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3. Prosper® Card review: An unsecured credit-building card with a high APR

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506

reviews

3.5

Rating: 3.5 out of 5.

Great for automatic payments

Annual Fee: $0 intro with auto pay, then $59 after first year

This content is curated by Intuit Credit Karma’s Editorial team using data from members who were approved for this card or similar cards, or who self-matched this card or similar cards. Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse this content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Here’s the average credit limit of members who matched their Prosper® Card or similar cards.

% of members by credit limit range

The average credit limit for members who have matched with this card or similar cards is $1,253, with $300 being the most common.

Here’s the average credit score of members who matched their Prosper® Card or similar cards.

% of members by credit score range

The average credit score for members who have matched with this card or similar cards is 591, with 572 being the most common. Note this is just one of the deciding factors when it comes to getting approved.

Member stats

Updated daily

55.6%

Average credit utilization (or what percent of the card’s credit limit is being used) of members who matched with this card or similar cards.

48 years

Average age of members who matched this card or similar cards.

$79,754

Average annual income of members who matched this card or similar cards. Note: Income may be estimated for some members by Credit Karma and may differ from members’ actual incomes.

Pros and cons

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No security deposit required

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No annual fee the first year if you set up automatic payments

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Applying won’t affect your credit scores

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High purchase APR

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Potentially low credit limit

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No rewards or extras

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Prosper® Card review

Updated September 27, 2024

This date may not reflect recent changes in individual terms.

Written by: Sean McQuay

What you need to know about the Prosper® Card

The Prosper® Card is a no-frills card is designed for people who want to build or rebuild their credit. Here are some things to consider if you’re thinking about applying for this card.

No security deposit required

While some credit-builder cards are secured cards that require you to deposit cash to get started, the Prosper® Card doesn’t require a security deposit. Getting an unsecured card can be a huge plus if you’re struggling to build some savings as you work on your credit.

Ability to avoid an annual fee in the first year

If you enroll in the card’s autopay feature, Prosper will waive your first year’s annual fee (this may also help you avoid any late fees since it can eliminate the risk of forgetting and missing a payment).

But keep in mind that this perk is only for the first year you have the card. After that you’ll be on the hook for the full annual fee: $0 intro with auto pay, then $59 after first year.

Applying won’t affect your credit score

You can see if you qualify for the Prosper® Card and what your estimated interest rate and credit line might be without affecting your credit scores.

Just keep in mind that if you do proceed with the application, Prosper says it may reach out to a credit-reporting agency to evaluate your application. And if you’re approved, Prosper may report your new account — both of these factors could affect your credit scores.

Automatic credit limit increase reviews

With this card, your credit limit could be as low as $500. But Prosper will automatically check to see if your account qualifies for a credit limit increase.

This could be a great card benefit because increases in your credit limit can lower your credit utilization ratio, which can help improve your credit scores.

And if you qualify, you may be able to get a credit limit as high as $3,000.

High purchase APR and cash advance APR

The Prosper® Card has a variable purchase APR of 23.24% - 34.74%. This is on the high side, so to help keep your debt in check as you build credit, it’s a good idea to pay your balance in full every statement cycle.

While the Prosper® Card advertises no ATM fees when you withdraw cash from ATMs, that doesn’t mean that cash withdrawals are free. It’s important to note that Prosper will charge a variable 34.74% interest rate on any cash advance withdrawals — and you could be charged a fee by a third party associated with the ATM. This interest will begin accruing immediately, unlike interest charges for purchases.

What else you need to know

If you’re still considering the Prosper® Card, here are a few more things to know.

• Use the card immediately after approval. Once you’re approved you can get immediate access to your new card by adding a digital card to your Apple Pay or Google Pay wallets.
• Watch out for late fees. The Prosper® Card has a late payment penalty fee of up to $40, which can add up if you don’t stay on top of your due dates.
• Expect to pay fees overseas. If you use this card while traveling internationally, you’ll have to pay a foreign transaction fee of 1% of transaction amount on all purchases.

Who this card is good for

The Prosper® Card might work for people who have a solid plan to use the card to build credit, and to avoid interest charges by paying any balance on time and in full every month. You can apply for this card without affecting your credit scores, and qualifying doesn’t require any cash deposit like a secured card does.

Assuming your situation checks all those boxes, this card might be an especially good fit for if your credit might not be strong enough to qualify for other unsecured cards.

But, again, the APRs are high — so carrying a balance on this card will hurt. Even if your credit is rough, consider shopping around for other credit-building options.

Not sure this is the card for you? Consider these alternatives.

Here are a few other cards to consider if the Prosper® Card isn’t for you.

• Petal® 1 Visa® Credit Card: This card might be helpful if you want to earn cash back while establishing credit.
• Milestone® Mastercard® Cashback Rewards: If you’re looking for an entry-level card that earns a flat cash back rate, this card could be a good fit.