unsecured credit
Loan without collateral
Unsecured credit is borrowing not backed by collateral—the lender has no claim on specific assets if you default.
Credit cards and personal loans are typically unsecured: She had $15,000 in unsecured credit card debt.
Because the lender assumes more risk, unsecured credit usually carries higher interest rates than secured loans like mortgages or car loans.
- debtMoney owed another
- bad debtUnrecoverable money owed
- borrowingTemporary taking of another's
- loanBorrowed money repaid later
- interestAttention, stake, or fee
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unsecured creditsecured credit
Loan backed by assets
secured loan · mortgage · secured debt · home equity loan · auto loan
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