unsecured loans
Collateral-free credit advances
Unsecured loans are loans not backed by collateral—the borrower pledges no property that the lender can seize if payments stop.
Credit cards and personal loans are typically unsecured.
Because lenders take on more risk, unsecured loans usually carry higher interest rates than secured loans like mortgages or car loans: She took out an unsecured loan to cover medical bills.
- credit card debtMoney owed on plastic
- quick cashRapidly obtained funds
- high interestCostly borrowing fees
- creditworthinessAbility to repay debts
- overborrowingExcessive accumulation of debt
borrowing limit · principal amount · usury laws · late fees · debt consolidation · signature · financial instability · revolving credit · credit line · business loans · debt-to-income ratio · collateral · credit score · interest rate · credit history · credit check · APR · installment
- bankingbank, banks, ATM, ATMs, account
- debtscredit card debt, loans, medical debt, student debt, student loans
- loansloans, lend, borrow, auto loans, bank loans
- lendingloans, borrower, approval, lenders, lender
- Consumer Creditcredit cards, credit score, credit scores, interest rates, personal loans
- credit termsloans, credit limits, monthly payment, credit cards, interest rate
unsecured loanssecured loans
Borrowing backed by assets
mortgage · auto loan · home equity loan · car loan · secured credit