Which credit score range is generally considered "subprime"?

The classification of credit scores is essential for understanding how lenders assess risk when extending credit. The range considered "subprime" typically refers to individuals who have credit scores that indicate a higher risk of default, which makes it more challenging for them to obtain loans or may result in higher interest rates when they do.

A score below 620 is commonly recognized as subprime, meaning borrowers in this range are viewed as less reliable in terms of repaying loans. This classification helps lenders determine the borrower’s creditworthiness and guides the terms and conditions of a potential mortgage.

Conversely, higher scores, such as those above 700 and even 640 to 700, are generally seen as prime credit; individuals in these categories are viewed as lower risk. Borrowers with scores between 580 and 640 may also face challenges, but they are typically classified in a different tier—often referred to as near-prime—rather than purely subprime. This critical understanding of credit scoring assists in risk assessment and lending decisions.