Sub-prime Borrower

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • sub-prime lending
  • non-prime borrower
  • near-prime borrower

Definition of Sub-prime Borrower

  1. A borrower with a less-than-perfect credit report due to late payments or a default on debt payments.

Related Terms and Acronyms

  • Default Definition,
    • When a borrower fails to fulfill the obligations of a loan or lease.
  • Prime Rate Definition,
    • The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.
  • Borrower Definition,
    • A person who borrows money or obtains a loan.
  • Borrow Definition,
    • Sand, gravel or other material used for grading; a slope.
    • To get a loan of money.
  • Sub-prime Mortgage Definition, Important,
    • A mortgage loan that is granted to a borrower who is considered sub-prime (has a less-than-perfect credit report). Sub-prime borrowers have either missed payments on a debt or have made late payments. Lenders charge a higher interest rate to compensate for potential losses from customers who may default on the loan.
  • Credit Report (CR) Acronym, Very Important,
    • A report on a loan applicant's willingness and ability to make payments in a timely manner in the past. This report is provided to the bank by an outside agency.
    A report that outlines the credit worthiness of an individual or entity.
  • Guaranty Definition,
    • A promise to assume responsibility for a debt if the borrower defaults.
  • Bad Credit Definition,
    • Someone who carries a higher credit risk.
  • Delinquent Mortgage Definition, Important,
    • A mortgage loan where the borrower fails to make payments as specified in the loan agreement.
  • Credit Rating (CR) Acronym, Very Important,
    • A judgement of a person's ability to repay debts. The rating is often based on a person's current and projected income and past debt payment history. Also called a credit score.
    A metric to measure the credit worthiness of a debtor.
  • Experian (XP) Company, Canada,
    • One of the Big Three credit bureaus, along with Equifax and Trans Union, Experian not normally used in Canada.
  • Prime Lending Rate (PLR) Acronym, Very Important,
    • The rate of interest charged on loans by chartered banks to their most creditworthy customers.
    Bank of Canada's prime (best) lending rate.
  • Bad Credit Loan Definition,
    • A loan taken out by someone with bad credit.
  • Predatory Lending (PL) Acronym, Important,
    • Lending practices that are unfair, deceptive or fraudulent.
  • Equifax (EF) Company Est. 1899, Canada, Important,
    • A major credit bureau company in Canada along with Trans Union.
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