Any person can obtain a personal loan from different sources. Terms and interest rates vary depending on the institution. But if you have a not-so-impressive credit score, it can be difficult for you to secure a loan. Nevertheless, here are some routes you can try to get one.


If you cannot get a loan on your own, you may opt to tap a cosigner. Lenders prefer borrowers with cosigners as they can chase that person if you fail to make payments on time. Yes, they are at risk if you delay payments or default on your debt. If you are turning to your loved ones, this is a better option than asking them for money outright.

Credit Union

Head to a local credit union in case a conventional bank rejects your application. These nonprofit organizations cater all types of clients. Instead of generating money, they focus their efforts on serving members. Credit unions offer more generous terms than banks.

Family and Friends

A classic option, indeed. We are all advised not to borrow money from somebody we know well, as a lot of emotional baggage is linked to it. But if you still wish to take some money from them, do it the right way. Treat it like a business arrangement. Put it in writing, pay interest close to the same amount as you would at a financial institution, and pay on time.

Online Bank

Internet banks need not to pay the overhead and other high costs unlike traditional institutions, enabling them to offer lower rates and accommodate those with bad credit history. However, some of them may not offer all the comprehensive financial services, and not all direct banks have their own ATM machines.

Peer-to-Peer Lending

Any person can borrow from peer-to-peer or individual lenders. Lending Club and Prosper are some of the best sources for searching lenders. Just check their website, indicate the details of what you need, and wait if anyone will be willing to make the loan. They also check your credit rating, but they also serve people with bad credit scores.

Your House

Assimilate the terms on a home equity loan or a home equity line of credit to the best rates you can find on a loan, if you own all or a portion of your house. You can qualify for a loan if you are pledging your property as collateral and have a stable income to make payments.