- Category: Finance
- Published: Thursday, 14 January 2016 16:19
- Written by Access Ohio 2040
- Hits: 883
What exactly is a subprime loan and how are charter schools related? According to Investopedia, a subprime loan is a type of loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. Subprime borrowers are usually individuals with a low credit score, who lenders believe might end up defaulting on the repayment of a loan. These types of loans are set up for individuals who also might be interested in getting cash for title loans, because they might not require a credit check. Subprime loans and charter schools have one thing in common, and that is government backing. Let's take a closer look.