secured credit
Pledged asset loan
Secured credit is a loan or line of credit backed by collateral—property or assets the lender can seize if the borrower defaults.
Mortgages and car loans are common examples, where the house or vehicle serves as security.
Because the lender has this protection, secured credit typically offers lower interest rates than unsecured credit like credit cards.
Her secured credit card required a $500 deposit to establish her credit history.
- real estateLand and its structures
- car loanBorrowed money for wheels
- lienClaim securing debt
- vehiclesMachines for transportation
- boat loanBorrowed funds for vessels
pink slip · repo man · mortgage · second mortgage · foreclosure · home equity loan · down payment · repossession · business loan · debt restructuring · title deed · pledge · pawn shop · collateral · bankruptcy law · bridge loan · payment plans · loan shark
- creditcreditworthiness, creditworthy, FICO, FICO score, microcredit
- credit scoresFICO score, creditworthiness, payment history, FICO, Equifax
secured creditunsecured credit
Lending without pledged assets
unsecured loan · unsecured debt · signature loan · personal loan · credit card debt
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