The Prosper credit card offers various features for your fair credit score. If you have thought of getting high “credit ratings,”- you should earn this card to get an effective line of credit. Moreover, your benefits are in your hands because your borrowing habits will be much more responsible for the good and bad effects on your wallet and the market. We always suggest a reasonable approach for our users. Here, in this article, we will also cover everything in layman’s terms ranging from overview, benefits, features, pros & cons, and credit factors to alternatives. So, don’t miss anything to find a better way to lead the same decent credit history as you always wanted. Let’s get started.
Overview of Prosper Credit Card
Based on profound research for Prosper credit card review, we have found that this card can Prosper your pursuit of an unsecured credit card to build your credit score. If you are in the US or want to settle your finances, you can apply for this card with a credit score of 640-850. Moreover, be free from a security deposit and enjoy one year of no annual fee services. Coastal Community Bank issues the Prosper card and doesn’t conduct any hard inquiry except the initial application decision. Moreover, the card issuer company can waive the annual fee for the first year only when you set autopay for the bill repayment account before you receive the first statement from the bank.
As per the official disclosure of Prosper representatives, almost 80% of cardholders hold less than 660 when qualified. Yes, if you want a traditional card-like experience, you must deal with its line of credit. Apart from that, if anything is unsatisfactory, you can switch to other cards. However, for a better start- you can or should rely on it. According to the Federal Reserve Board for all types of credit cards, the card issuer can impose 15% as an average regular APR & 17% for “Balance Carrying Accounts.” You must remember- these norms because, like most credit card companies or banks, it also imposes higher variable purchase APR.
For a “Clear Eyed” decision- you should not leave any stone unturned. That means never relying only on third-party information providers. Instead, search for official sources and use mediators for clarity if something is unclear from the bank itself. Limited/ fair/bad/good/ Excellent credit can be favorable for the approach of this card. Other than that, you must have a good income even though- it allows you flexible payment dates features for your issued bill.
- No security Deposit
- “Lesser than Perfect” credit score
- No hard credit check
- No credit affect
- Easy Qualification process
- Credit building
- Annual fee waiver with autopay (First year only)
- Enough maximum credit limit
- Automatic reviews for a line of credit increase
- No ATM Withdrawal fee
- Instant application
- Credit increase every 3-months
Benefits and Perks of Prosper Credit Card
With so many pros and cons, a Prosper card discloses various benefits and perks to attract the engagement of cardholders. Let’s see some of them.
Bad Credit Applicants
Most of the time- you don’t feel good dealing with credit card issuers because they impose higher fees and other multiple charges for bad credit. Thankfully, you are lucky to have this card because it inflicts a higher APR or a few dollars of annual fee- but doesn’t include any hidden or baseless charges on its cardholders. It clearly states its revenue contribution from your side to know your final decision. Prosper credit card limit may be less for you. However, that should be for several other factors. Not only your bad credit. So if you feel unlucky to get an unsecured card because of a lower credit score- don’t hesitate to give a try for this card too.
Credit Score Affect
Like a few other companies, Prosper card reviews your documents and information to see- whether you qualify; or not! That is called the pre-qualification process. The pre-qualification process will not affect your credit score because it doesn’t conduct a hard check for your line of credit. Contrary, you may see some points drop on your credit report with the name of Prosper card when you receive the response for the application with interest rate & credit line. In clear words, credit card application approval and rejection both affect your credit score for a few periods. Here too- even for approved credit cards, you may trigger some effects on the credit score that are rectifiable later with rule-based performance.
No Security Deposit
Most borrowers take loans and credit cards to build their credit scores. Of course, more than that are out for genuine reasons or the financial crisis. However, in both cases, they have to manage their credit score. Because that way, they can lead a very decent life in the future. For that reason, they get ready even for higher security deposits. There is no requirement to run behind the secured credit card with a Prosper card. Without paying even a single penny at the initial stage; you can get an exact sufficient credit limit to fix your spending habits or necessities.
Taking responsibility is a big task here. You can convert limited credit to an unlimited level. If credit building is your pursuit too- you can have this benefit with timely payments of your bills on this card. Everything surrounds your debt repayment capability. You must balance your income and expenditures to see the green remarks on your credit report. Apart from that, you have to make sure that you never carry a balance on your account because that will be a more elevated factor for negative remarks.
Credit Bureau Reporting
It deals with every single one of the three credit bureaus. Experian, Equifax, TransUnion. Your motive for your acts will be reported by these bureaus- to send a message to other credit card issuers banks, companies, or credit groups. A positive report will not let you run behind the money lenders. Instead, you will automatically get the approved loan amount and credit card suggestions after a proper soft credit check. You have to analyze that report for the good and bad for your wallet.
