You will usually have to put something up as collateral so that the bank has some recourse if you don’t pay back the loan.  This helps you if you are the one getting the loan because you will have motivation to pay back the loan since you won’t want to lose what you put up for collateral.  This works for most banks and most consumers, but it doesn’t work for everybody.

If you’re a renter, and if your car isn’t full paid off, then this may not be the best option for you since you have nothing to put up.  Since you can’t get a loan, you can’t build up your credit, so it’s almost a lose-lose situation for you. » Read more: All About Tenant Loans