Even conventional lenders require those borrowing more than 80 percent of the purchase price to pay for insurance that protects the lender from the increased possibility of default. (articles.chicagotribune.com)
Most creditors do not approve loans made by people with poor credit because of the high possibility of default. (lizloans.com)
Banks charge a higher rate from the customers with a poor credit record, because such people have a high possibility of defaulting bank loans. (syndicatemortgages.com)