Certain lenders require collateral before approving a loan.
What does having collateral mean when applying for a loan?

Question

Certain lenders require collateral before approving a loan. 
 What does having collateral mean when applying for a loan?

Answer

·           It indicates a good debt-to-income ratio.

Answer

·           It refers to another person who is applying for the loan with you.

Answer

·           It means having a high credit score.

Answer

·          It's a valuable asset that the lender can take if you can't repay the loan.

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