Sub-Prime vs. Prime Loans

Posted: Saturday, June 2nd, 2018

While prime and sub-prime auto loans might seem complicated, the difference is simpler than you may think:

  • Sub-Prime: Customers with poor overall financial health will usually only be approved for sub-prime loans. Interest rates are higher than prime loans, as the customer’s credit score is low enough to be considered risky.
  • Prime: A prime loan generally gives a customer a lower interest rate but requires a stronger credit score. Monthly payments will likely be lower.

What’s the Difference Between Sub-Prime and Prime Loans?

Keep these differences in mind if you’re considering applying for a bad credit auto loan:

  • A subprime credit score is generally less than 600. A prime score is 681 and up.
  • Applying for credit online will help you find out how much financing you can get.
  • The larger your downpayment is, the less you’ll have to pay on a monthly basis.
  • A used car financing service like Green Light Auto Credit works with dealerships nationwide to provide better selection for drivers with less than perfect credit.

Apply for a Used Car Loan at Green Light Auto Credit

A low interest auto loan can be yours even if you have bad credit. Get in touch with Green Light Auto Credit today or learn about refinancing an auto loan.