2006-07-27 11:38:25 · 5 answers · asked by Nakima R 1 in Business & Finance ➔ Credit
Usually it is. I'm sure there are some companies that are willing to use your furniture as collateral though. It just means if you don't pay your loan they'll come repo your furniture, same as with a car.
2006-07-27 11:43:18 · answer #1 · answered by ShouldBeWorking 6 · 0⤊ 0⤋
If you mean a loan to buy furniture it depends. You could just borrow the money from a bank and they give you based on your credit etc. Or you can get a bill of sale, which is like a mortgage but for property besides land and houses. That's a secured loan, so that if you default on your loan, your furniture can be repossessed, sold and your debt paid off with you getting the surplus. If you buy it on hire-purchase, its not really a debt in the sense that you don't actually own the item. Unless you have three installments left (this depends on your actual legislation), you're just hiring the goods. This means that if you default, the goods are gone and that's it. They aren't sold for you to get the surplus value. That's also a secured debt.
2006-07-27 18:47:47 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It depends on where you got the loan and what the contract says. The other answerer is correct in saying that if you fail to live up to the contractual obligations and fall behind in payments, the furniture owner can either repossess the property or file a suit against you for recovery of funds. The ultimate collateral damage to you is that it can affect your credit rating for years to come.
2006-07-27 18:48:08 · answer #3 · answered by nothing 6 · 0⤊ 0⤋
I would say NO, but the furniture depreciates a lot when you take it home. At origination, the furniture had value and secured the loan.
2006-07-27 19:48:43 · answer #4 · answered by The Advocate 4 · 0⤊ 0⤋
Anything that is bought with a credit card can be considered unsecured.
2006-07-28 01:23:18 · answer #5 · answered by Paul M 2 · 0⤊ 0⤋