Unsecured Credit
/ˌʌnˈsɛkjʊrd ˈkrɛdɪt/
Definitions
- (n.) A type of credit extended without requiring collateral, relying solely on the borrower's creditworthiness.
The lender issued unsecured credit based on the customer's strong credit history.
Forms
- unsecured credit
Related terms
See also
Commentary
Unsecured credit is often riskier for lenders, leading to higher interest rates; it is crucial to clearly define terms and obligations in the credit agreement to avoid ambiguity.
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.