If you need a loan and the current financial crisis has dinged your credit score you are not alone. Personal loans for people with bad credit are becoming harder to find. This is not necessarily a bad thing. The loose lending practices of banks and other institutions is the reason for the current situation. The days of getting a loan for simply having a pulse are over. Today, people with bad credit are turning to family, payday loans, and online lending communities to obtain short term cash.

Payday loans can get you by when you need cash fast. They do charge higher interest rates; however, if the money is absolutely necessary there may be no other alternative. Also, the rates they charge are based on annual rates and appear higher than they actually are. Over a short amount of time the fees are not really that bad. Payday loans are a great option for many because they are relatively easy to obtain. Many companies only require proof of employment to obtain the loan. Additionally, there are many companies that make online payday loans to make the process even easier.

Another source for cash is friends and family members. Many people are afraid to ask family for money, but it can be easy if you treat the transaction in a professional matter. Make your case by explaining that you are going to get the money from a lender no matter what; however, you are willing to let the family member of friend profit from the transaction instead. With today's low interest rates, many people would jump at the chance to earn anywhere from 9 to 12 percent on their money and you would pay even more going to a payday lender.

Finally, great new options for obtaining money with bad credit are the online lending communities. Lending platforms such as Prosper and Gather allow people to pool their money and lend it to others for a higher return on investment. These lenders can lower their risk by lending to several different people. These platforms allow you as the borrower to explain why you need the money and what it will be used for. Your credit score will be posted for lenders to see and make their decisions. However, even with a poor credit score you can obtain a loan at a higher interest rate.

So there are options for getting unsecured personal loans for people with bad credit. Payday loans are easy to obtain, but they will likely cost the most. Online lending communities are great if you can give a compelling reason for needing the money. Finally, your best option for getting a loan would be friends and family.