As a borrower, you must feel every loan that you get from somebody else as the most important business transaction. That means you should have formal documentation and it should be legally recorded in order to prevent any problems in the future. You must have a written contract which should have the rate of interest and the loan repayment term especially if you are going for bad credit loans. You can find a useful sitehere like the mercurynews.com that gives you more details including the consequences in case you are unable to repay the debt in the given time.
Friends and family will not put you through the stringent qualifying process and perhaps be more generous when it comes to deciding the rate of interest or if they charge any at all.
Nevertheless when you want to borrow a loan from a friend or a family member you must do this with a lot of clarity. When you don’t repay the loan to a close associate or a relative it can poison the relationship and cause you a lot of fallout that can go beyond getting a bad credit score.
At the end of the day if you want to get a bad credit loan it will be a futile effort if you continue to showcase a pattern of behaviour that is irresponsible. It can include anything from rapid impulsive purchases to budget constraints. So when you get the loan you must turn your financial position and make accountability your priority.