# unsecured

/ˌənsikˈjʊɹd/ (US) · /ʌnsɪkjˈɔːd/ (UK) · CEFR C1 · Adjective

Source: https://englishreference.com/word/unsecured
Updated: 2026-05-08

## Definition

describes a loan or debt that is not protected by an asset like a house or car. If you cannot pay the money back, the lender has no specific property to take from you.

For teachers: referring to a loan or debt that is not backed by collateral. Often used in financial contexts to describe credit that relies solely on the borrower's creditworthiness.

## Examples

- Credit cards are a common type of unsecured debt.
- Because the loan was unsecured, the bank charged a much higher interest rate to cover the increased risk.
- The company's balance sheet showed a significant amount of unsecured liabilities, making it vulnerable to a sudden downgrade in its credit rating by major agencies.

## Usage notes

- Typically used attributively before nouns like 'loan', 'debt', or 'credit'.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.