There are different types of loans available for people who need money for one reason or another and for individuals with stellar credit, an unsecured loan can often be obtained with a very decent interest rate. Unsecured loans require no collateral of the borrower. On the other hand, someone might be interested in bad credit loans which might mean that the only way to get a loan would be through a secured option which would require of the borrower that some sort of collateral be placed as a guarantee that the loan would be paid such as a car or house.