Ok, I was thinking of getting a loan of 430USD in BTC from btcjam.
From what I see, seems like common sense, is that you give btcjam more accounts & passwords? Your loan limit increases? Is this how this works?
What is stopping btcjam from running with all info? Keeping the info and never disposing of it? How secure is the info? What happens if they have a breach?
They are doing that because information carries more power and are worth more than you can imagine. (Whole idea of Facebook is build on that principle)
If I were you I would never try to get loan from btcjam, and instead seek it in a different place. If you have valid collateral you could always ask for money in bitcointalk's lending section.
what you said is perfect, giving full details and then getting loan is just like getting loan from bank through fiat currency, here in the lending section their are so many users ready to give you loan if you have a good and correct collateral, with less interest.