MoneyU

This is debt that is not guaranteed by collateral, therefore, no assets are committed in the event of default. If the issuer is unable to collect on the loan, its value is lost. Most credit cards are unsecured. As the Cardmember's promise is the only guarantee, credit card issuers require more information regarding income and credit history than with a secured loan.

A loan based on a consumer's promise to pay, without savings or other collateral as a guarantee. Sometimes called a signature loan.