Question

What do you understand by collateral and home is it useful in a credit situation
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Answer 1

Answer:

property or something valuable that you agree to give to somebody if you cannot pay back money that you have borrowed

Answer 2

Answer:

Collateral is an asset that a lender accepts as security for a loan. If the borrower defaults on the loan payments, the lender can seize the collateral and resell it to recoup the losses.

                                                       (OR)

collateral. 1. ... Lenders have the legal right to seize and sell a collateral if the borrower cannot pay back the loan as agreed. Sometimes the asset being financed (such as accounts receivable, inventory, machinery) is itself used as a collateral; in home mortgages the property being bought serves as a collateral.

Home is the place where one lives permanently, especially as a member of a family or household.

Explanation: