Subprime lending describes the lending of money to borrowers with less than ideal credit histories.

Subprime lending is also referred to as second chance lending or B paper.

Supporters of subprime lending argue that such loans provide access to credit to people that would otherwise be shut out and are a way to repair credit. Opponents of subprime lending assert that such loans are destined to fail because the borrowers could never repay the loans that were made to them in the first place.

Many subprime lenders have filed for bankruptcy because of a higher than expected rate of defaulted loans.