Credit and Loans Answers

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A credit score is based in part on

employment and race.

income and location.

employment and trust.

payment history and total debt.

Which describes an example of using unsecured credit?

Someone buys new gutters for a home with a credit card.

Someone buys a new vehicle with a loan from a car dealer.

Someone buys a new home with a mortgage from a bank.

Someone buys a new boat with a loan from a boat dealer.

Which describes the difference between secured and unsecured credit?

Secured credit is backed by an asset equal to the value of a loan, while unsecured credit is not guaranteed by a material object.

Unsecured credit is backed by an asset equal to the value of a loan, while secured credit is not guaranteed by a material object.

Secured credit is risky because banks cannot seize assets, while unsecured credit is less risky because it is backed by material objects.

Unsecured credit enables lenders to seize an asset if a loan is not paid, while secured credit prohibits lenders from taking material objects.

An example of secured credit is a

payday loan.

credit card.

mortgage.

medical bill.

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