Answered

What are some differences between secured and unsecured loans?

Select TWO (2) that apply.

A. Interest rates are typically different
B. One needs to be paid back, one doesn't
C. One has collateral, one doesn't



Answer :

GinnyAnswer

Final answer:

Secured loans require collateral, have lower interest rates, and unsecured loans do not have collateral.


Explanation:

Secured loans are loans that require collateral such as a house or car, which minimizes the risk to the lender. On the other hand, unsecured loans have no collateral and are granted based on the borrower's credit score.

One key difference is that secured loans have lower interest rates compared to unsecured loans. Additionally, secured loans can result in the collateral being seized if the borrower defaults, while unsecured loans have no assets backing them up.


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