subprime loans
High-risk lending products
Subprime loans are loans made to borrowers with poor credit histories or limited ability to repay, carrying higher interest rates to offset the lender's risk.
The term gained notoriety during the 2008 financial crisis, when widespread defaults on subprime mortgages triggered a global economic collapse.
They qualified only for a subprime loan.
- adjustable-rate mortgageHome loan with shifting interest
- financial crisisSevere economic system breakdown
- teaser rateTemporary low introductory interest
- housing bubbleUnsustainable property price surge
- securitizationBundling debts into investable instruments
credit default swap · balloon payment · usury laws · credit crunch · financial instability · too big to fail · systemic risk · stress testing · predatory lending · bad credit · underwater mortgage · wealth inequality · foreclosure · underserved communities · credit card debt · redlining · debt trap · market volatility
- loanslend, borrow, borrower, lender, microloan
- financial biasredlining, credit denial, fair lending, interest rates, approval rates
- Financial Crisisfinancial crisis, Great Recession, recession, credit crisis, bank failures
- housing crisishousing bubble, housing crash, foreclosures, foreclosure, mortgage default
- predatory lendingusury, predatory lending, high interest rates, debt traps, debt cycle
- predatory financevulture capitalism, corporate raiders, predatory lending, asset stripping, pump and dump