Business, 26.07.2019 11:30 NeverEndingCycle

Prime lending rates are 1) than subprime lending rates and are commonly offered to people with credit scores. budget challenge

Answers: 1

Show answers

Answers

Prime lending rates are lower than subprime lending rates and are commonly offered to people with good credit scores.

A prime lending rate is a rate used by a bank that is typically used in favor of "good" customers. These people tend to have great credit so they get a larger amount approved but at a lower interest rate than subprime. Subprime interests rates are higher because they are typically given out to those with poor credit history.

Answer from: mishcacross21

Prime lending rates are “lower” than subprime lending rates and are commonly offered to people with a “good” credit score.

Further Explanation:

Prime lending rate:

The prime lending rate is the interest charged by the banks to provide prime lending. Prime lending is given to those customers who have good credit scores. This type of lending is given to trustworthy customers. In this lending, there is a necessity of mortgage in case of lending without the mortgage; the loan will not be issued to the customers. The risk associated in this lending is less. That's why the rate of interest is charged lower.

Subprime lending rate:

The subprime lending rate is the interest charged by the banks. It is always higher than the prime lending rates. There is no need for a mortgage in the case of subprime lending. That's why the interest charged on this is higher than the prime lending. Subprime lending is given to those customers which having poor credit scores.

As in prime lending rates are lower than the subprime lending rates because the risk involved in the prime lending is less than the subprime lending. When the customer fails to pay the amount of loan in prime lending, the lender has mortgage value to get back their loan amount. This lending is offered to those people who have a high credit score. A credit score means a score that shows how much probability the customers will pay back the loan amount.

Learn more:

1.Learn more about credit score

2.Learn more about mortgage

3.Learn more about credit utilization value

Answer details:

Grade: Middle School

Subject: Accounting

Chapter: Types of loans

Keywords:subprime lending rates, prime lending rates, lower, good credit score, mortgage, rate of interest, trustworthy customers, the interest charged, the risk associated.

Answer from: Quest

i would prefer to go with the news article for nate, its recent and updated and stores a lot of information

Answer from: Quest

answer; synthetic production system;

Another question on Business

Business, 22.06.2019 10:50

Kimberly has been jonah in preparing his personal income tax forms for a couple of years. jonah's boss recommended kimberly because she had done a good job setting up the company's new accounting system. jonah is very satisfied with kimberly's work and feels that the fees she charges are quite reasonable. kimberly would be classified as a(n) (a) independent auditor (b) private accountant (c) public accountant (d) accounting broker

Answers: 1

Answer

Business, 22.06.2019 11:00

When the federal reserve buys bonds from or sells bonds to member banks, it is called monetary policy reserve ratio interest rate adjustment open market operations

Answers: 1

Answer

Business, 22.06.2019 13:10

The textbook defines ethics as “the principles of conduct governing an individual or a group,” and specifically as the standards one uses to decide what their conduct should be. to what extent do you believe that what happened at bp (british petrolium) is as much a breakdown in the company’s ethical systems as it is in its safety systems, and how would you defend your conclusion?

Answers: 2

Answer

Business, 22.06.2019 16:00

Which plan offers a tax-free education?

Answers: 1

Answer

You know the right answer?

Prime lending rates are 1) than subprime lending rates and are commonly offered to people with cre...

Questions