Glossary Letter: U

An unsecured loan is a type of loan that does not require collateral, relying solely on the borrower’s creditworthiness and promise to repay. Common examples include personal loans, credit cards, and student loans. Because these loans pose a higher risk to lenders, they typically come with higher interest rates compared to secured loans.  Evaluating the… Continue reading Unsecured Loan

Underwriting is the process by which lenders assess the risk and creditworthiness of potential borrowers before approving a loan application. This crucial step involves evaluating various factors, including the applicant’s credit history, income, assets, debts, and employment status. Underwriters also consider the purpose of the loan and the value of any collateral offered. The goal… Continue reading Underwriting