In the current financial climate, borrowing money can be difficult. Lenders have tightened their eligibility criteria, so it's a lot harder to qualify for an unsecured loan. Although it's in the interests of the banks to lend money to new and existing customers, they're now far more selective than used to be the case.
You can still qualify for personal loans with less-than-perfect credit. However, as your credit score drops, the cost of borrowing rises. Lenders use a strategy known as personal pricing, so the APR reflects the credit profile of the customer. Flat-rate lending is no longer considered to be efficient or fair.
Person-to-Person Lenders
Peer-to-peer lenders, such as Prosper.com and Lending Club, are an intermediary or middle man. Investors, often regular people who are looking to achieve a better return on their savings, offer you the chance to take out a low-rate unsecured personal loan.