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Secured accounts are secured by a deposit. The bank would then extend a credit line - usually an amount from 100% to 200% of the deposit. For instance a $500 deposits would generally get you a $500-$1000 credit line. You likely will earn interest on your deposit and be considered for an unsecured line after a certain amount of time.

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Q: What are secured and collateral accounts?
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Related questions

What does the concept of secured debt mean in finance?

Secured debt is a debt that is guaranteed by the use of collateral. If the debt is not repaid, the creditor has the right to take the collateral from the borrower.


What does Secured Home Loan mean?

A secured home loan is a home loan where there is a security or collateral used to secure the mortgage. Often times the home itself can be used as collateral to lower the interest rate and monthly payment. By using the equity in the house as collateral for the secured loan.


Ways you could make a loan secured?

collateral


What is the security for the repayment of a secured loan called?

Collateral.


What is the difference between a Secured Promissory Note and a Promissory Note?

A secured promissory note has collateral attached - usually an item/items of value or a deposit. If the note is not fulfilled, the creditor can seize the collateral as payment. An unsecured note has no collateral attached.


What are Asset loans?

Asset-based lending is lending the money using an agreement secured by collateral. An asset loan or line of credit can be secured with equipment, inventory, accounts receivables or equipment, and Non-liquid assets such as equipment are preferable to liquid collateral. Asset-based lending is used by small and medium-sized businesses to meet immediate cash flow requirements.


What exactly are accounts receivable loans?

Basically, a business will use it's receivables as collateral on a line of credit. Many times banks will give better rates on this type of loan because it is secured.


What does secured loan?

A secured loan is a loan in which the borrower declares an asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who issues the loan. The debt is thus secured against the collateral - in the event that the borrower defaults on the loan, the creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower.


What happens when two secured parties claim security interests in the same collateral?

When there are two secured parties claiming security interest in the same collateral, the creditor that is perfected (having filed a financing statement) will have priority over the interests of an unsecured creditor or unperfected secured party


How is secured lending different from unsecured lending?

Secured lending differs from unsecured lendings in a number of a ways, although there is one big difference between them. A secured lending is such named before the lendee puts up collateral against the debt to the bank. An unsecured lending has no collateral.


What is a loan on which the goods purchased with the loan serve as a type of secured loan.?

collateral


Is a car secured property in bankruptcy?

If there is a loan which used the car as collateral, yes.