Posts Tagged ‘Between’
Question by Carlton Januarie: Can you guys please explain to me whats the difference between a secured and unsecured loan ?
Can you guys please explain to me whats the difference between a secured and unsecured loan and the implication this has on a start up company requiring a bank loan…
Best answer:
Answer by A.J.
Secured means you pledge something (called collateral) that you are willing to give to a lender in case you can’t repay them. For example a home for a mortgage or a car for a car loan. This reduces the risk to a lender and increases the risk you’ll lose the collateral if things go south.
Unsecured means that you are lent money just based on your good looks and credit score. The amounts are never very high when it’s unsecured – rarely exceeding $ 100k.
In my experience the last thing you want to do is take on any debt for a startup. As confident as you are, things usually go wrong with startups, and let me tell you picking up the pieces is very tough. The better advice is… if you only make $ 10 in sales, learn to live on $ 5.
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Related Unsecured Loan Products
What would be the point of getting a car loan for a car rather than just paying for it on a 3.99fixed balance transfer that is a check that I can cash at the bank.
At some places, when I use my bank card, I get an option to either use it as a debit card or as a credit card. If I select debit card, I provide my PIN. If I select credit card, I have to sign.
Other than this, what is the difference between the two? Does the bank handle the transaction differently?
It all comes out of the same account. The same card can be used either way, and it is deducted within a day or two. But why the two different options?
I recently opened an account with Bank of America and found a card I like, but it is a check card and I have a debit card. There are no options for debit cards, so I’m wondering are they the same thing?