Which type of loan is better for you is determined in large part by lenders and the reason you need the loan. And that leads us to the main advantages and disadvantages of secured and unsecured loans. A benefit of secured loans can be that if you have a weak or unproven credit history, secured loans can be easier to qualify for since they mitigate the risk for your lender. The arrangement also provides another benefit: secured loans can have lower interest rates than unsecured loans. If you’re in a position to repay your loan so you don’t lose your collateral, a secured loan can be a money saver. Learn more about the potential benefits of personal loans.