The Costs of Being a subprime borrower

Equifax, one of the nation’s largest credit reporting firms, defines a “subprime borrower” as a borrower with a credit score below 640 on the FICO credit scoring “scale.” bit.ly/3Oxuo48

(The FICO scoring scale has a maximum score of 850 and starts at a score of 300. That’s right, your score cannot be lower than 300.)

Subprime loans tend to have higher interest rates and larger down payment requirements than conventional or “prime loans.”

It is incredibly difficult for subprime borrowers to obtain a loan for a home, but it is easier for that group of borrowers to obtain a loan for purchasing consumer products like an automobile or a boat.

Sure, you are getting the loan that you want (unless you’re shopping for a house), but what is it costing you? Lenders who are making loans to customers with lower credit scores know that they are taking a greater risk that those borrowers may not be able to successfully pay back those loans. Accordingly, the interests rates they charge on those loans is much higher than the interest rates they charge on the people they consider to be “prime” customers.

Stop paying the costs of being a Subprime Borrower

Subprime loans are available, but they are expensive. Nobody has to be a subprime customer. At Phoenix Credit Consultants our team of credit repair experts transforms people from subprime customers to prime customers every day. The cost of our credit restoration services can quickly pay for itself. You cannot afford not to fix your Credit. Call us today (877) 235-6150 and talk to one of our credit repair experts. Get started on the path towards being a “Prime” credit customer.

Restore your credit, and restore your life.