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What is Subprime? March 1, 2011

Posted by CredZoo - Tame Your Credit in New Credit Information.
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Subprime loans. Subprime lending. Subprime mortgage crisis. Subprime credit category.

We hear it all the time. But what exactly is subprime? Technically, it is a classification of borrowers with a tarnished or limited credit history. Lenders will use a credit scoring system to determine which loans a borrower may qualify for. Subprime loans carry more credit risk, and as such, will carry higher interest rates as well. Approximately 25% of mortgage originations are classified as subprime.

If you have a FICO score below 660, you’re typically considered to be in the subprime category.

When you have a subprime credit score, you can probably still find an unsecured credit card. But the average “bad credit” APR is around 24.5 percent. That’s a pretty scary APR. Most experts agree the best way to reduce your APR, and help boost your credit score out of the subprime category is to check & repair your credit. You could try to go it alone, but as we discussed in our Responsibility Of Credit blog there is no manual, no help file and no teacher to show you how to take on the task of correcting or repairing your credit! Without knowing of the resources available to them, most Americans just live with whatever is on their credit report.

CredZoo can help you put an end to your subprime woes!  We are so confident in our ability to help you, that we challenge you to put us to work for you. Nothing is more important to CredZoo Inc than your credit goals. We are all about results! We offer an easy way to get the credit repair process started – Click here to get started today!

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