As an online lending platform, Prosper matches borrowers with investors that can fulfill their borrowing needs. In addition to personal loans, the lenders in its network offer home equity loans and credit cards. Prosper has serviced over 1.4 million customers nationwide since its inception in 2005.

TD Bank is one of the nation’s 10 largest banks, servicing more than 9.8 million customers in select states throughout the Northeast and mid-Atlantic areas, along with the Carolinas, Florida and Washington, D.C. In addition to its wide variety of banking services, it also offers personal loans with generally competitive terms.

Although 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 them before applying for a loan.

TD Bank vs. Prosper at a glance

Loans offered through TD Bank and Prosper are quite similar, but they cater to different credit profiles.

TD Bank Prosper
Bankrate 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%
Loan term lengths 36-60 months 24-60 months
  • Late payment fee of $10 or 5% of the amount due, whichever is less
  • Document stamp fee (Florida residents only)
  • Origination fee of 1% to 7.99%
  • Late payment fee of 5% of the amount due or $15 (whichever is greater)
  • Insufficient funds fee of $15
  • Check processing fee of $5 or 5% of your payment amount (whichever is greater)
Minimum credit score 700 640
Time to funding Next day after approval Next day after approval

TD Bank personal loans

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  • Low maximum APR.
  • Autopay discount available.
  • Few fees.
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  • Not available in every state.
  • Good to excellent credit required.
  • Limited repayment options.

The TD Fit Loan, which is TD Bank’s personal loan product, offers flexible loan amounts of up to $50,000. Its loans can be used for a variety of purposes, including financing a major purchase, home improvement projects and expensive car repairs. Taking into account the lender’s few fees, competitive starting APR and autopay discount, a personal loan from TD Bank can be ideal if you qualify.

The only two major drawbacks to keep in mind are that TD Bank’s loans require borrowers to have good to excellent credit and that the lender doesn’t service every state.

Prosper personal loans

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  • Next-day funding.
  • Low starting APR.
  • Joint applications allowed.
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  • High maximum interest rate.
  • Multiple fees.
  • No autopay discount.

Prosper offers borrowers a unique lending model that’s more flexible compared to traditional lenders. Its loans have a relatively low credit score requirement, and Prosper currently has one of the lowest starting APRs on the market at 6.99 percent.

That said, Prosper charges an origination fee that can be up to 7.99 percent of your total loan amount. In addition, it has a high interest rate cap of 35.99 percent. If you have a lower credit score, you will likely get a higher rate. However, since Prosper offers a co-borrowing option, you might be able to qualify for a lower rate if you apply with someone who has a higher credit score.

How to choose between TD Bank and Prosper

If you compare TD Bank and Prosper, their loan offerings are nearly identical when it comes to loan amounts, repayment terms and funding. But they differ greatly in terms of overall cost and eligibility requirements. Choose TD Bank if you have a higher credit score and live in its serviced region. Otherwise, Prosper will be 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 fewer fees than Prosper on top of a lower APR cap and a 0.25 percent rate discount for enrolling in autopay.

If you have good or excellent credit, TD Bank’s loans could be a good fit. And even if you don’t qualify for the lowest APR, you may still be able to qualify for a more affordable loan than with Prosper.

Prosper 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 a better fit 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 that’s relatively low cost.

Compare lenders before applying

TD Bank and Prosper are great options to consider if you’re thinking about getting a small or midsize personal loan. If you have good or excellent credit, TD Bank should be your first choice as you could avoid paying origination fees, which can add up to the overall cost of your loan.

If you have fair credit, then Prosper’s loans may be a better fit. It offers more flexibility when it comes to eligibility requirements, plus you can add a co-borrower to your application. That said, if your credit score is on the lower end of the 600s and you don’t have a creditworthy co-borrower, you may end up with a hefty interest rate.

In the end, the best personal loan for you will depend on your financial situation, so compare rates from multiple lenders before coming to a final decision.