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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.
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