________ is a situation in which a creditor agrees to extend credit only if the purchaser pledges some personal property as collateral for the loan.

Question

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Secured credit is the type of credit in which the creditor agrees to extend credit only if the purchaser pledges some personal property as collateral for the loan. The collateral is used to secure the debt, which means if the borrower fails to repay the loan, the creditor can take possession of the collateral to recover the amount owed. This type of credit is often used for loans such as car loans, home mortgages, or business loans.

________ Is a Situation in Which a Creditor Agrees to Extend