Unsecured credit is credit that you receive where there is nothing to back it up or no security provided for the credit, examples of unsecured credit are;
- credit cards, company credit card cards and gas cards
- utility bills like electrical, water or gas bills
- cell phone or telephone bills
- personal loans, rent and medical bills
- student loans
Unsecured credit is credit that was extended without having collateral given for the debt, like your home mortgage or car loan. With unsecured debt, the debt holder cannot take back property when you stop paying the debt, the creditor has to go to court and sue you for the cash value.