Auto Loan Glossary

Non-prime borrowers

The term “non-prime” is used to describe anyone who isn’t considered to be a prime borrower. The fact that someone is considered a non-prime borrower doesn’t mean that they have a bad credit history. It may mean that the individual simply doesn’t have a long credit history. Non-prime borrowers can secure new and refinanced auto loans but may have to pay additional fees or a higher interest rate.