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When you take out a loan say for a car, you put the car as collateral. This is called a secured loan. When you charge something to your credit card you don't
by stonemetal 15y ago
When you take out a loan say for a car, you put the car as collateral. This is called a secured loan. When you charge something to your credit card you don't put up any collateral. This is called an unsecured loan. Government bonds are of the unsecured type so you don't get anything if they don't pay.