Line of Credit
The Prosper credit card limit is $500-$3000. At the initial level, you would be supposed to manage with a lower credit limit. $500 is enough to start at least. Later it can go up to $3000 if you qualify for the same. You should not forget to change your spending strategy. Because the higher limit demands credit utilization rate adoption. If you follow this strategy you can handle the heavy interest easily.
The cardholder does not need to remind the bank about your account review for the credit limit increase. Rather your credit card account will automatically come under a review process every 3 months. It is similar to every customer. However, nothing is guaranteed. Review means the limit can increase, decrease, or may not find you suitable for any changes. So, you should focus on this initiative to qualify for the increase.
Cash Advance Fee
It is never a good idea to get cash advances from your credit card. Take an intelligent way to get it from your debit card only. Yes, a Proper card doesn’t charge any fee, but that doesn’t mean you will not configure any other points. ATM fee is not there. However, you should be ready for a 33.74% (variable) higher APR for your cash advance. Not just that, the third-party ATM will not allow you free services.
Low Annual Fee
Yes, it is not zero like Tomo’s credit card. Still, you can afford it for a $39 annual fee. For the first year, you don’t even require to pay even a single dollar with autopay. That’s quite ok to establish yourself in your emergencies. All-in-all it is much better than the Credit One Platinum Visa card which has various charges to disbalance the budget.
The most satisfactory part is its usage. On your approved card, you don’t have to wait to log in. As soon as you receive the approved mail with the card number. Without wasting time on the shipment process and its final arrival, you can use the card via the Prosper mobile app. Whether you have an android or iPhone, go to the app store to launch the complete services instantly.
Other Benefits Via Prosper Credit Card Reviews
- This card gives complete protection against unauthorized purchases from your card. For lost or stolen, it secures zero fraud liability feature where whatever amount is in the question- you won’t be responsible for anything.
- In the same way, this master provides ID theft protection also- to those who have faced any fraud with a lost, damaged, or stolen card. A 24-hour emergency number helps you report your complaint to access emergency card replacement. Apart from that, you can cash for advance if you need it at that time.
- Third, you will get a 15% discount for Mastercard airport’s “Meet & Greet” services. More in this line, one can benefit from agent guidance for the airport arrival process. Other than that, you can break out financial advice content free of cost with various other courses and articles.
- You can add your Prosper Credit Card with any UPI ID or wallet to make a payment. It supports Google Pay and Apple Pay for a smooth purchase.
Rates and Fees
- The annual fee is $0 for the first year with autopay activation & after that, you are liable for a $39 annual fee, paid every year.
- No, there is no cash advance fee for ATMs except charges imposed by third-party service providers.
- A foreign transaction fee is 1% for those who want to enjoy international or outside USA transactions. It is quite better than other cards, be it secured or unsecured credit card.
- Up to $40 is for a late payment fee which you can waive with timely payment. These savings are in your hand. If you can’t adjust to this policy, you can go for the other better option.
- Interest rates or APRs are the most oversized drawbacks of this Prosper card. You must step back to pay more than your repayment ability.
- Purchase APR is 22.74% to 33.74% which is variable. Again, a higher disadvantage of the selection is the Cash Advance APR of 33.74% (variable). That’s not all.
- You have more burden with interest charges for not settling your monthly balance on time. Your creditworthiness will decide your APR. The interest charge is $1 minimum and $0.50 for “Maine Residents.”
Rewards and Cashback
You should not purchase anything in the hope of any cashback and rewards. There is no feature for bad credit or fair credit card holders. Yes, various companies allow rewards programs even for bad credit holders. However, you can’t get them with a Prosper card. It is again the second largest drawback of this unsecured low annual fee but higher APR credit card.
Who Should Apply for a Prosper Credit Card?
To make it a good choice for yourself, you should be on any one of the following lists. Let’s know it in detail.
Bad credit is quite a common term for credit card issuers and borrowers. So, there is no chance of failure to get the loan and credit card with a few matched words with you. With a Prosper credit card, you can take over this opportunity even with fair or bad credit. No one can neglect the interest rate whether it chooses the secured card or unsecured card. What one can do is just research well with enough time. After all, you have to come out from this bad credit image that is affecting you and your budget, wallet, or bank account for so long.
If you know how to deal with the financial market then this card can benefit you. A perfectionist is always safe because of their higher knowledge of so many subjects. If you have any emergency and want an unsecured credit card to know that it is your cup of tea. Then definitely go with this highlight. There are no hidden charges even if you have the opportunity to level up yourself with fewer adjustments. Yes, rewards are not there. However, being a traditionalist, you know how to arrange the payment on time.
Now, you know there is no fee for a cash advance from the ATM. If still you are ready to pay the loaded APR, then do check out the details and apply instantly. Moreover, a cash advance is a need that can occur at any time So without making it your habit you can securely get through this pond of heavy fees and rates.
How to Apply for Prosper Credit Card?
- You must be 18 years old to apply for this card. Though, it prefers a 640-800 credit score. However, many sources have confirmed that applications are acceptable with a fair credit score of 580-670 (FICO score).
