Nonprime personal loans are not so different from conventional personal loans. The only difference is that nonprime personal loans cater to borrowers who most conventional loan lenders would identify as risky.
Risky borrowers are those borrowers who have poor credit, usually a score of 660 and below. Still, nonprime lenders just don’t give a loan to anybody who comes knocking on their doors. Per nonprime loan guidelines, lenders are still required to determine a borrowers creditworthiness by looking into his or her overall financial picture.
That means if you don’t fit into their criteria, you will not be approved for the loan. This not only helps lenders protect their investments but also borrowers from getting into too much debt.