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what does the term subprime mean?

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Anonymous
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what does the term subprime mean?

This term isn't in the glossory post and haven't been able to decipher it's meaning in coxtent which it is used, to me sounds like intrest rate below the prime lending, but I know that's not correct
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Anonymous
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Re: what does the term subprime mean?

subprime = A rate offered to a person that has a score BELOW prime.
 
 
Message 2 of 5
Anonymous
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Re: what does the term subprime mean?

Subprime is all in the eye of the beholder. It's a relative term, everyone has an opinion about where the prime threshold ends and the descent into subprime abyss begins.
Message 3 of 5
Anonymous
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Re: what does the term subprime mean?

The prime/subprime dividing line can be anywhere between 620 and 660, depending on who's creating the definition. Most of the time, it's usually set at 620 or 630. Oversimplified, a credit card that can be approved for applicants with a FICO score below 620 would be called subprime; a credit card that requires a minimum FICO score of 630 or higher would be called prime. Subprime credit cards typically have annual or monthly fees, low credit limits, and high interest rates. But the definition is a bit murky, and there are a number of credit cards that could be described either way.
Message 4 of 5
Anonymous
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Re: what does the term subprime mean?

Im subprime and almost prime... I think subprime means... your credit sucks and I think it also means that you get to pay more for things too!! Smiley Very Happy


Message Edited by OneMortgageGuy on 07-19-2007 07:50 PM
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