Credit that requires collateral that protects payment of the loan is referred to as ________.

Question

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Secured credit requires collateral, such as a car or a house, to protect the lender if the borrower defaults on their payments. This type of credit usually has lower interest rates because there is less risk for the lender. Revolving credit refers to a credit line that can be used repeatedly up to a certain limit, while equal credit and fair credit are not terms typically used to describe types of credit.

Credit That Requires Collateral That Protects Payment of the Loan