Creditor may be ___ types.

A. 3

B. 2

C. 4

D. 5

Detail of Mcqs:

There are several types of creditors, such as real creditors, personal creditors, secured creditors and unsecured creditors.

1. Real creditors: A real creditor is a financial institution, such as a bank or credit card issuer, that has a right to be repaid.

2. Personal creditors: These are friends or family you owe money.

3. Secured creditors: These lenders have a legal right — often through a lien — to property you used as collateral to secure the loan.

4. Unsecured creditors: A credit card issuer is a good example of this type of creditor. You may owe money, but it’s unsecured debt, meaning you haven’t agreed to give the creditor any property — such as a car or home — as collateral to secure your debt.

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