prime and subprime loans | BTCC Knowledge

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Subprime loans refer to loans offered to borrowers with poor credit history or low credit scores, often at higher interest rates than prime loans. Subprime mortgages are a type of subprime loan used for home purchases. Prime mortgages, on the other hand, are offered to borrowers with good credit history. Subprime loans were a major factor in the 2008 financial crisis, as many borrowers struggled to repay their high-interest loans.

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