Are Borrowers With Less Than Prime Credit Denied Credit? - CREDIT RIGHTS
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CREDIT RIGHTS: Are borrowers with less than prime credit denied credit?
Not always. Many companies will extend credit to people with poor credit—so-called “subprime” customers—but they will charge them a higher interest rate than people with good credit would pay. Borrowers fall into the subprime category because they made late payments on credit cards or loans, abandoned loans or filed bankruptcy in the past seven years. Many subprime borrowers are low-income individuals, minorities, elderly and/or women. Lenders may also assign this label to people who have little or no credit history, change jobs frequently or move often.
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