Question

quiz
question 3 of 8
which best describes the difference between secured and unsecured loans?
select a response.
○ secured loans require collateral, while unsecured loans do not
○ secured loans usually have higher interest rates than unsecured loans
○ secured loans do not appear on your credit report, while unsecured are reported
○ secured loans have more flexible payment plans than unsecured loans

Explanation:

Secured loans are backed by an asset (collateral) that the lender can seize if the borrower defaults, while unsecured loans have no such collateral. Unsecured loans typically have higher interest rates due to higher lender risk, both types appear on credit reports, and payment plan flexibility varies by lender rather than being tied to the loan's secured/unsecured status.

Answer:

Secured loans require collateral, while unsecured loans do not