Luckily, if you're short on collateral and have had some credit setbacks, there are a few sources that might be able to help you, and they might be right in your neighborhood.
Credit unions are overlooked by consumers, which is unfortunate because they offer great rates on loans and other financial products. And since credit unions only serve those who are members, they typically offer good customer service.
Small Local Banks
A local bank with strong ties to the community are a good place to get a loan, and naturally it helps if you have had an account there for a period of time and know the employees. You'll still have to abide by all regular bank rules and regulations, as well as be financially fit to obtain a loan, but you might find it easier because of your past association and history with it.
This type of lending is gaining in popularity because it is easy and accessible to almost everyone. Prosper.com is one of the largest players in this market. Simply visit the website and sign up, and as a long as you have a credit score of about 640 you can submit a request for a loan in an auction format and watch as people bid on loaning you the amount of money you need at a low rate.
Family or Friends
Loans and family or close personal relationships do not go well together, but if you do make such an arrangement here are some things to keep in mind. Both parties need to create and sign a document that spells out the terms of the loan, and then you should adhere strictly to those terms and pay off the loan as soon as possible.
If you lend money to a family member or friend you should consider it a gift and be prepared to let it go---even if you have a written agreement by which you are to be repaid. That way, if they default and fail to pay you back you won't be disappointed and it won't affect your relationship. If they do pay you back, consider it a bonus. Also, never loan money to others that you have already earmarked for other uses. For example, never loan money that you have set aside to pay bills or other obligations.