Which describes an example of using unsecured credit?Which describes an example of using unsecured credit?
Someone buys new gutters for a home with a credit card.
Someone buys a new vehicle with a loan from a car dealer.
Someone buys a new home with a mortgage from a bank.
Someone buys a new boat with a loan from a boat dealer.
The correct answer is: Someone buys new gutters for a home with a credit card.
Explanation: Unsecured credit refers to loans or credit lines that do not require collateral. In this case, using a credit card to buy gutters means borrowing money based on creditworthiness, not securing the loan with an asset. The other options involve secured loans, where the asset (vehicle, home, boat) acts as collateral for the loan.