Z Cherry Blog

Unsecured Credit Vs. Secured Credit

July 31st, 2008

There are two types of credit available out there to consumer. First, there is secured credit. Secured credit is credit that is extended when the borrower has collateral. Collateral is what the lender will end up taking away from you if you do not make the agreed payments in a timely manner to the lender. Unsecured credit is mostly issued in the form of a credit card. Depending on your credit, you could be offered anywhere from as little as one hundred dollars to tens of thousands of dollars on an unsecured credit card. With unsecured credit, there is no collateral, so if you default, the creditor can try to collect or even sue you for the money.

Entry Filed under: Business