Credit Cards

This article is about the payment system. ForThe Price Is Right game,see Credit Card(pricing game).This is often doneto secure a lower interest rate, secure afixed interest rate or for the convenience ofservicing only one loan.Debt consolidationcan simply be from a number of unsecured loansinto another unsecured loan, but more oftenit involves a secured loan against an assetthat serves as collateral, most commonly ahouse. In this case, a mortgage is securedagainst the house. The collateralization ofthe loan allows a lower interest rate thanwithout it, because by collateralizing,the asset owner agrees to allow the forcedsale (foreclosure) of the asset to pay backthe loan. The risk to the lender is reducedso the interest rate offered is lower.