Which best describes secured credit?

A) it is backed by a valuable asset

B) it carries no risk for the lender

C) it can be easily obtained

D) it limits a borrower's debt

Answer: A) it is backed by a valuable asset

Explanation:

Secured credit refers to loan or credit that is backed by a secured payment used as collateral on the account. It involves an agreement for a lender to take a particular asset of value from the borrower if they are unable to pay back the credit. Secured credit cards are given to borrower with limited credit history.

It is backed by a valuable asset,

which is also known as secured credit.