The best describes secured credit is backed by value asset.
What is secured credit ?
- "It generally refers to credit that requires you to pledge something of value in order to secure the loan."
- "A secured line of credit is guaranteed by collateral."
- "It has higher credit limit."
- "An individual or any business can obtain a secured line of credit using assets as collateral. "
- "If the borrower defaults on the loan, then lender can seize and sell the collateral to recoup the loss."
- "A common example of the secured credit is a home mortgage or a car loan. The bank agrees to lend the money while obtaining collateral in the form of the home or the car."
- "Having secured the debt, your creditors may have the right to take possession of the collateral if you don’t pay back the loan. For example, most standard types of mortgages and auto loans are considered secured credit, because the loan holder can take possession of your house or car if you don’t pay as agreed."
From the definition it is clear that backed by a valuable asset is best described secured credit.
Hence, A is the correct option.
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