Consumers with poor credit, limited employment and few financial assets can often obtain loans through payday or vehicle title loan providers. However, these loans often include multiple types of fees and high interest rates.
Consumers with no other options might also ask a friend, family member or employer for a short-term loan. Personal loans from acquaintances require no credit checks or other obstacles.
Alternatively, borrowers might ask a friend or family member to co-sign with them on a loan. A co-signer guarantees the loan and becomes a borrower just like the principle. Borrowers who take this route should resolve to pay back the loan on time or they risk hurting their loved ones' credit.
Some credit unions offer loans to high-risk borrowers. This is an attractive option for consumers who are already members of the credit union or who are entitled to membership.