Secured Borrowing

Unsecured borrowing is when no security is taken by the lender. The bank or finance company offers you a loan if they are confident you will be able to repay it.

For example: a loan for a holiday. Your bank may be prepared to give you a loan for a holiday because it is confident that you have a good credit record and normally have surplus income to fund repayments.

Examples of unsecured borrowing:

  • Personal loans
  • Overdrafts
  • Credit cards
  • Student loans
  • Store cards

Further information

For impartial advice consult an independent financial advisor or telephone CCCS on 0800 138 1111.