Definition, Meaning & Synonyms

unsecured

adjective

/ˌʌn.sɪˈkjʊrd/

Definition

Not secured or guaranteed; lacking any collateral.

Examples

Many people opt for unsecured loans because they do not require collateral.
Unsecured credit cards can be a great option for those building their credit.
Without collateral, the interest rates on unsecured loans are generally higher.

Meaning

The term ‘unsecured’ refers to a type of loan or debt that does not have any specific asset tied to it as collateral. This means that if the borrower fails to repay, the lender cannot claim any of the borrower’s assets to recover the money owed.