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The Prosper® Card is an unsecured credit card with an initial credit limit of $500–$3,000. Although it’s designed for people who want to establish credit, it doesn’t require a security deposit the way many similar cards do. It also has no monthly fees, program fees, credit limit increase fees, or fees for cash withdrawals.
Although there’s a $39 annual fee, you can have this fee waived in the first year if you set up autopay to make minimum monthly payments on your card.
The Prosper® Card is a credit card for borrowers who want to establish credit. Unlike many similar cards, it’s not a secured credit card. This means there’s no need to pay a security deposit, and it also means that your credit line depends on your creditworthiness rather than on the deposit you pay.
The Prosper® Card offers a credit limit of $500–$3,000 with automatic reviews for increases—better than what you’ll get with a lot of credit-building cards (which often have maximum credit limits as low as $200 or $300).
While it offers a good credit limit, the APR for the Prosper® Card is high, at 19.24%–30.24%. However, the annual fee is only $39, and the Prosper® Card issuer will waive this fee for the first year if you set up autopay.
The Prosper® Card also doesn’t charge fees for:
- Monthly maintenance
- Credit limit increases
- Cash advances
- Opening your account
- Payments that bounce due to lack of funds
- Going over your credit limit
Despite its potentially high purchase APR and high cash advance APR of 30.24%, the Prosper® Card is a relatively inexpensive unsecured credit card, making it a solid option for anyone whose credit isn’t quite up to scratch.
Prosper Card® Important Details
Basic Card Details
- Credit card issuer: Coastal Community Bank
- Regular APR: 19.74%–30.74% (variable and dependent on creditworthiness)
- Annual fee: $0–$39
- Security deposit: N/A
- Grace period: 21 days
- Initial credit limit of $500–$3,000.
- Credit limit increases available after 3 months.
- Cash advances are available with no fees.
- Foreign transactions are available.
- Flexible payment due dates.
- Balance transfers are not available.
- Not available to residents of Iowa or West Virginia.
- Zero fraud liability.
- Credit reporting to TransUnion.
- Mastercard® benefits (e.g., fraud and ID theft protection, TransUnion credit report monitoring, and emergency assistance for lost or stolen cards).
Prosper® Card Feature Breakdown
In this section, we’ll look at some of the most important features of the Prosper® Card to see how it fits your financial and credit-building needs.
- Annual fee: $0–$39
- Cash advance fee: None
- Foreign transaction fee: 1%
- Late payment fee: Up to $40
The annual fee for the Prosper® Card is usually $39, but you can get this waived in the first year if you set up autopay for its minimum monthly payments. Notably, the Prosper® Card doesn’t charge a fee for cash advances (i.e., getting cash from your credit card through an ATM withdrawal).
As cash advance fees are common among credit cards and these fees are often expensive, this is a major perk if you’re likely to withdraw money using a credit card. However, beware that cash advances gain interest at a high rate and don’t benefit from a grace period, so you should still avoid them if you can.
- Regular APR: 19.74%–30.74% (variable)
- Cash advance APR: 30.74% (variable)
- Minimum interest charge: $1 (or $0.50 for Maine residents)
If you don’t pay your credit card balance in full each month, you’ll be charged interest. The interest you’ll pay each year depends on your APR (“annual percentage rate”), which will be determined by your creditworthiness.
Notably, the Prosper® Card doesn’t have a penalty APR (an increased APR that credit cards often charge if you miss payments).
The Prosper® Card gives a 21-day credit card grace period (beginning on the first day of the new billing cycle). The grace period allows you time to pay your bills in full without racking up any interest.
If you pay off your balance in full by the due date, your purchases during the grace period won’t accumulate interest. However, if you carry a balance from previous billing cycles, you’ll have to pay interest on any charges you make to your card during the grace period.
The Prosper® Card doesn’t offer rewards. This isn’t surprising, as rewards credit cards are rarely available to applicants with poor credit or limited credit histories. However, cards with cashback programs and rewards points do exist for holders of lower credit scores if you’re willing to look for one.
For benefits, the Prosper® Card offers:
- Zero fraud liability protection: You won’t have to pay for any unauthorized purchases on your card (e.g., if your card gets lost or stolen).
- Mastercard® ID Theft Protection: This includes fraud and ID theft protection, TransUnion credit report monitoring, and emergency assistance if your card is lost or stolen.
- 24-hour assistance for lost or stolen cards: This gives you an emergency phone number to report your card lost or stolen and get an emergency card replacement. You can also ask for emergency cash advances.
- Discounted Mastercard® airport concierge services: You can enjoy a 15% saving on Mastercard® airport meet-and-greet services.
Cash advances are allowed on the Prosper® card.
Many credit cards charge a fee for cash advances, often around 3% or 5% of the advance amount. However, the Prosper® Card charges no cash advance fees. The cash advance APR, meanwhile, is 30.74%.
If you make a cash advance, pay it off as soon as possible to avoid expensive interest charges.
Initially, the Prosper® card will give you a credit limit of $500–$3,000, with opportunities for credit limit increases. Your account will be reviewed automatically every three months to see whether you’re eligible for a credit line increase.
Credit reporting is an important part of building credit, as your credit report is based on the information your lenders send to the credit bureaus.
Lenders aren’t legally required to report your credit history; some report to only one or two of the major credit bureaus, if any. Credit cards that report to the credit bureaus (Experian, Equifax, and TransUnion) help you improve your credit score quickly.
The Prosper® Card claims to be suitable for establishing credit. However, when we contacted customer service, they told us that it currently reports only to TransUnion (and not to Equifax or Experian).
Although the Prosper® Card issuer will only report your card payments to TransUnion, you should still keep up with your monthly payments. Your TransUnion credit score may suffer if your payments are late or missed.
