Question

The main difference between secured and unsecured loans is that the secured loan ____.

A. offers protection against identity theft
B. includes a pledge of collateral
C. has a higher interest rate
D. requires a cosigner

Answer 1

includes a pledge of collateral

Answer 2

The main difference between secured and unsecured loans is that the secured loan includes a pledge of collateral

if you are unable to pay off the loan, the lender has the legal right to the collateral you have pledged(what ever it may be) and may be able to sell it to pay off the loan.