which best describes secured credit? it is backed by a valuable asset. it carries no risk for the lender. it…
which best describes secured credit? it is backed by a valuable asset. it carries no risk for the lender. it can be easily obtained. it limits a borrowers debt.
Answer
Brief Explanations:
Secured credit is a type of credit where the borrower pledges a valuable asset (like a house or car) as collateral. If the borrower defaults, the lender can seize the asset. This is what defines secured credit. Lenders still face some risks, it's not easily - obtained as collateral is required, and it doesn't limit a borrower's debt.
Answer:
It is backed by a valuable asset.