To add to what has already been said, "loan sharks" (high interest, short term loans) are often just as happy to take whatever collateral you put up to secure the loan. $500 payday loan, 600% APR (not an exaggeration), and maybe you put your car note down as collateral. If you have a 30 day loan term and can't come up with the roughly $750 in a month, they just bought your car for $500.