text: For the most part it depends on what type of loan you are talking about ... home loan? business loan? equity loan??? \n\nThe main advantage is getting the money you need for whatever you need. The main disadvantage is the possibility of losing that asset if something happens that you cannot afford to continue paying. \n\nIn some cases credit unions are better places to get loans than banks but it depends on the amount and use for the money. \n\nIf you don't NEED a loan, don't take one. Why pay interest on loans if you can simply save enough to pay cash even if that means waiting 10 years to avoid a 30 year mortgage???\n\nAlways try to pay more on your loans than minimum requirements to get the debt paid off, reduce the interest, and develop a shiny credit report.