Glossary
Subprime Auto Loan
A loan made to a borrower with a credit score typically below 620.
Subprime auto loans carry APRs of 13-25%+. They also have higher default rates and often include aggressive repossession terms. Improving your credit before applying — even by 50 points — can save thousands.
Related terms
FICO Score
A 300-850 credit score model used by most lenders to evaluate auto loan applicants.
Prime Borrower
A borrower with a credit score generally above 660 who qualifies for standard auto loan rates.
Buy Here Pay Here (BHPH)
A dealership that finances its own customers — typically subprime — in-house.