Lenders set their own criteria, and a prime-only program declines everyone below its line. LendPro is not a lender; lenders make all credit decisions and set all terms.
Key takeaways
- A prime lender finances shoppers with strong credit, usually at the lowest rates and often with promotional terms set by the lender.
- Each prime lender sets its own credit criteria, and CFPB score bands are a guide rather than any lender's cutoff.
- Prime-only programs decline shoppers below their line, so many retailers add near-prime and No Credit Needed options behind their prime lender.
- A prime approval can come in below the ticket, so the shopper may need another offer, a down payment or a new application.
What is a prime lender in plain English?
"Prime" describes the borrower, not the bank. A prime lender looks for an established credit history, on-time payments and a score in its target range. In return, it offers lower APRs, larger approval amounts and promotional terms set by the lender. Advertising specific promotional terms can require disclosures, so use the lender's approved wording. Shoppers who fall short are declined or offered less, which is where second-look financing comes in.
What does a prime offer look like?
| Prime offer type | How it works | What the associate tells the shopper |
|---|---|---|
| Installment loan | Fixed payments over a term set by the lender | The monthly payment, term and APR the lender discloses |
| Revolving card | A reusable credit line, often store branded | Unused credit stays available as open-to-buy for later purchases |
| Promotional plan | Promotional terms set by the lender, such as a special rate or deferred interest | What happens if the balance is not paid by the end of the promotion |
On credit scores, the CFPB groups 660 to 719 as prime and 720 and above as super-prime. Treat those bands as a guide; each prime lender sets its own cutoff, and many weigh history and debt load alongside the score.
Source: CFPB credit tiers based on FICO Score 8, Consumer Credit Trends: borrower risk profiles. Each lender sets its own criteria; these bands are not any lender's cutoff.
What does it look like at the store?
A couple is buying a $3,200 refrigerator and range at an appliance store.
- They choose See If You Pre-Qualify on a tablet. Where the provider supports pre-qualification, it uses a soft pull and won't affect credit scores. A lender may run a hard inquiry if the shopper accepts an offer.
- The prime lender returns a pre-qualified offer that includes a promotional plan, subject to the lender's final approval.
- They select it and complete the lender's full application. The lender discloses the terms and makes the final decision.
- The store finalizes the sale. The associate creates the invoice in LendPro, the shopper e-signs in store or by text or email link, and settlement is processed when the customer receives the goods or service.
Illustrative example. Dollar amounts are for explanation only; actual approvals, amounts and terms are set by each lender.
We will walk through your lenders, tiers and entry points in a live demo.
How does LendPro handle it?
LendPro's prime tier is made up of bank and card programs; see how the tiers work in waterfall financing. Amounts, terms and promotional plans vary by lender. The retailer chooses which prime lenders it wants in its lineup and can keep its current prime lender first in the traditional waterfall setting. LendPro uses a financing flow configured for each location based on the lenders assigned to that location and the requirements of those programs. Contact LendPro to review configuration changes.
What should retailers watch with prime lenders?
- Prime-only programs leave gaps. Shoppers below the line need a next step, such as near prime or No Credit Needed.
- Explain promotional terms. Deferred interest can be charged back if the balance is not paid in time. Lenders set promotional terms and required disclosures.
- Know the merchant fee. Promotional plans usually cost the retailer more than standard terms. Ask each prime lender for its fee schedule.
- Watch approval amounts. A prime approval smaller than the ticket can stall the sale even though the shopper "got approved."
Frequently asked questions
What credit score does a prime lender require?
Each lender sets its own criteria. The CFPB groups 660 to 719 as prime and 720 and above as super-prime, but those bands are a guide, not a lender's cutoff.
Why do retailers put a prime lender first?
Prime offers usually cost the shopper least, so qualified shoppers see the lowest-cost terms before other options.
What happens if a prime lender declines?
In the default setting, offers from other lenders may still show. In the traditional waterfall setting, the application moves to the next tier, usually near prime.
Do prime lenders approve the full ticket?
Not always. A prime approval can come in below the ticket. The shopper can choose another offer, go to No Credit Needed options, add a down payment, or start a new application for a higher amount.
Can a retailer advertise a prime lender's promotional plan?
Yes, using the lender's approved wording. Advertising specific promotional terms or a monthly payment can require disclosures, and the lender sets the terms.