Select the correct answer.

Question

What is the basis for a decision on an unsecured loan?
A.
collateral
B.
creditworthiness
C.
current lines of credit
D.
home equity
E.
all of the above

Answer 1

The correct answer is B. creditworthiness.

Unsecured loans do not have collateral backing them, so lenders primarily assess the borrower's creditworthiness to make their decision.