Do you favour secured loans over unsecured ones? The loan’s collateral transfers to the lender if you default on repayment or other loan obligations. Due to the lower risk to the lender, a secured loan may have a lower interest rate than an unsecured one. Several different secured loan types are available to you, including those that use investments, bank accounts, and insurance policies as collateral. Secured credit cards are a type of secured loan that calls for a cash deposit and are designed to help people with bad or no credit build their credit scores.    Due to the collateral you have provided, these loans are secured. Because you’re putting collateral down, these loans are typically ...