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Investments glossary

Unsecured

Unsecured loans or lines of credit (LOC) are loans where lending happens without the backing of equal value collateral. Collateral is property or other valuable assets which a borrower offers as a way to secure the loan. In an unsecured loan, the lender will loan funds based on other borrower qualifying factors. These qualifying factors include the credit history, income, work status, and other existing debts.

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