When you’re struggling with debt, every potential solution is tempting, but you need to tread carefully.

When it comes to resolving financial challenges, knowledge is key.

That brings us to Proper Funding, a company that helps debtors secure debt consolidation loans. Although it purports to be an honest and effective financial institution, there are red flags you should be aware of.

If you’re struggling with overwhelming debt or looking for a lower interest rate on your debt, this review is for you. By the end of this article, you’ll understand what Proper Funding does, who they serve, and whether they’re right for you.

Even more, you’ll learn about alternatives and how they compare.

So, is Proper Funding debt consolidation legit? Keep reading to find out.

What is debt consolidation?

Debt consolidation is the process of merging multiple debts. It's typically used when someone is having trouble covering the monthly payments on their credit cards and other debts.

By consolidating, debtors can often obtain a lower interest rate and, thus, more manageable payments.

But not just those who are struggling with debt should consider consolidation. Anyone with high-interest debt can leverage this service to save money by reducing their interest rate.

And, reducing the interest rate you're paying can also help you pay off debt faster.

Benefits of debt consolidation

  • Simplify debt management: By reducing multiple existing loans into a single balance, consolidation simplifies a debtor's payments.
  • Lower interest rate: Usually, consolidation leads to a lower interest rate than the average rate of the existing loans and credit cards.
  • Extended payment terms: Some debtors may use consolidation to extend the term of their debt, thereby reducing monthly payments. But remember that a term extension can lead to paying more interest overall in the long run.
  • Timeline: With a debt consolidation program, you’ll have a firm timeline for being debt-free. Having a target date gives debtors something to look forward to. Knowing the end is in sight offers peace of mind.

What is Proper Funding?

Proper Funding works in the debt consolidation space and helps clients obtain loans that can be used to pay off existing debts. Ideally, these loans include a lower interest rate than the borrower's existing debts.

The company is not itself a lender. Despite language that may indicate the contrary, Proper Funding does not provide loans.

As a result, term lengths, APRs, minimum eligibility, and available loan amounts vary widely depending on the lender they ultimately recommended.

In short, Proper Funding is a marketing company, not a debt consolidation company.

Is Proper Funding debt consolidation legit?

Yes, Proper Funding is legitimate, but red flags exist.

The company’s Better Business Bureau profile has an F rating and lacks BBB accreditation. The company’s profile at the BBB also includes a warning to potential customers.

When the BBB contacted Proper Funding for details about the nature of its business, Proper Funding did not respond.

And, although they claim to be based in Michigan, the BBB could find no such business with that name in the state.

As a result, the BBB “urges caution” when considering working with a company like Proper Funding “whose physical location is unknown.”

How does Proper Funding work?

  1. Application: Complete Proper Funding’s simple application form. This step will not impact your credit score.
  2. Assessment: Proper Funding initially evaluates your financial situation. This includes a review of your existing debts, their interest rates, other monthly expenses, and your income.
  3. Consultation: After completing the application and assessment, a representative from Proper Funding will connect with you to discuss their process and answer any questions.
  4. Recommendation: Following the assessment, Proper Funding will refer you to a suitable lender.
  5. Consolidation: At this stage, you’ll work directly with the recommended lender to consolidate your debt. A new loan equal to the amount of your eligible outstanding debt will be provided. The new loan proceeds will be used to pay off existing debts, leaving you with one monthly obligation.
  6. Management: Maintain timely payments of the new debt obligation. Periodically review your repayment plan progress to ensure you’re staying on track.
  7. Celebration: Consolidation provides a clear path to tackling debt. As a result, you know exactly when your debt will be cleared. Once the final payment is delivered, congratulate yourself. The debt is gone; it’s time to celebrate.

Proper Funding alternatives

If Proper Funding’s red flags make you uneasy, worry not. Numerous debt consolidation alternatives exist.

Here are the top choices based on APR, term options, loan amounts, customer feedback, and unique benefits.

Best Egg

Best Egg offers consolidation loans of up to five years, low minimum credit score requirements, and no application fee. The best part? They provide rapid funding so you can access your cash quickly.

Exceptional client reviews.Higher credit scores are needed to obtain the very best rates.
Funding in as little as 24 hours.
  • Estimated APR: 8.99% - 35.99%
  • Eligibility: minimum credit score of 600
  • Term length: 3-5 years
  • BBB accreditation: A+
  • BBB customer reviews: 4.86 out of 5 based on 2,308 reviews.
  • Available loan amount: $2,000 to $50,000
  • Application fee: $0
  • Best for: Debtors with poor credit looking to consolidate multiple loans quickly.


Clients of SoFi benefit from their flexible repayment terms, excellent customer service, and $0 application fee. SoFi clients also gain access to career counseling and unemployment protection, unique benefits that set them apart from other lenders.

Rate discounts for clients who signup for autopay.Poor customer reviews on BBB.
A mobile app that allows you to manage your loan.
Unique services, like career counseling
  • Estimated APR: 8.99% - 20.15%
  • Eligibility: minimum credit score of 680
  • Term length: 2 years
  • BBB accreditation: A+
  • BBB customer reviews: 1.27 out of 5 based on 2,308 reviews.
  • Available loan amount: $5,000 to $100,000
  • Application fee: $0
  • Best for: Debtors with good- and excellent- credit ratings seeking a competitive APR.


LendingClub is an excellent choice for debtors who want a simple, flexible, and transparent lender that offers loans as low as $1,000.

Ability to pre-qualify for a loan using a soft credit check ensures your score isn’t impacted.No mobile app.
Fast funding.Charges an origination fee.
Flexible: the option to change your payment date.
  • Estimated APR: 9.57% to 35.99%
  • Eligibility: Minimum credit score of 600
  • Term length: 3-5 years
  • BBB accreditation: A
  • BBB customer reviews: 4.56 out of 5 based on 2,484 reviews.
  • Available loan amount: $1,000 to $40,000
  • Application fee: 3.00% to 8.00% of the loan amount
  • Best for: Debtors who want to work with a flexible lender with a stellar reputation.