Which is true about unsecured credit?

The statement that unsecured credit does not require collateral is accurate. Unsecured credit refers to types of loans or credit that are not backed by any specific asset as collateral. This means that the lender does not have the right to take possession of property or other assets if the borrower defaults on the loan. Instead, unsecured credit is granted based on the borrower's creditworthiness and ability to repay the debt.

When it comes to the other options: unsecured credit does not necessarily offer lower interest rates compared to secured credit; in fact, it often has higher rates due to the increased risk taken by the lender. Additionally, unsecured credit is not limited to home purchases; it can be used for various purposes, such as personal loans or credit cards. Finally, there are no restrictions on who can use unsecured credit based on individual characteristics; rather, it depends on the creditworthiness and financial history of the borrower. Thus, the characteristic of requiring no collateral accurately captures the essence of unsecured credit.