subprime

adjective

sub·​prime ˈsəb-ˌprīm How to pronounce subprime (audio)
1
: having or being an interest rate that is higher than a prime rate and is extended chiefly to a borrower who has a poor credit rating or is judged to be a potentially high risk for default (as due to low income)
subprime mortgages
a subprime loan
2
: extending or obtaining a subprime loan
subprime lenders
subprime borrowers

Examples of subprime in a Sentence

Recent Examples on the Web The bank is beginning to see some cracks in the subprime auto loan market. Nicole Goodkind, CNN, 12 Apr. 2024 One large study showed about 80% of people seeking abortions had subprime credit scores. Hilary Fung, NPR, 11 Apr. 2024 The answer is Don Hankey, a subprime car loan billionaire who has run afoul of regulators. Elizabeth Robinson, NBC News, 4 Apr. 2024 Hankey also owns North Hollywood Toyota and has long diversified beyond making subprime vehicle loans. Laurence Darmiento, Los Angeles Times, 3 Apr. 2024 Lenders may be hesitant with the percentage of subprime auto borrowers at least 60 days past due on their loans rising to 6.11% in September, the highest in data going back to 1994, according to Fitch Ratings. The Courier-Journal, 23 Feb. 2024 Capital One has a larger portfolio of subprime borrowers than other credit card issuers, and Discover’s portfolio is composed of many people early in their credit journey. Alicia Adamczyk, Fortune, 20 Feb. 2024 However, people with credit scores below 450 are considered subprime borrowers. Elizabeth Rivelli, Car and Driver, 19 July 2023 Homebuilding has never recovered from the subprime meltdown. Matt Egan, CNN, 2 Mar. 2024

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'subprime.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1995, in the meaning defined at sense 1

Time Traveler
The first known use of subprime was in 1995

Dictionary Entries Near subprime

Cite this Entry

“Subprime.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/subprime. Accessed 17 Apr. 2024.

Legal Definition

subprime

adjective
sub·​prime ˈsəb-ˌprīm How to pronounce subprime (audio)
1
: having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers
subprime mortgages
2
: extending or obtaining a subprime loan
subprime lenders
subprime borrowers

More from Merriam-Webster on subprime

Last Updated: - Updated example sentences
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