|
 |
|
Subprime Borrower |
 |
A subprime borrower is someone whose credit history is less than desirable. A subprime borrower is assumed to be a higher credit risk than someone with average or above average credit and because of this, is usually penalized in some way. Charging subprime borrowers a higher rate of interest than that which is charged those with better credit is the most common type of penalty. Historically, the subprime borrower is more likely to make late credit card payments and has a higher loan default rate, too. Those classified as subprime borrowers should work to rebuild credit as this can improve (and hopefully remove) subprime borrower status.
|
|
Credit Card Definitions > N - Z > Subprime Borrower
|
|
|
 |
|
