Prosper: the APSP’s Consumer Financing Program Overview (also known as their Prosper Financing Program)
The APSP (Association of Pool & Spa Professionals) has partnered with Prosper Markeplace, Inc. to sponsor a consumer financing program to provide financing solutions for APSP member customers’ pool, hot tub or home improvement projects. Prosper is an online marketplace lender that provides access to fixed rate, unsecured loans from $2,000 to $35,000 with loan terms of 3 and 5 years. After 12 months on the program, loans increase to $50,000 and 7 year terms. Loan APRs start at 5.99%, but your rate will depend on the loan amount and creditworthiness–you can see your rate without affecting your credit score and, if the rate works for your financial situation, accept the rate and complete your loan request, all online.
Key benefits of this loan include:
- All APSP members can refer their customers
- No cost to APSP members
- Easy online application
- Fixed loan rates
- Loans are unsecured—no collateral required
- 3 or 5 year terms
- Easy fixed monthly payments
- Loan sizes from $2,000 to $35,000
- No prepayment penalties
- No upfront fees—closing fees are taken from the loan proceeds
- November 19, first Training webinar roll out
- Every Wed thereafter
- After 12 months will have funded loans director to member, loans up to 50K and 6-12 month 0% interest.
Prosper Frequently Asked Questions
What is Prosper?
- Prosper is America’s first peer-to-peer lending marketplace, and is a market leader with over $5 billion in funded loans.
- Prosper provides access to a transparent and low-cost alternative to traditional loans – Prosper connects people who need money with investors…so everyone prospers!
- Prosper is headquartered in San Francisco, CA, and was founded in 2006.
What states are open for borrowing on Prosper?
Prosper is available to borrowers in the following states:
- Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin and Wyoming.
- At this time, Prosper is not available to borrowers in the following states: Iowa, Maine, North Dakota, Pennsylvania and Vermont.
How does the application and funding process through Prosper work?
- Borrowers come to the Prosper website, choose their loan amount and fill out an initial application (name, address, birth date, employment status, individual income) to check their eligibility and rate. Checking eligibility and rate does not impact an individual’s credit score.
- They then receive an eligibility decision.
- Qualified applicants receive an offer (e.g., APR, term options and implied monthly payment amount) based on their loan amount and application information.
- Qualified applicants choosing to proceed forward, select an offer (e.g., APR and term).
- Qualified applicants are then asked to provide additional information to finalize their application. Prior to loan origination, a hard credit pull will be made.
- Finalized applications will generate a “listing” – which is a request for a loan. Some borrowers may be subject to additional verification of their application information before their listing is made active.
- Once the listing is active on Prosper, investors will have the opportunity to commit funds to your loan—this period lasts for 14 days, but most listings are funded much faster. In the unlikely event your loan is not funded, no loan will be made.
- If your loan is funded, the funds will be deposited in your bank account—usually in a few days—and you will make monthly payments.
What are the loan amounts and terms available?
- Prosper provides access to fixed rate, unsecured loans from $2,000 to $35,000 with loan terms of 3 and 5 years
- Loan APRs range from 5.99% to 36.00%, depending on loan amount and creditworthiness.
- These loans are offered with no penalty for paying early or making partial pre-payments.
How does a borrower apply for a loan?
Getting a rate is easy and only takes a few minutes. Prosper simply requires the following to check your rate and eligibility:
- First and last name
- Complete home address
- Employment status
- Individual yearly income
- Date of Birth
- Email address
Once qualified, if a borrower accepts an offer, they will be asked to provide some additional information to move their loan to listing stage:
- Employer and contact information
- Social security number
- A bank account
Who is eligible for a loan through Prosper?
A new Prosper borrower must at a minimum be:
- A U.S. citizen and/or legal resident over the age of 18;
- A credit score of at least 640;
- No bankruptcies within the last 12 months
- What is the verification process?
Some borrowers may be required to submit additional documentation or proof of income such as a W-2 or 1099 in order for Prosper to verify their income and eligibility.
How soon do borrowers receive their money?
Loan proceeds should be available 1-3 business days after a borrower’s listing is funded.
Are there any fees?
Yes. Borrowers pay an “origination fee” which is a percentage of the amount borrowed, and varies by creditworthiness. The origination fee is typically between 1% and 5% of the loan amount, and is assessed before the loan is funded into a borrower’s bank account. If borrowers make any payments with paper checks, manual check fees may apply. Prosper also charges special circumstance fee of $15 for failed automatic monthly payments, returned checks, and failed bank drafts. Only one of these fees will be charged per monthly payment period. If a monthly payment is late, the borrower may be charged a late fee.
How do the monthly borrower payments work?
Prosper will make monthly automatic withdrawals via ACH from the borrower’s bank account in the amount of the agreed-upon monthly loan payment or, if the borrower elects, the borrower can make manual payments each month, either by check or one-time ACH transfers.
Can a borrower pay extra on a monthly loan payment?
If the borrower chooses, they may make an optional additional loan payment or pay off their loan early without penalty or fee.
Can borrower’s change their payment due date?
No. Unfortunately, it’s not possible to change a payment due date at this time.
Is Prosper a bank?
Prosper is not a bank. All loans are funded by WebBank, which is a FDIC-Insured, Utah chartered Industrial Bank.
Does Prosper require any collateral for loans?
All loans through Prosper are unsecured- which means collateral is not required. Our customers don’t need to put up their home or car to get a loan. Their credit history is the basis for qualification.
Does checking a rate affect a borrower’s credit score?
No it does not. After entering their basic application information to determine loan eligibility, Prosper conducts a “soft” credit pull to generate an initial offer, which does not affect a borrower’s credit score.
After receiving an offer, if a borrower at that point chooses to accept it and post a loan, at that point Prosper would conduct a hard credit pull which could potentially affect a borrower’s credit score.
As an Ultimate in Pool Care / Chaikin Ultimate Pools customer, you can now finance your new pool or hot tub and get the funds you need with a low interest, fixed-rate personal loan.
Need additional information? Give us a call at (631) 242-2667 or use our convenient Contact Form and touch base with us now!