What's the difference between subprime and prime?

Subprime is used to describe a market sector characterized by consumers with damaged or no credit. Subprime credit cards or loans typically require security deposits, annual or application fees, or higher percentage rates because consumers who apply for these offers have had credit problems in their past or lack credit altogether.

Prime is used to describe a market sectore characterized by consumers with good or excellent credit. Prime credit cards or loans usually do not require security deposits or application fees, offer lower percentage rates and reward programs alongside other benefits.