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Glossary

Unsecured Loan

A loan that is unsecured means it is extended without collateral. Unsecured loans are time limited; the borrower agrees to pay back the loan in full, plus interest, within an established time frame. A common example of an unsecured loan is a purchase made with a credit card. When you charge a purchase, you are agreeing to pay the cost of the purchase back to the credit card issuer under the terms you agreed to when obtaining the card.

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