If you have a really bad credit history and can’t get money either from banks or from non-bank lenders then the last option you can use to get a loan is to borrow money from a private lender that can be either a friend, relative or an unknown person that specializes in these kind of arrangements. First of all if you have a bad credit history and you can’t get any more loans from banks or from non-bank lenders then maybe it is time to think about your financial situation and your attitude agains money. Because why should this time be different if you were not able to pay back your debt in the past? Of course there can be any number of situations where someone can damage their credit reputation but still need an emergency loan. And only if this is your situation and you are certain that you will be able to pay back the money that you borrow then you can start thinking about ways how to get a loan from private lenders.


Loan from a friend/relative – The best way to get a small time emergency loan is to ask around to all your friends, relatives coworkers as well as acquaintances and maybe someone has some spare cash lying around and will be willing to lend it to you. But you have to be careful because getting a loan from a friend or relative can create a strain on that relationship and if you don’t pay back that money then that relationship can be severely damaged. But that can also be a good thing as this pressure that you have to pay back that money can make you overcome all your fears and can be a great motivator to stop procrastinating and start earning money to repay that debt. When you are getting into a financial deal with a person you know it is mandatory that you both sign a formal contract with all of the loan attributes written down with how much interest will be charged as well as what would happen if that loan is not repaid in time. Without such a contract there can be some misunderstandings that can lead to a heated argument and once again an erosion of that relationship. So be sure to keep that in mind when borrowing from a friend or a family member.

Loan from a stranger – The second place you can turn is to various private individuals that are willing to give out loans to strangers just like you. In the old days these private lenders were called loan sharks because they would do some physical damage to the borrower if that loan was not returned in time. In the modern world these private lenders are much more civilized but you still have to be very careful and avoid getting loans from strangers with all costs. That is why it is best to borrow first from your friends or relatives and only in a situation where that is not possible try to find someone that will be able to give you the money that you need. Usually the interest rates on these private loans are very high and the terms are very unfavorable but if you have no other choices then that is the only offer you will get.