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Teletrack Payday Loan Glossary
What is Sub-prime lending by No Teletrack Loans
Sub-prime describes a specific lending market sector. Typically, sub-prime products (e.g., loans, mortgages, or credit cards) are for persons with blemished or limited credit history - those who do not qualify for the prime rate market. These products usually carry a higher rate of interest than prime products to compensate for increased credit risk. Sub-prime lending is typically a 2 year fixed and a 28-48 year adjustable. There are occasionally options to 'fix' a sub-prime rate, but it is an adjustment to the rate that makes it not worthwhile. Sub-prime lending can be lenient on Bankruptcies and Foreclosures, though it is usually requires one year from forclosure.
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