How Does Sub-Prime Financing Work?

         Not everyone has had a perfect credit history, and most times it's through no fault of their own. Young consumers don't understand that every financial decision they make since the day they turn eighteen is tracked on their credit reports. Yes, some people make bad decisions, but most people want to pay their bills on time. It just so happens that sometimes, people are forced to choose between two necessities. Others have simply been a victim of circumstance... Divorce, accidents, unexpected medical costs, or loss of a job can affect a consumer's credit rating. Auto finance companies prefer those with "Prime" credit, meaning those who have excellent credit and haven't fallen on hard times and were unable to pay a bill or two on time. Everyone one else outside of that "Prime" category would be considered "Sub-Prime".