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A bank is not the only source of loans. In fact, in many ways, traditional lending institutions are far from being the best lending sources around. This is especially true when an applicant has a poor credit history. But when seeking a ,000 personal loan with bad credit, what are the alternatives worth going to?

There are several options to consider, but the three most popular are online lenders, family lenders and salary advances from an employer. The truth is that securing loan approval, is more difficult with banks because of their defensive lending policies, designed to protect them from major losses.

But with so many honest borrowers affected badly by the economic crisis, a poor credit rating is no longer an accurate reflection on risk. Alternative lenders know this, so are willing to grant personal loans at competitive rates.

Loans From Family Members

Probably the most affordable loan, borrowing from a family member or friend is the most informal and flexible funding option there can be. What is more, the approval chances are extremely high (as long as the family member has the cash to give), and interest is not usually charged. What this means is that getting a ,000 personal loan with bad credit is pretty easy.

An advantage is that if any problems do arise with meeting a repayment schedule, then is it pretty easy to renegotiate the terms. And since the lender knows the applicant extremely well, securing loan approval is only a formality. However, it is always advisable to write the terms down and have the relevant parties sign it, to ensure there is no confusion.

It is very difficult to see where any problems with this source of personal loans can lie but, of course, everything depends on the individual having ,000 lying around to grant as a loan.

Loans From Online Lenders

They already have a reputation for providing unbeatable loan deals, so online lenders are probably the second-best option. Applying for a ,000 personal loan with bad credit is not guaranteed to end in joy, but with competitively low interest rates and flexible repayment schedules, they are more likely to be more affordable than those offered by traditional lenders.

The terms are good because online lenders tend to specialize in loans to bad credit borrowers, so the loan packages are designed to accommodate the challenges the borrowers typically face. And with the structure of these loans suiting bad credit borrowers so well, securing loan approval is much more likely.

Still, there are criteria to meet, with applicants needing to prove their age, citizenship and that they have a reliable source of income. Usually, an applicant needs to have held their full-time job for at least 6 months, and have an active checking account. Then a personal loan can be confidently applied for.

Loans From Employers

A third alternative to approaching traditional lenders, is to go straight to the source of your income. Applying for a ,000 personal loan with bad credit involves convincing the lender that repayments will not be missed. Since repayments come from a monthly salary, borrowing from an employer means the repayments can be deducted from the paycheck, and never be missed.

Basically, this is a form of cash advance, but securing loan approval from an employer usually means a nominal interest rate is charged. This means the monthly repayments are lower than normal, thus saving the borrower money.

But keep in mind that this kind of personal loan is not registered with credit agencies, so a borrower can never see their credit scores improved.