Credit Is When The Lender Doesn’t Require You To Put Down A Security Deposit Or Collateral.
Credit doesn't always exclude the need for collateral, some lenders require security deposits or collateral for certain types of credit.
by Sai V
Updated Oct 26, 2023
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Credit Is When The Lender Doesn’t Require You To Put Down A Security Deposit Or Collateral.
a. True
b. False
The correct answer is: B. False
Credit is a broad term that refers to the borrowing of money or other financial resources with the expectation that the borrower will repay the loan over time with interest. While some types of credit, like credit cards or personal loans, don't require collateral (a security deposit or assets pledged as security), many other types of credit, such as secured loans (like mortgages or car loans), do require collateral.
The statement "Credit Is When The Lender Doesn’t Require You To Put Down A Security Deposit Or Collateral" is false because it doesn't cover all types of credit. Unsecured credit doesn't require collateral, but secured credit does involve collateral to secure the loan.
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