Subprime Borrower

Subprime borrowers do not meet the traditional lending standards for loans, and thus are considered a higher credit risk. Subprime borrowers may have low credit ratings, limited down payments, or other factors that suggest that they have a higher chance of not paying back the loan. Susan did not pay her credit card bills, so when she applied for a loan to buy her house, the lender said that she was a subprime borrower.