Prosper Credit Card 2022 Review

This prosper card MasterCard is the latest of those so it is by and large targeting people that have a bad credit history that have had some credit problems they say it is also for people that are establishing credit but when you look at the details i would say if you are new to credit

This is not a card that i would probably start with however if you've had some credit problems in the past you might find this one interesting and in particular if you really are you know sensitive to how many hard inquiries you are getting on new credit accounts

The fact that they are promising a soft inquiry on your application is something that it might appeal to you there's a little murkiness in the details on that soft inquiry and we'll talk about that as we go along

But let's look at the details overall all right so let's start with the basics the prospect as i've said is a mastercard it has a 39 annual fee but that is waived for the first year so no annual fee first year as long as you sign up for auto pay meaning you are allowing prosper to pull your credit card payments straight out of your bank account in terms of rewards and bonus none of that kind of stuff

This is a no frills card like i said for people with a bad credit history or people that might have no credit credit track record so you're not getting any of the goodies with this card in terms of credit limits could be as low

As five hundred dollars could be as high as three thousand dollars when you are approved for the card they say that they will look at your account for a potential credit limit increase every three months so if you start out at only 500 bucks but you're making your payments on time over those first few months potentially that would go higher as quickly as three months after getting the card now it appears that three thousand dollars is the high water mark

So they're not going to ever take you beyond three thousand dollars from what i can tell but if you start out at five hundred dollars that's a long way to go if you start out at three thousand dollars as your credit limit well it doesn't look

Like it's going to get any higher in terms of the everyday interest rate could be as low as 23.99 which is not particularly low could be as high as 29.99 so no matter how you slice it you're not gonna have a great interest rate

So you're not going to want to carry a balance from month to month on this card or any other credit card for that matter but this one especially because you've got some pretty bad interest rates foreign transaction fees only one percent

So if you use the card outside of the united states you get a one percent fee on those transactions which is better than a lot of other cards on the market that oftentimes are going to charge you three percent but not as good as no foreign transaction fee obviously prosper is also talking about the fact that they do not have cash advance fees on

This card which to be honest with you is not really a great selling point because it almost encourages you to take out a cash advance and the downside to the cash advance beyond the fact that you're taking out cash that you don't actually have in your bank account is the fact that you still are going to start getting charged interest immediately

When you take out a cash advance and it's going to be at the 29.99 interest rate so still a bad idea for other details you might want to know you can choose your payment date so if a certain time of month is better for you to make a credit card payment you can choose that date

It will be the same every month or at least close to the same every month this card offers the potential for instant approval and the potential to actually use some or all of your credit line immediately now you're not going to have the card in your hands so that means you can use it digitally meaning you can use it for online purchases or through the prosper app now prosper itself is not a bank it's a financial platform but it actually works with banks for its uh lending that

It does and in this case for the credit card is coastal community bank which is a bank that works with a lot of sort of fintech companies out there like x1 the greenwood banking platform and there are others as well all right let's talk about that idea of the soft pull or soft inquiry on your credit report

When you apply for the prosper card in multiple places on their website they say you can apply without a ding to your credit score they even say somewhere along the line that if you have a bad credit history why not give it a shot why not apply and see

If they would approve you or not because it's not going to hurt your credit score so as far as i can tell there is not going to be a hard inquiry at any point on your credit card application the only time your credit score would be impacted in a negative way is if you are actually approved

Now this is how i think it works they could be a lot more clear if you open a new credit account you're always going to have that show up on your credit report and in the short term it's always going to ding your score a little bit

But if you're someone that is looking for credit you want to be approved you want that new credit card account but anyway what they are doing essentially with this card is they're doing a pre-approval so when they say we will you know allow you to apply and there won't be any ding to your credit score

They're doing a pre-approval they are going to look at your credit history do the soft pull and if they know they're not going to give you the card they'll tell you no you're not going to get it and you won't have any worry about a hard inquiry but they might also tell

You that you are going to be approved and that you are going to have this interest rate you're going to have this credit limit but they're still going to tell you right there on that form that this is a pre-approval and that is not guaranteed even at that point so as far as i can tell you're not going to get the hard inquiry

If you say well yes i want the card even if they then look at your credit report and for some other reason they decide well we pre-approved you but now we're not going to give you the card so it appears that you're not going to get a hard inquiry but there's

Nowhere on their website where they are 100 clear that there's no way you're ever going to get a hard inquiry they are clear that you are going to get the new credit account if you are approved and that's going to you know hurt your credit a little bit in the short term

