What Is A Subprime Loan? - CREDIT INFORMATION
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CREDIT INFORMATION: What is a subprime loan?
A subprime loan is the extension of credit to a person with a damaged credit history who is considered to be a high risk borrower. Subprime loans have higher—sometimes much higher—than average interest rates. Subprime lenders reduce their risk in making loans by charging borrowers a higher interest rate and sometimes additional fees.
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