2006-10-03 14:20:10 · 5 answers · asked by daniel b 1 in Business & Finance ➔ Credit
I think you mean unsecured credit. That just means that you have no collateral. With a house, or a car, for instance, the bank can always repossess those things if you default on your loan. Unsecured is like a credit card, or a bank loan on your signature alone.
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2006-10-03 14:28:17 · answer #1 · answered by mia2kl2002 7 · 0⤊ 0⤋
A secured debt is backed by an asset. For example if you default on your car loan they can take the car. Unsecured debt (also called unsecured credit) is not backed by an asset. There is no specific property that can be seized in case of default. Credit cards are usually unsecured. If you have a checking account with the bank that issued your credit card, the fine print probably allows your checking account to be used to secure your credit card debit.
2006-10-03 15:32:25 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Unsecured credit is just that...unsecured. The creditor has no tangible property to seize should you default on your debt. However, should you default and the creditor obtains a judgment against you, (very simple,) anything that has your name attached to it, IE: checking, savings, cars, boats homes and the list goes on , is fair game. Don't be lulled into a false sense of security if your car, motorcycle, etc. already has a lien against it. The "unsecured" creditor that now has a judgment against you can easily place a secondary lien against any of your property. From a creditors point of view, is all of the expense worth the return? A lot of factors come into play before a creditor will move against you.
2006-10-03 20:59:45 · answer #3 · answered by ? 5 · 1⤊ 0⤋
Do you mean unsecured DEBT? It is debt without a title or lien. For example, credit cards are unsecured. On the other hand, secured debt is debt tied to property. For example, a house or car has a title and lien, so if you decide not to pay on your your house or car payments, the bank can come get your house or car.
2006-10-03 14:27:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
do you mean unsecured debt? this is a signature loan. that is what credit cards are...you have put up nothing as collateral...no home, no car, etc...just your signature...they loan you money solely on your promise to repay.
2006-10-03 14:29:14 · answer #5 · answered by Cheryl E 4 · 0⤊ 0⤋