Help I’m a “Subprime” Borrower
Many lenders will use terminology that seems foreign to the rest of us. For example, what exactly does it mean when a lender refers to you as “subprime”?
Basically, when a lender refers to you as “subprime”, he or she is actually saying that your credit history is flawed. In other words, you may have outstanding loans, credit card debt, or have been late on some of your bills. Nowadays, most people have less than perfect credit. So, don’t beat yourself up.
As a “subprime” borrower, be aware that you will likely be charged higher interest fees for any line of credit. Whether you’re applying for a credit card, personal loan, payday advance, or auto loan- higher interest rates will apply.
To avoid paying higher fees, the best thing to do is pay off your credit cards, repay any outstanding loans, and minimize any additional debt. Also, it’s a good idea to create a savings account and add to it each paycheck. That way, instead of financing big purchases, you may be able to pay cash- saving you a lot of money in the long run.
Tags: bad credit loan, cash advance, payday advance, payday loan, subprime