Which is better: private or personal loans?

Answer by  Sheila (147)

Personal loans are better because they are going to carry a lower interest rate. Private loans are always a rip off.

Answer by  flamiss22 (5081)

If you are able to get a private loan then that is the way to go. Hopefully you won't have the same requirement as you would on a personal loan to damage your credit. But make sure it is someone you can trust and won't change rules later on.

Answer by  John (9008)

Neither is inherently better or worse than the other. It totally depends upon the terms of each. You should simply select the one that has the best interest rate and repayment terms.

Answer by  tamarawilhite (17883)

Personal loans can offer better terms, but failure to pay hurts personal relationships. Private loans are better if you do not want to risk hurting family and close friends. Personal loans can more easily be discussed and deferred. Private loans from credit unions, peer to peer lending and through organizational IOUs are more likely to go to collections if late.