Sub-prime loans
Students with the highest SAT and ACT scores get their choice of the most prestigious colleges. Lending institutions aren’t so different - consumers with the highest credit scores get their choice of the best borrowing opportunities and lowest interest rates.
Shopping around for the best lender becomes even more important when your score may not be as attractive as it could be. You may, for instance, find that you’re offered what is known as a sub-prime loan, because your current risk profile makes you a high risk. With more flexibility stemming from loose credit, lenders may say yes to a loan, but at a higher - or sub-prime - cost. (In a time of tight credit, you might not qualify for a loan at all.)
My dictionary says that a sub-prime loan is “a loan that is offered at a rate above prime to individuals who do not qualify for prime rates.” Wasn’t that a big help? My own definition is this: A sub-prime loan is an expensive loan that you don’t want if you have any choice in the matter.
Do a credit check and make sure there are no mistakes.