A loan offered to an individual who does not qualify for a loan at the prime rate due to their credit history. If a lender thinks that there is an above-average risk involved in giving a loan to a certain individual, they will sometimes offer them a subprime loan, which has an interest rate higher than the prime rate. The subprime rate offered by the lender can vary from institution to institution.
Related information about subprime loan:
- Subprime Loan Definition | Investopedia
A type of loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. Quite often, subprime borrowers are often turned away ...
- Subprime lending - Wikipedia, the free encyclopedia
In finance, subprime lending (also referred to as near-prime, non-prime, and second-chance lending) means making loans to people who may have difficulty ...
- FHEO - Subprime Lending - HUD
Studies reveal that even in upper-income African-American neighborhoods one is one-and-a-half times as likely to have a subprime loan than persons in ...
- Subprime Loan - Financial Dictionary - The Free Dictionary
A loan that is made at a higher interest rate than most other loans. Subprime loans are made to borrowers who do not qualify for ordinary loans because of bad ...
- The Subprime Loan Machine - New York Times
Mar 23, 2007 ... A little-noticed tool of automated underwriting software helped fuel the recent subprime mortgage boom.
- Haunted by 619? Get a subprime loan (Page 1 of 2)
If your credit score falls below 620 you can still borrow money. You'll just have to pay a little more.
- HowStuffWorks "How Subprime Mortgages Work"
However, during the housing boom, many who could have qualified for a traditional home loan instead took out a subprime loan, partly due to aggressive ...
- What is a Subprime Loan?
A subprime loan is a high interest loan given to a person with a bad credit history. When looking for a subprime loan, it's...