Er... what are unsecured loans?
Where do you see this?
In finance and banking-related articles.
What does it mean?
The term refers to money that you can borrow without having to put up an asset such as a car or property as collateral.
Credits cards and personal lines of credit are the most common examples of unsecured loans. Other examples are education and renovation loans.
Why is it important?
Such loans usually come with higher interest rates as this is a riskier business for lenders, who may find it harder to recover the loans if you do not pay up. Lenders check your credit history to find out if you are a high- or low-risk borrower, so it would be harder for you to get this type of loan if you do not pay your bills.
So you want to use the term. Just say...
"It was very difficult to get an unsecured loan from the banks during the global financial crisis, so I had to cut down on my luxury watch purchase."
Invest, The Sunday Times, October 20, 2013, Pg 42