Subprime
A classification for borrowers with credit scores below the prime threshold (typically below 620–670) who are considered higher lending risks. Subprime loans carry higher interest rates to compensate lenders for the increased risk of default.
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Fair Credit
A FICO score of 580–669. Credit products are available in this range but often at higher interest rates and with stricter terms. Sometimes called 'subprime.' Building positive credit history can move a score from fair to good within 12–24 months.
- Poor Credit
A FICO score of 300–579. Most mainstream credit products are unavailable or very expensive in this range. Secured credit cards and credit-builder loans are common starting points for rebuilding. About 16% of US consumers have a score in this range (Experian, 2024).
Frequently Asked Questions About Subprime
What does Subprime mean?
A classification for borrowers with credit scores below the prime threshold (typically below 620–670) who are considered higher lending risks. Subprime loans carry higher interest rates to compensate lenders for the increased risk of default.
Is Subprime important for my FICO® score?
Understanding Subprime helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.