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Comparisons

Prime Lending vs Subprime Lending

Understand the differences between prime and subprime lending and how your credit tier affects your options.

Reviewed by the 365loan Editorial Team · Last updated July 7, 2026

Prime and subprime describe the credit risk tier a borrower falls into, which lenders use to set rates and terms. Prime borrowers, generally those with Good credit and above (660+), qualify for a lender's best available rates. Subprime borrowers, typically in the Fair or Poor ranges (below 660), pay more to offset the lender's higher perceived risk.

Prime Lending

  • Generally for credit scores of 660 and above
  • Access to a lender's lowest available rates
  • Wider selection of mainstream lenders
  • Faster approval with fewer documentation requirements

Subprime Lending

  • Generally for credit scores below 660
  • Higher APR to offset increased lender risk
  • Access to specialized lenders who focus on this range
  • Often more emphasis on income and stability, not just score

At a Glance

AspectPrime LendingSubprime Lending
Typical credit range660+Below 660
Typical rateLowerHigher
Lender poolBroader, including mainstream lendersSpecialized subprime lenders
Approval emphasisCredit scoreIncome and overall stability

The Verdict

Your credit score largely determines whether you're treated as prime or subprime, but subprime doesn't mean no options — our network includes lenders who specialize in this range. See our credit score guides to find rates and lenders specific to your exact number.

Prime vs Subprime Loans FAQ

What credit score is considered subprime in Canada?

Generally, scores below 660 (Equifax's Fair and Poor ranges) are treated as subprime by most lenders, though some subprime lenders will work with scores well below that threshold.

Can I move from subprime to prime lending?

Yes — improving your credit score through on-time payments and lower utilization can move you into prime lending territory over time, unlocking better rates on future borrowing.

Will applying affect my credit score?

Checking your rate uses a soft credit inquiry, which does not affect your credit score. A hard inquiry only occurs if you accept an offer and proceed with a lender.

How fast can I get funded?

Most applicants get a decision within minutes. Once you accept an offer, funds are typically deposited within 24 hours, and some lenders offer same-day funding.

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