subprime

[ suhb-prahym ]

adjective

1. being of less than top quality:

   a subprime grade of steel.

2. being below a prime rate:

   banks engaging in subprime lending.

subprime

/ ˈsʌbˌpraɪm /

adjective

1. (of a loan) made to a borrower with a poor credit rating, usually at a high rate of interest

noun

1. a loan made to a borrower with a poor credit rating

Word History and Origins

Origin of subprime¹

sub- + prime

Example Sentences

Both Obama and Biden were confronted with historic economic meltdowns, thanks to the subprime mortgage financial crisis and the mismanaged pandemic, before they even walked into the Oval Office.

From Salon

Ever since, however, questions have been raised about the company that issued the bond — led by a billionaire Trump supporter who specializes in subprime auto loans — and whether New York Attorney General Letitia James will even be able to collect what's owed should Trump's conviction be upheld.

From Salon

It was none other than Los Angeles billionaire Don Hankey, 80, a hard-money lender who has made a fortune in financing vehicle sales to subprime borrowers — but has expanded far beyond that industry to other businesses where there is a sure profit to be made.

From Los Angeles Times

No. Hankey’s wealth has its foundation in Westlake Financial Services, one of the top providers of subprime auto loans to borrowers with bad credit.

From Los Angeles Times

Hankey also owns North Hollywood Toyota and has long diversified beyond making subprime vehicle loans.

From Los Angeles Times