Prime borrowers are considered best for lenders. They have credit history showing they are more likely to make loan payments on time and also repay the loans in full. Given all that, prime borrowers tend to get favorable interest rates and have easier time getting loans. They typically have a score greater than 620. 

If you are considered subprime by lenders, you may have some negative marks in your credit history or have too much outstanding debt. This makes you a risky borrower to the loan markets. The interest rates are normally higher, and requirements are subjected to many conditions and terms, making it hard to get approved. 

Your goal is to become a prime borrower, and there are ways to speed it up.

To move faster from being a sub-prime to a prime borrower, you should first analyze your credit report. Look for items that are not verifiable and use that to your advantage since it does not have any proof or reason to impact your score negatively. Reach out to these creditors as they are legally required to remove negative information off your report.

Secondly, ensure that you pay your current outstanding bills since in most cases current bills have much more weight than older entries. Also, if you need a long term loan at the moment, it might be worth a try to always take loans from sources that don’t necessarily show up on your credit. This will not put you in the risk of showing more debt. 

Approach your friends or family that you trust and ask them to add you to any of their existing credit accounts. This works only when the credit account has been opened for more than two years. Their positive history will help  improve your credit score. Do this only when you are sure they will always be current on their accounts. 

Take out a loan or consumer credit which you know you have the ability to pay in full very soon. Allow a few minimum payments with interest and then make a full payment to close out the account. You can get these loans online or at stores that open credit cards to purchase their items. Even credit for low amounts such as $500.00 will help. Before doing this, make sure whichever loan you take does not have a pre-payment penalty.

In a nutshell, to move from being a sub-prime borrower to a prime borrower, you will need to take some steps such as;

  •    Paying your accounts on time
  •    Minimizing the number of accounts you open
  •    Only use a portion of your available credit
  •    By all mean, avoid letting your accounts go to collection

Once doing this, over time, you will be seen by lenders as a prime borrower and receive the benefits associated with it.


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