Upstart vs Prosper
Last updated July 2026
Upstart
AI underwriting for borrowers standard lenders overlook
Advantages
- Approves borrowers with FICO scores as low as 300 in some cases
- Considers education, job history, and income potential beyond credit score
- Prequalification uses soft pull, no impact on credit score
- Next-business-day funding on most approved loans
- Loans from $1,000, low floor for small borrowing needs
Drawbacks
- Origination fees 0-12%, ceiling higher than Prosper
- Only 3 or 5 year terms
- No cosigner or joint applicant allowed
- Rates for weakest credit tiers can approach 36% APR
Prosper
The original P2P marketplace, now a personal loan platform
Advantages
- Origination fee floor is 1%, lower than Upstart's 0-12% range
- Joint applications supported, useful for building or repairing credit
- Prequalification with soft credit pull, no impact on score
- More term flexibility, 2, 3, 4, or 5 years vs Upstart's 3 or 5
- Fixed rates and terms with no variable-rate surprises
Drawbacks
- Higher minimum credit score, typically 600+ FICO
- No consideration for education or non-traditional income
- Funding typically 1-3 business days, slightly slower than Upstart
- No autopay discount
Upstart and Prosper both target near-prime borrowers who fall outside the underwriting box at SoFi and LightStream. Upstart uses AI-driven underwriting that considers education and employment, so it reaches deeper into the credit spectrum and funds faster. Prosper is a more traditional marketplace lender with a soft-pull prequal, joint applications, and a lower origination fee floor. Which one wins depends heavily on your credit profile.
Feature Comparison
| Feature | Upstart | Prosper |
|---|---|---|
| APR Range | 7.80%-35.99% APR | 8.99%-35.99% APR |
| Loan Amount | $1,000-$50,000 | $2,000-$50,000 |
| Loan Terms | 3 or 5 years only | 2, 3, 4, or 5 years |
| Origination Fee | 0-12% of loan amount | 1-8% of loan amount |
| Funding Speed | Next business day for most approved loans | 1-3 business days typical after approval |
| Credit Required | 300+ FICO possible, better rates at 640+ | Typically 600+ FICO |
| Coborrower Allowed | No | Yes, joint applicants |
| Prepayment Penalty | No prepayment penalty | No prepayment penalty |
Too Close to Call
Upstart wins for the lowest FICO scores and thin-credit borrowers. Prosper wins for 600+ credit with a joint applicant. The right lender depends on your profile.
If your FICO is under 600 or you have limited credit history, Upstart is often the only one of the two that will approve you, and its AI underwriting can produce rates well below what credit cards would charge. Once your credit clears 600 and especially if you can add a joint applicant, Prosper's lower origination floor and more term options usually win on total cost. Prequalify at both, they're both soft-pull, and pick whichever quotes the lower effective APR after fees.
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