- Moreover, you should not ignore the pre-approval process to know whether you qualify because that will not impact your credit score. After that, you submit the formal application and let it affect your credit report with a few points.
- You have two choices for the application- Phone and Online. Go as you like.
- Search for the activated contact number to share the required information.
- For the pre-qualification process and final application, you can visit the website and find out within a minute about your qualification for a line of credit and interest rate.
- Once you decide to continue, give a formal application and let the card issuer or bank do a hard check over your credit. Apart from being major in age, you should be a US resident (except Iowa/West Virginia). Social security number is consequential to verify your resident details.
- You can use its mobile app to manage the account and monthly payments with or without due date customization.
Alternatives for Prosper Credit Card
Prosper Credit Card has been a popular choice among consumers seeking financial flexibility. But you should also know its alternatives. Explore these alternatives to Prosper Credit Card and find the one that suits your financial lifestyle while providing optimal value and benefits:
Discover it Secured Credit Card
- You can get a secured credit card with a $200-$2500 security deposit at zero annual fees for your bad credit. Discover it card will help you generate your credit after paying the desired amount for the line of credit. One needs a 300-669 credit score for qualification. On purchase, the cardholder can acquire 2% cash back on gas and restaurants on each category combination of $2500. 1% cashback is fixed for other qualified purchases.
- 25.99% is the variable purchase APR. So, you should not leave the balance as you will get monitored by credit bureaus.
- It allows foreign transactions.
- It is an unsecured card like a Prosper card so no security deposit. A 300-669 credit score is enough to apply for and qualify for a $300 credit limit.
- However, an annual fee is higher with $59 to $99 along with a 24.90% to 35.90% variable “Purchase APR.” Apart from that, With the Destiny credit card you can do foreign transactions by paying a prescribed fee and executing balance transfers also.
- For the first year, there is no cost for a cash advance. It reports to credit bureaus.
- The annual fee of Milestone Mastercard is $35-$99 for bad credit of 300-669. Pay purchase APR 24.90%-35.90%. Benefit from cash advances with this unsecured credit card.
- Get a $300 credit limit and avoid it if it is low as per your requirements. If you compare it with the Prosper card, we recommend you avoid this as your choice to build your credit.
Prosper credit card has 4.8 ratings out of 1,236 votes on the Google Play store and 2.4 out of 93 ratings on the Apple App store. If you have the potential to pay the higher APR and annual fee with complete settlement then there is no question to sideline the application for this credit card. For any further queries, you can always get back to us.
Frequently Asked Questions (FAQs)
Q.1 Why is my Prosper card restricted?
Ans. If you found your Prosper card restricted, you may have attempted something out of the policy. However, you need to contact the service provider team to fix the issue as soon as possible. Moreover, you can analyze the terms and conditions of the card one more time. This will help you apprehend your mistake with your own efforts.
Q.2 Who owns Prosper credit cards?
Ans. Prosper Unsecured credit card is the authorization of Coastal Community Bank. The borrowers who want to work on their credit history can apply on the official website with complete information and documents and use their cards to win cashback and rewards. It has approved more than 80% of cardholders with bad credit.
Q.3 What credit score do you need for a Prosper card?
Ans. You need a fair credit score (640 or higher) to apply and qualify for the Prosper card. After approval, you can increase your credit score to a higher or excellent level. If you have an excellent credit score then maybe the company can give you relaxation with an interest rate. However, that may not be a good investment for you.
Q.4 How often does Prosper increase its credit limit?
Ans. Every three months, Prosper verifies your account for repayment details to increase your credit limit or line of credit. If you have taken this card or are planning for the same then you should be able to pay your bill before the due date. That way you create an impression before the card issuer or that information will get shared with credit bureaus to mention it in your credit report for a better approach with other money lenders and credit card issuers. Prosper offers a $500-$3000 credit limit. You can’t hope for more than this space.
Q.5 Can you withdraw money from a Prosper credit card?
Ans. As per our analysis, there is no ATM fee applied to Prosper’s credit card cash advance. However, that’s not the whole truth. You must engage with the term Cash advance APR. That term includes 33.74% as a cash advance interest or APR. Moreover, the cash withdrawal can add up a fee that may be generated from the ATM of the third-party association.
- Elizabeth Jones is one of our editorial team’s leading authors on credit card offers, services & more. With over two decades of experience in the consumer credit industry and as a nationally recognized credit expert, Elizabeth provides in-depth analysis of both traditional & alternative forms of credit. Elizabeth regularly appears on many major media outlets including NBC Nightly News, Fox Business Network, CNBC & Yahoo! Finance. She is also a frequent contributor to Forbes Magazine. As a highly appreciated author for our exclusive Editorial Team, Elizabeth strives to provide readers with a trustworthy advice on how to manage their credit accounts while staying informed on the latest offers in the marketplace.
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