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1.5

After many months of trying to make extra payments- I finally figured out how Prosper works.

Because they don't want you to pay off your loan early, they make it quite difficult.

If you make an "extra payment" on a random day, Prosper only applies that to your next months auto pay.

I.E. If your monthly payment is $200 on the 15th, and you (try to) make an additional payment on the 16th- now your next auto pay is $0

So if you're trying to pay your loan off early, here's how:

Make an additional payment on the 15th, and this goes to principal only. BUT good luck if you try this manually. Their website has convenient glitches on your payment days and is miraculously fixed the next day (and they knew of no website problems of course).

SO SET UP AUTOMATIC EXTRA PAYMENTS ON THE PAYMENT DUE DATE.

Prosper sucks for this reason and I am paying it off as fast as I can...now that I know how

Reason of review: Problems with payment.

Location: Riverside, California

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Guest

From what my take on Prosper payments is they have no "principal only/reg payment/interest only" option even available so when you make a payment they're just "regular" (accumulated interest, which i think is compounded daily, and remainder goes to principal). So the reason the second payment on payment day would all go to principle is because the other (prior) payment already paid the accumulated interest.

If they were good for the borrowers, they should provide: 1)anoption as to what the money goes to, specifically as at least "normal payment" or "principal" - with principle payments having no bearing on next payment amount/due date (if balance isn't reduced so much as to have the remaining balance below regular payment amount) so a huge payment only reduces principle and your scheduled payments are still there unaffected; and 2) a payment as regular payment would be just an regular payment paid earlier-a huge payment making your next payment due a long time from now until it's used up.

So I don't think it's a scam, just that they compound interest daily, and don't offer principle-only payments.

Zea Hqd

I made an extra payment to Prosper. Then they did not take the auto payment the following month.

Then they reported me late to the Credit Bureaus.

Plummeted my Credit Score 85-115 points. When I contacted them, they would not even acknowledge what they did.

Guest

I literally just googled the search-term "prosper complaint additional payment to interest?" and found this entry on pissedConsumer. I spoke to Prosper about this exact issue 5 minutes ago.

I sent an extra $100 on the 20th, AFTER my auto-payment on the 6th. Of that $100, $6 went to the principal, $94 went to the interest!! The agent had me on-hold for 10mins to ask his supervisor & was uncomfortable trying to sell me on this policy. I'm not surprised to hear of "glitches" on the Prosper site when trying to make an extra payment.

I find many credit-cards won't allow two payments too-close together.

Too-bad the CFPB is a toothless, useless political tool or I'd report Prosper. Anyway, I suppose I could use my bank's bill-pay option, but won't Prosper most-likely just (intentionally) process it late?

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