provide to the credit agencies, credit reporting is a crucial component of establishing credit.

Lenders are not bound by law to record your credit history. Some submit information to one or two of the main credit bureaus. The fastest way to raise your credit score is with credit cards that send reports to credit agencies.

The Prosper credit card is issued by the Coastal Community Bank, which further proves its status as a real credit card, and works in all places where Mastercard is accepted.

The Coastal Community Bank has been in business since 1997 and is based in Everett, Washington. 

The bank is also a member of the FDIC and provides savings accounts, loans, investment accounts, etc. With the Prosper credit card, you can repay your purchases over time. 

What Credit Score Do You Need for a Prosper Credit Card?

On the Prosper website, no official minimum credit score is posted for applying for the Prosper credit card. However, you may be able to qualify with a bad or fair credit rating.

According to Prosper, 80% of cardholders have credit scores below 660.

Contrary to most cards targeted at people with less-than-ideal credit scores, it is not a secured credit card and does not call for a security deposit.

For anyone who wants the standard credit card experience while building their credit, the Prosper Card is an attractive alternative.

Without a hard credit inquiry, which temporarily lowers your credit score, you normally cannot tell if you will be approved for a credit card.

So that you can decide if it is the right card for you, the Prosper Card lets you see what you can expect to be offered without hurting your credit score.

Pros 

  • No annual fee for the first year 
  • Apply no matter your credit score 
  • There is no security deposit required
  • Reports to the three major credit bureaus 
  • An initial line of credit up to $3,000
  • Check if you qualify without impacting your credit score 
  • The Prosper Card helps you build your credit
  • Choose your payment date 
  • A mobile app is available 
  • AutoPay available 
  • Automatic reviews for a credit line increase
  • There are no ATM withdrawal fees 

Cons 

  • High APRs 
  • Annual fee after the first year of $39
  • There are no rewards 

Where Can I Apply?

You can apply for the card directly on Prosper’s official website. First, you will need to sign up to open an account with Prosper so that you can apply for a credit card.

Once you apply and get approved, you may expect the initial line of credit offered to you to be between $500 and $3,000. 

By applying for a credit card on their official website, you will also gain access to exclusive financial courses and content. Moreover, Prosper provides its clients with fraud protection via advanced encryption technology. 

As for the repayment, you do not have to worry about missing a date because you can turn on AutoPay, and the amount needed will be automatically withdrawn.

Recommended read: How to Become a Millionaire in 5 Years or Less

Prosper Credit Card Login Page

Once you are on the Prosper Credit Card page, you can click on the login page (check screenshot below). If you are already signed up, it will ask you for your username and password to log in.

If you have yet to sign up for a credit card, click on “New User”. It will prompt you to input your email address so you can open an account with Prosper.

Conclusion 

The Prosper credit card is an excellent choice for those with a bad credit history or those trying to rebuild their credit score.

With this card, you will not have to worry about an annual fee during your first year. And you don’t need a security deposit when signing up. 

Moreover, you do not have to have a stellar credit score to apply. And you can withdraw from the ATMs without paying any charge fees.

The platform also lets you check if you qualify for a credit card with them without impacting your current credit rating.

Photo by Clay Banks on Unsplash