Credit Score Requirements
The Prosper® Card is aimed at borrowers who want to establish or rebuild credit.
We contacted customer service, and they told us that the Prosper® Card is available to holders of bad credit. FICO scores of less than 580 are considered “bad” or “poor,” so you may still be eligible for the Prosper® Card if your score is lower than this.
Application and Approval
You can apply for a Prosper® Card by phone or online:
- By phone: Call (866) 615-6319 to apply.
- Online: Go to the Prosper® Card website to prequalify and find out whether you’re eligible for an offer (and, if so, what your approximate interest rate and credit line amount will be). This process will often take no more than a couple of minutes and will not impact your credit score.
If you decide to accept a Prosper® Card offer, the issuer says it will conduct a credit check. This means you’ll get a hard inquiry on your credit report. This type of credit check, which is also known as a hard pull or hard credit check, usually knocks a few points off your credit score.
Note that you must meet the following criteria to be eligible for a Prosper® Card:
- You must be at least 18 years old.
- You must be a US resident living in a state other than Iowa or West Virginia.
- You must have a valid Social Security number.
Managing Your Account
You can also make payments by phone. The phone number for this is (800) 903-4697.
To send a payment by post, write your full name, address, and the last four digits of your card number on a check or money order, and send it to one of the following addresses.
If you’re using regular mail:
Prosper Card Services
P.O. Box 650078
Dallas, TX 75265-0078
If you’re using overnight mail:
Attn: Lockbox 650078
3000 Kellway Drive, STE 120
Carrollton, TX 75006
If you need help with your Prosper® card, you can call customer service at (800) 903-4697.
For general inquiries and correspondence, you can email [email protected] or write to:
Prosper Funding LLC
221 Main Street, STE 300
San Francisco, CA 94105
Lost or Stolen Cards
If your Prosper® Card is lost or stolen, call (800) 903-4697. Alternatively, you can request a replacement online or on the app.
Should You Get the Prosper® Card?
If you have a low credit score and you’re looking for an unsecured credit card, the Prosper® Card is a good option. The major downsides are that the issuer doesn’t explicitly state that they report to all three major credit bureaus and that there’s the potential for a very high APR.
However, the Prosper® Card comes with low fees, a reasonably generous maximum initial credit line, and opportunities for credit limit increases. All in all, we recommend it to anyone who needs a quick credit boost or an inexpensive way to get a short-term loan and would prefer not to pay a security deposit.
Who is this card for?
- Holders of lower credit score holders who can’t afford fees or deposits: If you have bad credit, and you don’t want to pay the kind of fees and deposits that are often associated with credit cards for lower credit scores, the Prosper® Card is a great solution. It’s unsecured, low on fees, and accessible enough that you may be eligible even if you’ve been rejected for other cards.
- Holders of lower credit scores who want a credit boost: You can pre-check your eligibility for the Prosper® Card without damaging your credit score. If you qualify, you can then use it to start building your credit score by paying your monthly bills on time.
To decide whether the Prosper® Card is right for you, take a look at how it measures up against similar cards for bad credit scores on the market.
Prosper® Card vs. Milestone® Mastercard®
The Prosper® Card and the Milestone® Mastercard® are both unsecured credit cards for people with less-than-perfect credit. However, the Milestone® Mastercard® has several disadvantages compared with the Prosper® Card:
- It has a higher annual fee ($35–$99).
- It charges cash advance fees.
- There are fees for returned payments.
- It has a penalty APR.
- The initial credit limit is lower at only $300.
Although the Milestone® Mastercard® sometimes offers a lower APR than the Prosper® Card (at 23.9%) and has a slightly lower cash advance APR at 29.9%, the Prosper® Card is still the better choice of unsecured credit card.
Prosper® Card vs. Destiny Mastercard®
Both the Destiny Mastercard® and the Prosper® Card are unsecured cards designed for people who want to improve their credit. However, the Destiny Mastercard® doesn’t give you as good a deal as the Prosper® Card.
First, the annual fee for the Destiny Mastercard® is an expensive $59–$99. It’s also likely that the Destiny Mastercard® will offer you a lower credit limit of $300–$500 with no possibility of an increase.
Finally, the Destiny Mastercard® charges fees for cash advances after the first year. That said, the cash advance APR on the Destiny Mastercard® is marginally lower at 29.9% (vs. 30.74%).
All in all, besides the high cash advance APR and the potentially high purchase APR (of up to 30.74%, depending on your creditworthiness), the Prosper® Card is a better choice than the Destiny Mastercard®.
Prosper® Card vs. Discover it® Secured Credit Card
If you’re trying to build credit and can afford a security deposit, you might consider the Discover it® Secured credit card as an alternative to the Prosper® card. Both cards are suitable for bad credit, but the Discover it® Secured credit card is, as the name suggests, secured and requires a deposit paid upfront.
In addition to the deposit requirement for the Discover it® Secured card, and the fact that the initial credit limit it gives you depends on how much you pay for your security deposit, the major disadvantage of the Discover it® Secured card is that it has cash advance fees, whereas the Prosper® card doesn’t.
On the other hand, the Discover it® Secured card has several important advantages compared with the Prosper® card:
- It guarantees credit reporting to the three major credit bureaus.
- It allows balance transfers and even gives you an intro APR offer for balance transfers.
- It never has annual fees.
- It offers cashback rewards.
- It gives cardholders free FICO scores.
The major appeal of the Prosper® Card is that, compared with the Discover it® Secured credit card, you’ll pay less money upfront. However, in the long term, you’ll get your deposit back for the Discover it® Secured card, and earn cashback rewards, making it a more lucrative prospect overall.