Lending designed specifically for borrowers with low credit scores is called
A)predatory lending.
B)subprime lending.
C)bail-out lending.
D)credit rebuilding.

Question

Quizplus · Accepted Answer

Subprime lending is designed for borrowers who have poor credit scores and may not qualify for traditional loans with lower interest rates. These loans often have higher interest rates and fees to offset the increased risk for the lender. Predatory lending, on the other hand, involves unfair or deceptive practices that exploit vulnerable borrowers, while bail-out lending and credit rebuilding are not specific types of lending for low credit scores.

Lending Designed Specifically for Borrowers with Low Credit Scores Is