Meaning & use
secured credit
Last updated
Meaning
noununcountablefinancebusiness
Credit that is backed by an asset the lender can take if the borrower does not repay.
Grammar: Uncountable; often used before another noun, as in 'secured credit card'.
Patterns
- secured credit card
- secured credit loan
- offer secured credit
The bank offers secured credit to customers who put up collateral.
A secured credit card requires a cash deposit as security.
Common combinations
- secured credit card
- He got a secured credit card to rebuild his credit score.
- secured credit loan
- A secured credit loan uses your car as collateral.
- secured credit facility
- The company arranged a secured credit facility with its bank.
- secured credit line
- They opened a secured credit line using their savings as backing.
Synonyms and how they differ
- collateralized credit
- A more technical term for credit backed by specific assets.
Opposites
Word family
Commonly confused: secured credit or unsecured credit?
secured credit vs unsecured credit
Unsecured credit is not backed by an asset, so it is riskier for the lender and often has higher interest.
Practice
Because the loan is ___, the bank can take your house if you don't pay.
Choose one answer.
Secured means backed by an asset. Unsecured is the opposite, security is a noun, and secure is a verb or adjective not used in this pattern.
Make it your own
Write a sentence using “secured credit”, then check it and compare it with the examples above.