Subprime lending

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Subprime lending

Lending to individuals who have a bad credit history or relatively low income. A higher interest rate is charged for such loans because risk to the lender is higher. Excessive subprime lending is often pointed to as one of the major causes of the financial crisis of 2008-2009.
References in periodicals archive ?
New study findings from StepChange Debt Charity show a strong link between sub-prime credit cards and problem debt.
A clampdown on sub-prime credit cards that charge high interest rates is being urged by a charity.
And StepChange says these "sub-prime" cards are typically offered to low earners and those already in financial difficulties.
The apex bank has raised a warning on the rapid growth in lending to indebted companies around the world and said that the trend is similar to sub-prime lending that triggered the 2008 financial crisis.
Oh no, this was all the fault of American sub-prime mortgages and, wait for it, the Tories.
"The credit quality of GM Financial's loan portfolio should improve steadily as the proportion of prime loans increases relative to near-prime and sub-prime loans," said Jason Grohotolski, a Vice President and Senior Analyst at Moody's.
Wolters Kluwer Financial Services announced today that Automotive Credit Corporation, a leading Midwest-based provider of sub-prime financing solutions, has joined the AppOneA platform.
Sub-prime borrowers are those people with a credit score below 640.
"The Minister for Finance Michael Noonan has confirmed that 56% of the home sub-prime mortgage book is in arrears of 90 days or more," he said.
Meanwhile, sub-prime auto financing (auto loans to car buyers who pay more for their financing because they are more likely to default on payments) is rising.
The Mayor of London said Americans "slagging off" the City following allegations of money laundering at HSBC made earlier this week in the US should remember the sub-prime crisis that triggered the global recession started there.
Venice, FL, June 19, 2011 --(PR.com)-- Gulf Coast Auto Credit announces record sub-prime auto loans funded in May.