unsecured loan
Collateral-free borrowing arrangement
An unsecured loan is money borrowed without collateral—the lender can't seize specific property if you default.
Credit cards and personal loans are typically unsecured, unlike mortgages or car loans where the asset backs the debt.
Because the lender takes more risk, unsecured loans carry higher interest rates: She took out an unsecured loan to cover the medical bills.
- quick cashRapidly obtained funds
- revolving creditReusable loan with limit
- credit scoreNumerical measure of borrower reliability
- credit checkExamination of payment history
- contractEnforceable written agreement
bad credit · promissory note · fine print · usury laws · borrower · risk · creditworthiness · interest rate · high interest · line of credit · collateral · debt trap · debt-to-income ratio · credit card debt · principal amount · lender · approval · credit history
- bankingbank, banks, ATM, ATMs, account
- loansloans, lend, borrow, auto loans, bank loans
- lendingloans, borrower, approval, lenders, lender
- business debtcredit line, line of credit, accounts payable, balloon payment, corporate bond
- credit termsloans, credit limits, monthly payment, credit cards, interest rate
- loan termsunsecured loans, interest rate, short-term, long-term, emergency loans
unsecured loansecured loan
Borrowing with pledged collateral
mortgage · auto loan · home equity loan · car loan · secured credit