The economic downturn has left many consumers with damaged credit. Naturally, obtaining a loan with damaged credit is more difficult, but it is possible, especially if you are willing to make some sacrifices and take a lower interest rate.First option: personal loan from a local bankBefore researching any other options, head to your bank and ask to speak with a representative. A bank loan usually offers an excellent interest rate relative to other loans available to consumers with the same credit score. If the bank offers you a secured loan, it is often in your best interest to take it, but make sure the collateral is something you can afford to lose should you default.Second options: credit cards and home equity lines of creditIf the bank wants nothing to do with you, your next best option is to use credit cards or a home equity line of credit. Credit card interest rates can exceed 30 percent, but even with the new mandates of the CARD act, they have generous minimum payments compared to other credit products. Once you are back on your feet, you can pay more than the minimum to avoid amassing large amounts of debt. Home equity lines of credit may prove useful as well, but exercise caution. Defaulting on this type of credit means foreclosure.Third options: payday loans, title loans, pawn shopsThere are a few credit products designed for those with bad credit that may work for you as a last resort. Payday loans loan money until the next payday, but the fees make their effective APR extremely high. Title loans are a loan secured against a car title, but like payday loans, the interest rates are poor, and using a car as collateral means that defaulting may make it impossible to get to work to earn more income. Pawn shops provide better APR and allow the borrower to choose his collateral to an extent, but many pawn shops have minimal regulation.The subprime credit market is full of scammers and charlatans, so do not enter into a loan contract until you have done thorough research and exhausted all other options, such as borrowing from friends, family or the local bank.