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 borrowing that does not require collateral. In this case, using a credit card to purchase gutters is an example of unsecured credit because the credit card debt is not backed by any physical asset. In contrast, the other options involve secured credit, where the loan is backed by collateral such as a vehicle or home.