Just because the bank doesn’t want to give you money doesn’t mean you don’t deserve it, right? After all, what’s a credit score but a dumb number used by imperialist fascist pigs (aka “the man”) to keep you down?
Then again, maybe you’ve just fallen on hard times. Maybe you’re just starting out, and haven’t built up much of a credit record. There can be a number of reasons you might want a personal loan but not qualify for one through traditional means.
Payday loans suck
There are always payday lenders, but they want their money back pretty much right away. You can keep taking out successive payday loans, but then you quickly run into a situation where you’re paying more for the ongoing loans than the amount you borrowed in the first place.
What are friends for?
They’re for borrowing money from, that’s what. If you’ve got friends, you’ve got a way to get a personal loan. You’ve got to do it the right way, though.
You want to start by telling your friend why you need the personal loan. Tell them exactly what it’ll be spent on, and what you hope to gain from the loan. You also want to ask for a specific amount of money. Don’t tell them you need “whatever they can spare” because they might not be able to spare what you need. Then, you’ll have a personal loan without the money you need.
Keep it real
Make it a real loan. You should draft a loan agreement, too. There are templates available online or at your local office supply store. Sign an actual promisary note. It’ll help your friend recognize you truly intend to pay it back, and even give them legal recourse if you don’t.
Yes, you should still pay interest to your friends. Neither side wants to ask too much, of course, but you should try to negotiate an interest rate that’s comparable to one you would get at a bank (if you weren’t such a deadbeat).
Keep to your payment schedule
Agree on a payment schedule and keep to it. If possible, get ahead of your payment schedule. No, this isn’t going to help you in the way that it would if you were paying early on a car loan, but it will give you some serious friend points.
Photo via cogdogblog