Secured Credit
/sɪˈkjʊrd ˈkrɛdɪt/
Definitions
- (n.) A type of credit or loan that is backed by collateral to secure repayment obligations.
The borrower obtained secured credit using their house as collateral.
- (n.) A financial arrangement in which the creditor has a security interest in the debtor's property until the debt is satisfied.
Secured credit reduces the lender's risk by giving them rights to specific assets.
Forms
- secured credit
Related terms
See also
Commentary
In drafting, clarify the collateral and security interest scope to avoid ambiguity in secured credit agreements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.