Unsecured personal credit cards are loans that are approved without the need for collateral. Instead of pledging assets, borrowers qualify based on their credit history and income. Lenders do not have the right to take physical assets (such as a home or vehicle) if borrowers stop making payments on unsecured loans.
Credit Cards as a form of Unsecured Loan
Unsecured personal credit cards are also known as “signature loans” because your signature on the loan agreement is all that you bring to the table. You promise to repay, but you don’t back up that promise by pledging collateral. Credit cards are a common form of unsecured loan. Even though you might not think of them as “loans,” you borrow money when you spend with a credit card.
Benefits of an Unsecured Credit Card
Apply now to begin reaping the benefits of an unsecured credit card for personal use from Deliver Capital!