What is a Subprime Loan?
Higher Rates
When we talk about subprime loans they are synonymous with higher interest rates. The reason for this is that the lender views you as a higher credit risk than someone with no blemishes. It doesn't matter that the issue with your credit may have happened because of circumstances beyond your control.
Getting Back on Track
The higher interest rates are the price we pay when we have gotten behind in our bills or otherwise had trouble making our payments on time. The good news is that as you make your payments on time, and do not cause any reason for a lender to add a new blemish, your credit score will rise and eventually move you away from subprime into the regular rates that others enjoy.
