What context can I use each word in?
Learn when and how to use these words with these examples!
collateralized
Example
The bank required collateralized assets to secure the loan. [collateralized: adjective]
Example
She used her car as collateralized for the loan. [collateralized: verb]
guaranteed
Example
The company guaranteed a full refund if the product was defective. [guaranteed: verb]
Example
He received a guaranteed income for the next five years. [guaranteed: adjective]
Good things to know
Which word is more common?
Guaranteed is more commonly used than collateralized in everyday language. Guaranteed is a term that can be applied to various situations beyond finance, while collateralized is more specific to financial arrangements.
What’s the difference in the tone of formality between collateralized and guaranteed?
Both collateralized and guaranteed can be used in formal contexts, especially in financial and legal settings. However, collateralized may be considered more technical and specialized compared to the more general usage of guaranteed.
