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Question
which types of credit are most similar to each other?
auto loan and mortgage loan
auto loan and personal loan
credit card and mortgage loan
mortgage loan and personal loan
Auto loans and mortgage loans are both secured loans, meaning they are backed by collateral (the vehicle for auto loan, the property for mortgage loan). They have fixed repayment terms, are used for specific large - purchase assets, and follow similar lending and repayment structures. Personal loans are often unsecured, and credit cards are revolving credit with different usage and repayment patterns compared to mortgage/auto loans.
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A. auto loan and mortgage loan