B/C Loan



A classification of loans associated with the borrowers that have tainted or limited credit histories. Generally, B/C refers to any loan that is classified as subprime, or a "B" or "C" class loan.

Within the subprime sector borrowers are graded according to their credit history. Different lenders have different grading systems based on different credit requirements. One subprime lender might have a grading system with classifications designated as A to C minus, while another subprime lender might have a grading system with classifications designated as Premium to C which all fall within the subprime sector.


Because of the credit risk associated with subprime lending, B/C loan usually have higher costs and interest rates than prime loans. B/C loans are important financing vehicles for consumers with less than optimal credit histories because they provide an opportunity for such consumers to repair/improve their credit to the point where they can obtain more favorable future financing terms.

  1. Subprime Lender

    A type of lender that specializes in lending to borrowers with ...
  2. Subprime

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  3. Alt-A

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  4. Prime

    A classification of borrowers, rates or holdings in the lending ...
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