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Prime vs Sub-Prime??

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Ok so I think I get what this is and please correct me if I'm wrong.

Prime is larger banks with better CLs and interest rate - Need good credit (or somewhat good)

Sub is less CLs and bad rates - Approval rate is higher.

Besides that am I missing anything?

Also does Prime vs Sub affect your credit reports/scores in anyway besides CLs/Util?


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Prime vs. Subprime is mostly about the rates you get charged for financing. The least risky (Prime) borrowers are going to get the best terms and rates. Many small banks/credit unions specialize in prime lending. Many of the largest banks (or formerly banks) like WaMu/Countrywide were primarily subprime lenders. In banking world...bigger isn't necessarily better especially in this day and age. And, many subprime cards can have high limits. And many prime cards can start you off at relatively low limits.

Having a prime account vs. a subprim doesn't have any impact on your credit score. (Given that they have the same age and limit)

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