 TITLE: What Is the Difference Between a Prime Loan and a Subprime Loan? CONTENT: How Do Subprime and Prime Loans Affect Credit?\n----------------------------------------------\nBoth subprime and prime loans affect your credit in the same way. If you make your loan payments on time, both can help improve your credit score. If you miss loan payments or default on either type of loan, however, your credit score can suffer.\nAre you trying to boost your credit score into the prime range? The way you manage a subprime loan can help. Doing the following can help ensure the most positive impact on your scores:\n*   **Make sure your payments are reported.** Before you apply for a subprime loan, ask if the lender reports your account to the three consumer credit agencies: Experian, TransUnion and Equifax. This ensures your on-time payments will show up on your credit history, which can help to improve your credit.\n*   **Always make your loan payment on time.** To avoid missing a payment, set reminders, put the loan due date on your calendar or set up an automatic payment from your bank account. (Just be sure to have enough money in the account to cover the payment.) The timeliness of your payments is the single biggest factor in your FICO® Score.\n*   **If you do miss a payment despite your efforts, don't panic.** Instead, pay it as soon as you possibly can. Late payments aren't reported to credit bureaus until they are 30 days past due. Although you may be charged a late fee and face other penalties, a payment that's a couple days past due shouldn't affect your credit score. END