What are Subprime loans

Do subprime loans hurt your credit?

Any loan, mortgage, credit card can hurt your credit if you do not meet the obligations as outlined in the contract. A subprime loan, like any loan, can hurt your credit if you miss any payments or default on the debt. But it can also help improve your credit if you make your payments on time

What does it mean when classified a Subprime Borrower or Customer?

A subprime borrower or customer is an person that has a credit rating that is less than good, under 600 for example. Lenders will usually charge subprime borrowers a slightly higher interest rate on loans, because they are viewed as having a greater risk of defaulting. These loans, however are a great way to start rebuilding your credit and proving to lenders that you should no longer be considered high risk.