SUBPRIME LENDING

Subprime lending is also known as second chance lending. This word is related to financial loans. Making loans that are in very risky category of consumer loans are called subprime lending. Lenders frequently take on risks related with lending to people with limited credit or bad credit ratings to way in this increasing market gradually. This cluster of credit companies consist of major banks such as Wells Fargo, CitiBank etc. in the USA. In the United States Credit card companies began offering subprime credit cards in 1990s to borrowers who were with low credit scores. Viewer, regulator, and market do not yet fully identify with the risks because the trend is new.