What Is Default on a Loan
Loan default is more serious than a routine late payment. It can trigger stronger lender action and create long-term financial consequences.
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Loan default is more serious than a routine late payment. It can trigger stronger lender action and create long-term financial consequences.
Collateral helps reduce lender risk by tying the loan to something of value. For borrowers, that added access can come with added risk as well.
The main difference between secured and unsecured loans is whether property or another asset backs the debt. That difference shapes both lender and borrower risk.