Unsecured line of credit

An unsecured line of credit means you have no collateral attached to the loan. For example a home loan has the house attached to the loan i.e. it is secured by the house and if you default then you lose the house. A credit card typically does not have collateral attached to it and is unsecured but has a munch higher rate and worse fees.

Print this message out and keep it. In 20 years I promise you will thank me if you follow this advice. It is in your best interest to stay away from the unsecured credit. The rates are terrible and if you are not careful you will end up like so many others that are buried in credit card debt with no way out by bankruptcy. You typically end up paying $2 dollars for every dollar borrowed. That means a 1 dollar burger at Wendy's ends up costing you $3. Credit card companies are snakes and if you play with them you will be bitten. It is a given. I bet there is not a single person on these boards that has not been screwed by a credit card company in some fashion.

It means you have really good credit or someone is trying to steal personal information from you! Who sent it and what does it say. Be careful. It could be one of these credit card catalogs where you pay an application fee and all you can do with your line of credit is buy stuff from an overpriced catalog.

frogpatch beat me to that one, but that's exactly what it sounds like it would be.