Secured/Unsecured question
Date: Thu, 09/07/2006 - 17:44
What is the difference between secured and unsecure accounts? Can you give me examples of each? Thanks!
A secured loan is a loan that is secured or held by something, t
A secured loan is a loan that is secured or held by something, typically property. For example, a mortgage and a car loan would be secured loans. The mortgage is secured by the home and land and the car loan is secured by the car. So if you default on either of those, they take the property away.
Unsecured credit has nothing to secure or hold it. Credit cards are an example of unsecured credit. So if you don't pay your credit card bills, they have nothing they can take away as security. They have to get their money in other ways.
Whether payday loans are secured or unsecured seems to be open to some interpretation.
Rick