 TITLE: How Subprime Loans Can Affect Your Credit CONTENT: What Is a Subprime Loan?\n------------------------\nA subprime loan is a loan designed for borrowers who have subprime credit because they're either relatively new to credit or rebuilding their credit history after making some mistakes in the past.\nBecause lenders that offer subprime loans take on more risk than lenders that offer only prime and super-prime loans, subprime loans tend to come with higher interest rates. Some also charge additional fees that increase the total cost of the loan.\nDepending on the type of loan, that cost difference could be in the hundreds of dollars or—with a mortgage, for instance—tens of thousands. END