Who are subprime loans most commonly associated with?

Subprime loans are most commonly associated with borrowers who have blemished credit records. These loans are designed specifically for individuals who may have lower credit scores or a history of credit issues, making it challenging for them to secure more conventional financing. Lenders offering subprime loans typically do so with higher interest rates to compensate for the increased risk they are facing with these borrowers.

In contrast, first-time borrowers with good credit would generally qualify for prime loans, which have more favorable terms. Investors looking for rental properties or homeowners seeking refinancing options typically don't fall into the subprime category, as they often have sufficient credit profiles to pursue more advantageous loan products. Thus, individuals with blemished credit records are the primary group associated with subprime loans.