What are high-interest loans to people at high risk of defaulting called?

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Quizplus · Accepted Answer

Subprime loans are high-interest loans that are given to people who have poor credit ratings, a history of defaulting on loans or have a high risk of defaulting. These borrowers are seen as high-risk, and thus lenders charge them higher interest rates to compensate for the increased risk. Predatory loans, on the other hand, are loans that are given to borrowers who don't fully understand the terms of the loan, leaving them vulnerable to high fees and interest rates. Subpar and subversive loans are not commonly used terms in financial language.

What Are High-Interest Loans to People at High Risk of Defaulting