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However, subprime should not be considered a permanent negative status for those consumers who are classified as such. Many consumers in the [link widoczny dla zalogowanych] subprime [link widoczny dla zalogowanych] category did not get there completely of their own negligence. Burdens of [link widoczny dla zalogowanych] life like job loss, marital problems, or unforeseen medical issues, usually cause major financial setbacks. And because of these unexpected difficulties, late payments, repossessions, charge offs, and even bankruptcies may result.

[link widoczny dla zalogowanych] Nonetheless, subprime borrowing can extend credit to people who may otherwise not have access to the credit market. Lenders allow individuals to receive subprime loans while paying higher interest rates and fees; but this allows for loans that would otherwise not occur for people who would typically be denied lines [link widoczny dla zalogowanych] of credit altogether. Borrowers can use this credit to finance the purchasing [link widoczny dla zalogowanych] of a car, or to buy a house, or for remodeling a home. And just because someone may have a bad credit rating, it does not mean they would not have [link widoczny dla zalogowanych] sufficient income to support payments on a subprime loan.

Proponents of subprime lending maintain [link widoczny dla zalogowanych] that it can provide a method for individuals to repair or improve their credit rating. If a borrower can uphold a good payment record, most lenders will allow for them to refinance into more mainstream or prime rates after a few years. Subprime loans [link widoczny dla zalogowanych] may carry higher interest rates, but provided the consumer enters [link widoczny dla zalogowanych] into their loan with the knowledge that they are a higher risk to lenders, and that they must make every effort to issue timely payments, these loans do in fact serve many borrowers who would otherwise be underserved, and provide them a way to move further out of subprime rating in the future. When an individual enters into a subprime loan, they should be realistic in their expectations and be honest about what they can [link widoczny dla zalogowanych] afford, and only take on a payment that is well within their budget.