As an online lending platform, Prosper matches borrowers with investors who can meet their credit needs. In addition to personal loans, the lenders in the network offer mortgage loans and credit cards. Prosper has served more than 1.4 million customers nationwide since its founding in 2005.
TD Bank is one of the nation’s ten largest banks, serving more than 9.8 million customers in select states in the Northeast and Mid-Atlantic, along with the Carolinas, Florida and Washington, DC. In addition to the wide variety of banking services, it also offers personal loans with generally competitive terms.
While both lenders are solid choices if you’re looking for a personal loan, your credit profile will likely determine which is the better option. Make sure you understand the key differences between the two before applying for a loan.
TD Bank vs. Prosper at a glance
Loans offered through TD Bank and Prosper are quite similar, but they suit different credit profiles.
| TD bank | Bloom | |
|---|---|---|
| Bank rate score | 4.7 | 4.7 |
| Better for | Borrowers with good or excellent credit | Borrowers with less than perfect credit |
| Loan amounts | $2,000 – $50,000 | $2,000 – $50,000 |
| APRs | 8.99%-23.99% | 6.99%-35.99% |
| Length of the loan | 36-60 months | 24-60 months |
| Cost |
|
|
| Minimum credit score | 700 | 640 |
| Time for financing | Next day after approval | Next day after approval |
Personal loans from TD Bank
Plus points
- Low maximum APR.
- Autopay discount available.
- Low costs.
Cons
- Not available in every state.
- Good to excellent credit required.
- Limited refund options.
The TD Fit Loan, TD Bank’s personal loan product, offers flexible loan amounts up to $50,000. The loans can be used for a variety of purposes, including financing a major purchase, home improvement projects and expensive car repairs. Considering the few lender fees, a competitive starting APR and autopay discount, a personal loan from TD Bank may be ideal if you qualify.
The only two major drawbacks to keep in mind are that TD Bank loans require borrowers to have good to excellent credit and the lender does not serve every state.
Prosperous personal loans
Plus points
- Financing for the next day.
- Low starting APR.
- Joint applications allowed.
Cons
- High maximum interest rate.
- Multiple charges.
- No autopay discount.
Prosper offers borrowers a unique lending model that is more flexible compared to traditional lenders. The loans have a relatively low credit score requirement, and Prosper currently has one of the lowest starting APRs on the market: 6.99 percent.
That said, Prosper charges an origination fee that can be as high as 7.99 percent of your total loan amount. Moreover, it has a high interest rate cap of 35.99 percent. If you have a lower credit score, you’ll likely get a higher rate. However, because Prosper offers a joint lending option, you may be able to qualify for a lower rate if you sign up with someone with a higher credit score.
How to Choose Between TD Bank and Prosper
When you compare TD Bank and Prosper, their loan offerings are virtually identical when it comes to loan amounts, repayment terms, and financing. But they differ greatly in overall costs and eligibility requirements. Choose TD Bank if you have a higher credit score and live in the service area. Otherwise, Prosper is the better option.
TD Bank is better for borrowers with good or excellent credit
TD Bank’s minimum credit score requirement is 700, which is on the higher side. That said, it charges less fees than Prosper, on top of a lower APR limit and a 0.25 percent rate discount for signing up for autopay.
If you have good or excellent credit, TD Bank loans may be a good fit for you. And even if you don’t qualify for the lowest APR, you may still be able to qualify for a cheaper loan than with Prosper.
Prosperity is better for borrowers with less than perfect credit
Prosper requires its borrowers to have a credit score of at least 640 to qualify for a personal loan, making it better suited for those with fair credit. Although Prosper charges more fees than TD Bank, its low starting APR of 6.99 and joint application option can offset some of these costs. That means that even if your credit score needs some work, you can still get a loan at a relatively low cost.
Compare lenders before applying
TD Bank and Prosper are great options to consider if you’re considering getting a small or medium personal loan. If you have good or excellent credit, TD Bank should be your first choice because you won’t have to pay origination fees, which can add up to the total cost of your loan.
If you have fair credit, Prosper loans may be a better fit. It offers more flexibility when it comes to eligibility requirements, and you can add a co-borrower to your application. That said, if your credit score is in the low 600s and you don’t have a creditworthy co-borrower, you could get a high interest rate.
Ultimately, the best personal loan for you will depend on your financial situation, so compare rates from multiple lenders before making your final decision.
