However, lenders make bigger profits on subprime loans, interest rates are higher on subprime loans,
subprime loans with high rates have been commanding higher prices in the secondary market and borrowers are dependent on loan officers to help them make financing choices — loan officers who get bigger commissions by marketing subprime loans.
Not exact matches
Specifically, Defendants made false and / or misleading statements and / or failed to disclose that: (i) the Company was engaged in predatory lending practices that saddled
subprime borrowers and / or those
with poor or limited credit histories
with high - interest
rate debt that they could not repay; (ii) many of the Company's customers were using Qudian - provided
loans to repay their existing
loans, thereby inflating the Company's revenues and active borrower numbers and increasing the likelihood of defaults; (iii) the Company was providing online
loans to college students despite a governmental ban on the practice; (iv) the Company was engaged overly aggressive and improper collection practices; (v) the Company had understated the number of its non-performing
loans in the Registration Statement and Prospectus; (vi) because of the Company's improper lending, underwriting and collection practices it was subject to a heightened risk of adverse actions by Chinese regulators; (vii) the Company's largest sales platform and strategic partner, Alipay, and Ant Financial, could unilaterally cap the APR for
loans provided by Qudian; (viii) the Company had failed to implement necessary safeguards to protect customer data; (ix) data for nearly one million Company customers had been leaked for sale to the black market, including names, addresses, phone numbers,
loan information, accounts and, in some cases, passwords to CHIS, the state - backed
higher - education qualification verification institution in China, subjecting the Company to undisclosed risks of penalties and financial and reputational harm; and (x) as a result of the foregoing, Qudian's public statements were materially false and misleading at all relevant times.
Basically, this is a
subprime or near - prime vehicle
loan with a
higher interest
rate compared to standard solutions.
Subprime loans were mortgages
with higher interest
rates than conventional mortgages offered to people
with low incomes or poor credit or who simply failed to shop around and understand they qualified for better
rates.
Individuals
with lower credit scores are targeted
with subprime loans with higher interest
rates.
For the last seven years car
loans have outpaced nearly all lending categories; but
with fewer
loan options and the prospect of
higher interest
rates,
subprime borrowers will continue to avoid new car purchases.
The reason is that
subprime loans come
with higher that average interest
rates.
Many people who try to get a mortgage
with credit scores lower than 580 will be getting a
subprime loan, which can come
with a hefty down payment and much
higher rates.
One downside to these
subprime car lenders is they will come
with a
higher interest
rate which will increase your monthly payment and the amount you will pay in total over the life of your
loan.
Subprime lenders provide mortgage
loans to people
with adverse credit at slightly
higher rates.
The era for
high rates on
subprime loans has passed, as FHA guarantees competitive interest
rates with no excessive penalties for refinancing or paying off early.
Other common choices include
subprime and hard money home
loans that come
with much
higher interest
rates or even adjustable
rates.
Although you can qualify for some car
loans with bad credit, it's a good idea to avoid
subprime auto
loans and their sky -
high interest
rates whenever possible.
The interest
rates associated
with subprime mortgages have been
higher than those associated
with prime
loans.
FICO ® Scores (the credit - risk scoring system lenders use) of 620 or lower will usually place you in the «
subprime» category where you may receive
loans quoted
with significantly
higher interest
rates and may be offered fewer varieties of
loans.
Fixed -
rate subprime loans were rare and expensive all throughout the housing boom,
with rates in the
high - single - and low - double - digit range.
A 2005 study by the Center for Responsible Lending concluded that borrowers
with subprime loans and prepayment penalties do not receive lower interest
rates, and may actually pay
higher rates.»
Subprime personal
loans are for people
with a
high risk of default based on their credit score, which means obtaining an unsecured personal
loan may be difficult without collateral, and the
loan will generally have a
high interest
rate.
-- Experts say they're a headache, issuers rarely offer it, yet the co-signed credit card may be making a comeback as a more - regulated industry searches for lost profits... (more) 4 questions to ask before you co-sign on a credit card — Explore alternatives and find out what you're in for
with these questions for anyone who asks you to be a co-signer on a credit car or other
loan... (more) Issuer of 79.9 percent interest
rate credit card defends its product —
Subprime credit card marketers are looking for ways around new restrictions on sky -
high fees for bad credit cards.
Brinkmann said problems
with subprime loans are diminishing because the industry has stopped approving those
loans and many of the
subprime adjustable
rate mortgage
loans already have reset to
higher rates.
PNC Bank personal
loans could work as an affordable alternative to small - dollar installment
loans, many of which are designed to attract
subprime borrowers and come
with high interest
rates.
Loans for people
with subprime credit are rarely advertised because the
rates are so much
higher.
That's because
subprime auto
loans tend to have very
high interest
rates and may also come
with additional fees, making them significantly more expensive over the long term than the
loan you could potentially obtain
with better credit.
Yet,
with homeownership already falling to 68.2 percent in the third quarter of 2007 from the historic
high of 69.2 percent in the second quarter of 2004 and the tightening of mortgage
loan credit in response to excesses of
subprime lending, it's unlikely that the homeownership
rate will increase in the near future.
Buyers
with little or no credit were offered
subprime loans that began
with low «teaser»
rates that adjusted to much
higher rates later on.
The Fed has accused the bank of steering borrowers into
subprime loans with higher interest
rates, even when borrowers qualified for lower interest
rate mortgages.
Driven by Wall Street's demand for
subprime loans to securitize and sell to investors, lenders sold
high - risk products such as exploding adjustable -
rate mortgages —
loans with interest
rates that could triple after two years — and liar
loans, also known as stated income
loans, which required little or no documentation about income, assets, or credit history.