Bitcoin Forum

Hello dear wonderful community,
i am curious as how does a loan with the account as collateral works?
if i apply for a loan, and use my account on bitcointalk as collateral, how can i contact the lender as my account was 'seized' in the lender's hand
do i create another one?

A non-collateral loan is really not encouraged but there are people who gives loan to trusted users even without a collateral. You must have atleast an established reputatio to get one.
If you use a bitcointalk account as collateral its value must be atleast 120% greater than your loan to cover for the coins just incase you default. You can create another account to talk to the lender or have any other way of contacting the person so you can have a communication.

Yes, I agree with jacee. If your account has some value (not newbie) there is a possibility to use escrow. Escrow will keep your account for time period of loan.

you give the account to him, prior a sign of your address, if he is trusted of course, otherwise there are escrow

and then you use a newbie account for the time being, until you get your back

First, your account must be have a value, member or above is worth, but depends on how much you want to loan.
Use escrow for better trade.
And be a honest guy.

To answer your question:

Q)how does a loan with the account as collateral works
A)you give your username/password to either the lender, or a trusted thirth party (escrow). If you pay back the loan, you get your account back. If you fail to pay back, your account is usually sold.
Your account needs to be worth at least 120% of the loaned amount + intrest.

Q)if i apply for a loan, and use my account on bitcointalk as collateral, how can i contact the lender
A)you guessed correctly, you just make a new account, and let the lender know about this account before closing the deal.

Thank you everyone! now i know the process more clearly

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