Sentences with phrase «valuable collateral»
"Valuable collateral" refers to assets or property that a borrower pledges to a lender in order to secure a loan. It acts as a form of security and can be used by the lender to recover their money if the borrower fails to repay the loan. Full definition
Because they use valuable collateral to secure the loan, most everyone is eligible and will be approved after the short application process has concluded.
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Secured debt is debt that's tied to some sort of valuable collateral, like a home or a car; unsecured debt is debt without collateral, like credit card debt.
Interest rates are generally lower if you have a good credit score and if your loan is secured by valuable collateral, such as a house, according to the Minneapolis Federal Reserve, because the lender has a lower risk of losing the money it lends you.
Fortunately, now, there are options available to you that don't require stellar credit or valuable collateral.
When you take out a car loan, for instance, the loan is «secured» because it is tied to valuable collateral (the vehicle).
More valuable collateral typically means a lender will be more lenient in their judgment, while less valuable collateral means you might have to score higher on the other 3 Cs.
Because unlike unsecured debts, such as personal loans or credit cards, you actually have some valuable collateral to offer the lender — your home.
These assets are more likely to be favored by the regulators as they have a valuable collateral behind them.
As their value is linked to real assets, they are less volatile than other cryptocurrencies, and more likely to be favored by the regulators as they have a valuable collateral behind them.