Which of the following credit services requires collateral?(1 point)

Responses

line of credit
line of credit

personal loan
personal loan

credit card
credit card

auto loan

1 answer

The credit service that requires collateral is the auto loan. An auto loan is secured by the vehicle itself, meaning that if the borrower fails to repay the loan, the lender can repossess the car.

In contrast, a line of credit, personal loan, and credit card are typically unsecured, meaning they do not require collateral.