As the two largest peer to peer lending platforms in the United States, Lending Club and Prosper are the preferred choices for investors. In this post we will look at the pros and cons of each platform and try to determine which is better for investors.
Prosper was started in 2006 while Lending Club came on the scene in 2007 so they both have about the same amount of time in the industry.
Because Lending Club is publicly traded it is available in all U.S. states. Proper is not available to investors in all states.
Although Prosper had posted higher returns in the earlier years, Lending Club has matched them more recently. Lending Club has made significant changes to their grading and underwriting policies in both 2016 and 2019. These changes have resulted in a more lucrative environment for investors.
Both platforms require a minimum of $25 invested in a loan. Prosper has a lower account minimum.
Both platforms offer automated investing so this can be a passive income source and easy to manage.
Lending Club has issued over three times as much in loans so it is considerably larger.
Both platforms have a minimum of $1,000 to open an account.
