When you put down 20 percent of a home's purchase price in cash and finance the other 80 percent with a mortgage, your loan
presents less risk to the lender.
Not exact matches
The common thread is that these are cards for people who have demonstrated that they can handle credit responsibly, and they
present less of a credit
risk to the
lender.
A secured loan, on the other hand,
presents less of a
risk to the
lender because it is secured against a piece of valuable property — generally a house — that can be seized should a borrower fail
to pay.