Prosper® Card Review
Not everyone’s credit is perfect, but Prosper understands. This card builds your credit with no security deposit when you sign up. You also get to enjoy additional benefits like AutoPay features with flexible payment dates.
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Prosper® Card
- Rewards
- N/A
- Regular APR
- 24.24% - 35.24% variable
- Annual Fee
- $39 (waived for the first year if you sign up for AutoPay before your first statement)
Credit Score: Excellent, Good, Bad, Fair, LimitedKey Features
- No security deposit required
- $0 first year annual fee with AutoPay
- Instantly access 50% of your credit while your card ships to you
- $0 ATM cash withdrawal fee
- You'll be reviewed for regular credit line increases
- Zero fraud liability (which offers protection against unauthorized purchases)
- Annual Percentage Rate (APR) for purchases: 24.24% - 35.24% variable based on Prime Rate
- APR for cash advances: 35.24% variable based on Prime Rate
- Annual Fee: $39 (waived for the first year if you sign up for AutoPay before your first statement)
- Minimum interest charge: no less than $1.00 (ME residents no more than $0.50)
- Foreign transaction fee: 1% of the transaction amount
- Issued by Coastal Community Bank, Member FDIC pursuant to a license by Mastercard® International
- See full terms and conditions here
Editor Analysis:
- While you wait for your Prosper® Card to ship, use a portion of your credit line instantly through Digital Wallet, My Prosper Card App, or Prosper.com.
- Need flexibility on when your statement is due? Choose a monthly payment date that works for you.
- Sign up for AutoPay before your first statement is due and avoid the annual fee for your first year of card membership.
- Depending on your credit score, the APR on this card has the potential to be on the high side. Therefore, this card likely isn't a great option for those who need to regularly carry a balance.
There was a time when obtaining a unsecured credit card was next-to-impossible if you had anything less than a "Good" credit score (most often considered 670 and above). However, several new products have entered the market in recent years, providing consumers with bruised credit the chance to obtain a credit card and build their credit score.
Your credit score has a direct bearing on the interest rate you pay when you go to get a car loan or obtain a mortgage for a home. By raising your score, through responsible use of a credit card, you can save hundreds, or even thousands of dollars in interest charges.
One such product is the CardName, which you only need "Fair" credit (generally considered 580-669) or above for approval and you can begin using your account immediately, even before the physical card arrives.
HOW DOES THE CardName WORK?
The CardName works in the same way as most credit cards, with a wrinkle here and there. You can find out if you would be approved for the card without it adversely impacting your credit score. If you’re approved, you can begin using your account immediately, even before the physical card arrives in the mail.
A nice feature about Prosper is the ability to choose your payment date. This can help tremendously with budgeting, if you operate on a shoestring.
With approval, you will be given a credit limit of up to $3,000. If you make regular payments, your will qualify for increases to your initial credit limit.
Prosper has a user-friendly app called My Prosper. It can help you keep track of your account and provide security alerts, as well as provide tools to help with your budgeting.
HOW CAN YOU BUILD CREDIT WITH THE CardName?
Prosper reports monthly to the three major credit bureaus. So, if you use your card responsibly and make on-time payments, you should see a positive impact on your credit score very quickly. If you qualify for an increase in your credit limit, this should also improve your credit score.
WHAT FEES DOES THE CardName CHARGE?
CardName has an annual fee of AnnualFees a year. This is on the high side compared to many of the cards aimed at consumers with "Fair" credit. However, if you sign up for auto-pay before your first statement, your annual fee will be waived for the first year.
Prosper has some other fees you need to be aware of. There is a fee of late_fee and a fee of foreign_fee of all foreign transactions.
WHAT ARE THE POTENTIAL DOWNSIDES OF THE CardName?
While the CardName serves a useful purpose, you need to be fully aware of some significant drawbacks. At the top of the list is the APR. Depending on your credit worthiness, the rate will be anywhere from RegAPR. This is very high when compared to other cards in this category. You can obtain cash advances through ATMs, but the interest rate is a whopping cash_apr.
Prosper is not a "cash back" card. In fact, unlike most credit cards for "Fair" credit, Prosper has no rewards program or sign-up bonus of any type.
Finally, online reviews have been decidedly mixed on the issue of customer service. While you can’t take these types of reviews as "gospel," customer service appears to be an area where Prosper could make some improvements.
HOW DOES THE CardName COMPARE TO OTHER CARDS?
CardName vs. CardName
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As its name implies, the CardName requires a security deposit when opening your account. This could be $49, $99, or $200 depending on your overall credit health. Prosper requires no deposit.
Regardless of your security deposit amount, your initial credit limit with the CardName will be a flat $200. You will be given the chance to have that limit raised with regular, timely payments. CardName will grant you an initial credit limit of up to $3,000, depending on your credit worthiness.
Neither card offers a rewards program or introductory bonus of any type.
Your APR with the CardName will be RegAPR and the card has a AnnualFees annual fee.
CardName vs. CardName
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As we’ve mentioned, CardName requires no security deposit. By contrast, CardName functions as a classic secured credit card, with your credit limit equivalent to your deposit/balance in your Sable online bank account.
Both cards report regularly to the three major credit bureaus, giving you the chance to build your credit score. With the CardName, you also have the opportunity to "graduate" to an unsecured card, in as soon as four months.
While Prosper has no rewards program, the CardName offers an attractive cash-back program. You earn 2% cash back on purchases at Amazon, Uber, Uber Eats, Whole Foods, Netflix, Spotify, and other select brands. You earn 1% cash back on all other purchases. As a bonus, Sable will match, dollar for dollar, all the cash back you have earned during the first 12 month after account activation.
Another significant difference between these cards is in the area of fees. The CardName charges no monthly or annual fees, plus no late payment fees. Instead, Sable simply rolls the interest from one month into the next month.
CardName vs. CardName
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A classic secured credit card, CardName requires a minimum security deposit of $200. You can increase your deposit amount at any time and your spending limit will be equal to your deposit balance. Prosper Card has no required security deposit. Citi is a CardRatings advertiser.
CardName gives you the opportunity to "graduate" to an unsecured after 18 months, at which time your security deposit will be returned to you.
CardName charges no annual fee. Prosper Card charges AnnualFees. Citi Secured does charge foreign_fee for foreign transactions though, so it may not be a great option if you regularly travel abroad.
Both cards are attainable with "Fair" credit or a limited credit history.
Neither card offers a rewards program of any type.
IS THE CardName A GOOD CREDIT CARD?
CardName can be a beneficial card if you have no credit or damaged credit and can’t qualify for a higher end card. Use this card responsibly and you can build your score in a relatively short period of time. This can save you considerable money in interest payments when you make major credit purchases in the future.
However, Prosper Card comes up short in some areas and you will want to weigh your options. You will likely be able to find card options for those with "Fair" credit that have an APR below the RegAPR offered by Prosper.
The annual fee is not overly burdensome but you can find other cards that charge a lower fee or no fee at all. There are also cards in this category that offer cash back or some other type of rewards program, so be sure to consider all of your options if rewards are important to you.
Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.
This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company. CardRatings.com does not review every company or every offer available on the market.