But should help it in the long term as long as you make your payments on time but they're a little not wishy-washy on the inquiries they just don't really talk about it but my guess or my sense from what they're saying is the fact that you're not going to have an inquiry that is hard and is going to hurt your credit score in any way even if you are rejected that's the best

I can do all right i did not want to belabor that point but i know everyone wants to know about the soft poll especially if you have had some credit problems in the past now i went through the pre-approval process myself my credit score is over 800

So i assumed i would get the best of what they are offering in their terms and conditions and i got close but not the very best they showed me a 2 800 starting credit limit and a 24.49 interest rate all right one final thought and then

We will summarize whether this card is any good and who it is any good for when a new card comes on the market oftentimes they are going to put a little grid on their website where they compare their card to a couple competitor cards on some of the key features

When you see that grid often times you can see where that card is probably competing in the credit card space in this instance with the prosper card they are comparing themselves to the capital one platinum card and the merrick bank secured card

So you can kind of see where they are playing in that sort of bad credit space maybe in the establishing credit space the capital one platinum card is a bare bones card it's unsecured it has no annual fee but it's got a high interest rate it has no rewards

It is pretty much the lowest of the unsecured cards in terms of credit score out there from any of the major credit card issuers in the merrick bank secured card really they could have used almost any secured card here as far as i am concerned you have to put a security deposit down in order to get the card

So they are basically comparing themselves to cards for people that don't have a credit history or don't have a very good credit history so that tells you something all right so should you consider the prosper card if you are new to credit

I would say no this is a card that you probably could do better than out there on the market even without a credit history you could potentially go to capital one and maybe get one of their sort of starter cards even without a credit history

You could go to discover potentially and maybe be approved for one of theirs both of those issuers have pre-approval forms on their websites where you could try to see what you could qualify for and you would probably qualify for something better than what this card is offering probably without an annual fee

So you don't need to start at this level now if you go to you know multiple cards there's a pedal card out there that is sort of uh serving new to credit customers you could try that as well if you go to these places and you can't get approved maybe you would consider this card as a place that you would go next but in reality there are better options for you usually

If you are new to credit now if you have a bad credit history this card maybe is something that you would look at because it is not great but it's not bad and there's a sort of a whole level of bad credit cards out there that are bad that charge much higher fees than this have even higher interest rates than this card has

So you don't really want to deal with those cards this card is sort of a step above that which is why they're comparing themselves maybe to the capital one platinum and to that merrick bank a secured card i tend to think of merrick bank as being like maybe a little bit better than some of the other bad credit issuers out there so maybe you would look at this card depends

I still probably would look at capital one first still maybe look at discover first depending on where my credit score was and see

If i could get pre-approved there if i was rebuilding my credit but depending on what your history is with those issuers or your history overall this is another option out there that potentially could help you build your credit you'd get a year without having to pay an annual fee

If you do the auto pay and who knows maybe hold it for a year and that would help you build your credit to a point where you would get approved elsewhere and they could get rid of this card without ever paying that annual fee so it's not a bad card if you are someone that is rebuilding credit and

I could see why some people would find it interesting and now if you're someone who's rebuilding your credit the final question might be how low will prosper card go when it comes to credit scores the fact that prosperous comparing themselves to the capital one platinum leads me to believe that

They are probably looking for people in the sort of same area where the capital one card would approve you which means they are not looking for the lowest of the low like some of those fee harvester cards out

There that are going to charge you an arm and a leg and they're going to have all kinds of crazy extra fees and they're going to give you almost no credit line and they're going to have interest rates over 30 percent that is not where the prosper card is playing which means they are probably not playing with the lowest credit scores out there

So my guess would be if you're over a 600 credit score you could probably get approved here if you're between 550 and 600 maybe a little murkier or maybe you would get approved with that very lowest credit limit but every three months you'd have that possibility of it going up when they looked at your account again under 550

I would think that you are getting into an area that is probably a little less likely that you're going to get approved for this card and in that case, i would tell you that you probably should go for a secured credit card instead of going for any of those fee harvester cards yes you have to put a security deposit down

If you are in that situation but you can get a card from a major credit card issuer instead of dealing with some of these small companies that are only there trying to get as much of your money as they can

If you go with one of these larger credit card issuers you have the possibility of being graduated to an unsecured card over time and then you have a good credit card with a major Credit Card Company.

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