Prime

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Dictionary Says

Definition of 'Prime'

A classification of borrowers, rates or holdings in the lending market that are considered to be of high quality. This classification is placed on those borrowers that are deemed to be the most credit-worthy and the prime rate is the rate that a lender will lend to its high quality borrowers.
Investopedia Says

Investopedia explains 'Prime'

Lenders use a credit scoring system to determine which loans a borrower may qualify. A major variable in this credit scoring system is a borrower’s FICO score (which may range from 300 to 850). In general a borrower with a FICO score greater than 620 is considered to be eligible for a prime loan; however, other variables, such as past payment history, bankruptcy, foreclosure and the loan-to-value ratio are also considered.

Since a lender’s incentives are not always aligned with a borrower’s incentives, it is important for consumers to shop for the best loan at the best rate. 
Search results for

'Prime'

  • Consider Prime Rate Funds For More Income

    http://www.investopedia.com/articles/mutualfund/08/prime-rate-funds.asp
    Consider Prime Rate Funds For More Income. ... Prime-rate funds are closed-end mutual
    funds that seek to provide yields that match the prime rate. ...

  • Prime Picks In Pipelines

    http://stocks.investopedia.com/stock-analysis/2011/Prime-Picks-In-Pipelines-AMLP-SRV-ENB-EEP-EPD-EPB1017.aspx
    ... Article; Comments (0). Prime Picks In Pipelines. Posted:
    Oct 17, 2011 10:34 AM by Aaron Levitt. ...

  • DivX Wins As Digital Video Goes Prime Time

    http://stocks.investopedia.com/stock-analysis/2010/DivX-Wins-As-Digital-Video-Goes-Prime-Time-DIVX-DLB-DTSI-SNE-TWX-AAPL0305.aspx
    ... Article; Comments (0). DivX Wins As Digital Video Goes Prime Time.
    Posted: Mar 05, 2010 14:59 PM by Eugene Bukoveczky. ...

  • A Primer On Investing In The Tech Industry

    http://www.investopedia.com/articles/stocks/10/primer-on-the-tech-industry.asp
    While some investors see it as volatile and unreliable, the tech sector can provide
    fantastic returns for investors with a little know-how in the field.

  • Investment Scams: Conclusion | Investopedia

    http://www.investopedia.com/university/scams/scams5.asp
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
    Investing; Markets; Personal Finance; Active Trading; Forex; ...

  • Read Credit Card Correspondence And Save

    http://www.investopedia.com/articles/pf/10/credit-card-correspondence.asp
    ... Let's say your current interest rate of 11.4% Annual Percentage Rate -
    APR is stated as 7.9% + the Prime Rate. Taking 11.4% minus ...

  • Subprime Lending: Helping Hand Or Underhanded?

    http://www.investopedia.com/articles/basics/07/subprime_basics.asp
    ... August 24 2007 | Filed Under » Investing Basics. Subprime is a classification of
    loans offered at rates greater than the prime rate to individuals who are ...

  • Investment Scams: Different Types Of Scams | Investopedia

    http://www.investopedia.com/university/scams/scams1.asp
    ... Prime Bank - This term usually describes the top 50 banks (or thereabouts)
    in the world. Prime banks trade high quality and low ...

  • How Interest Rate Cuts Affect Consumers

    http://www.investopedia.com/articles/economics/08/interest-rate-affecting-consumers.asp
    ... The rate banks charge their most creditworthy corporate customers is known
    as the prime lending rate. Often referred to as "prime ...

  • Which of the following are tools that are employed by the Federal ...

    http://www.investopedia.com/ask/answers/09/series7-031009.asp
    ... Changing the prime interest rateA. I, II, III, IVB. II, III,. ... Changing the prime
    interest rate A. I, II, III, IV B. II, III, IV C. I, III D. I, II, III ...

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