A borrower who does not meet the qualifications for standard credit and loan offers. Usually a subprime borrower has poor credit (a score under 650) due to late payments, collection accounts or public records. Lenders often grade them based on the severity of past credit problems, with categories ranging from "A-" to "D" or lower. Subprime borrowers can qualify for loans and credit, but usually at a higher interest rate or with special terms.
A borrower with bad credit, no credit bankruptcy or other types of credit problems.
A borrower with a less-than-perfect credit report due to late payments or a default on debt payments. Lenders often grade them based on the severity of past credit problems, with categories ranging from "A-" on down to "D" or lower.
An individual with a less-than-perfect credit rating. Lenders will usually charge subprime borrowers a slightly higher interest rate on loans as they are viewed as having a greater risk of defaulting.
A borrower with a less-than-perfect credit report due to late payments or a default on debt payments. You can be a little bit subprime or a lot, depending on your record of payments. Prime borrowers are often called A borrowers, with subprime going from A- all the way down to D.
A borrower with an substantially flawed credit record.