Question

What is an unsecured line of credit?
a.
A line of credit which does not require collateral.
b.
A line of credit with a variable interest rate.
c.
A line of credit offered by an institution other than a bank, such as a department store.
d.
A line of credit offered to an individual with no credit history.

Answer 1

a. A line of credit which does not require collateral.

(An unsecured line of credit is backed by the borrower's creditworthiness rather than specific collateral, so lenders often charge higher interest rates or set lower limits.)