Archive for the ‘Subprime Finance’ Category

Difference Between Prime and Subprime Auto Finance

Friday, August 20th, 2010

A few years back, lending institutions used to give just one kind of loan for cars – auto finance. However, the recent economic crisis depleted their possible clientele and increased the number of applicants with bad credit score. Therefore, to maintain their leads and sales flow, lending institutions have started providing special finances, also known as subprime auto finance. One might wonder what the difference between subprime and prime is. When the credit score of the applicant is checked, the individuals with a high credit score are put in the prime lending category, whereas the ones with low credit score are put in the subprime category. Read More…