You Can Qualify For A Personal Loan After Bankruptcy

Getting a personal loan after a bankruptcy is not really that big a deal. To discover your possibilities, four areas must be considered: ONE – Your Credit History. TWO – Real Value Property You Own. THREE – How Much You Owe Beyond This New Debt. FOUR – Time and What You Have Been Doing With It. Addressing these concerns is necessary to help you qualify for a personal loan after bankruptcy.

One – Who Are You Credit-Wise?

Before you apply for any loan, you need to understand what potential lenders see when they look at your credit report. This is especially important when you are attempting to qualify for a personal loan after bankruptcy. Every citizen is allowed a free credit report annually from the three credit reporting agencies — Experian, Equifax, and Trans Union.

You can go on the internet to avail yourself of these reports. Scrutinize the reports and make sure that any obsolete or inaccurate information is deleted or corrected. You may approach a credit repair agency, with care, they may be able to offer you a few tips to dust-up your report. Watch who you deal with, some of these firms are blatant rip-offs.

Two – What Do You Own?

Collateral is another expedient when attempting to qualify for a personal loan after bankruptcy. Even if you have gone through a bankruptcy and have found a lender willing to finance you, having collateral can make the process smoother and even lower your interest rates. Putting collateral on the line, usually real estate, reduces the risk of the lender dramatically, resulting in the aforementioned better interest rates and easier qualification. But it is not just real estate that qualifies. Just about anything of value that can be sold to cover the loan should you default will do. Discuss these collateral matters with your lender so you can best qualify for a personal loan after bankruptcy.

Three – How Much Do You Owe?

It goes without saying that you are not going to impress a prospective lender if you have just filed bankruptcy and yet have an overwhelming amount of debt once again on your books. The lender will scrutinize your income and other assets to figure out if you are in over your head regarding debt to income ratio. Make sure you understand what restrictions exist regarding this before you make any application to the prospective lender. Understand, applying to a number of lenders can damage your already poor credit report.

Some credit reporting agencies view too many applications indicating that a person is needy for cash, somewhat how drug seekers are viewed by doctors and pharmacists. So keep your applications few and far between to help you qualify for a personal loan after bankruptcy.

Four – How Long Has It Been?

Time can heal a lot of scarification. Hopefully, after having declared bankruptcy, you have to put into practice a solid habit of repaying bills and loans on time and in the proper amount. Your credit report can still play a major role. If you have experienced a time of positive payment history since your filing, your chances improve greatly for landing the loan you need. And, the further in time you distance yourself from your bankruptcy, well, the lesser the impact when you seek to qualify for a personal loan after bankruptcy.

If You Cannot Immediately Qualify for a Personal Loan After Bankruptcy

In spite of all your good works since filing for bankruptcy, you may still meet a brick wall. Just continue to focus on your credit score, continue to pay your bills on time, do not take on too much extra debt, and build up your net worth. You can find advisory programs to do all of these things by doing a web search. Much knowledge, along with ways to circumvent many onerous requirements, exists out there. Go ferret it out. Your next personal loan application will probably be approved. Bide your time. Keeping all these little things in mind will help you qualify for a personal loan after bankruptcy.

Introducing: Personal Loans After Bankruptcy

Filing a bankruptcy at the local court is not the beginning of the end for your financial world or your future. In fact, coming back after such an ordeal may be an indicator of future strength. Securing a personal loan after bankruptcy may be an ordeal, but once landing one and seeing it through on the agreed-upon terms, will indicate your ability and worthiness to go on with other folks trusting you.

First Steps to Securing a Personal Loan after Bankruptcy

After your application for a Chapter 7 bankruptcy has been approved by the courts, it may be necessary to wait two years before asking for another loan. Your income and your stability will be paramount after that time period. While this time passes, you need to show that you are no longer a high-risk to lenders. Keep all your time payments and utility bills up to date.

Boost Your Credit

While you are waiting for that magic time after which you can apply for loans on the strength of your own creditworthiness, why not try for a secured credit card and a small personal loan. You will need to put up cash, from $2-300 to get a secured credit card.

That amount will never be used to keep your payments up to date, but it will be your credit limit. These cards are an excellent way to eventually qualify for a personal loan after bankruptcy. In spite of that deposit, you will be required to make your monthly payments on time, every time. This will surely help your credit scores and credit worthiness. Only if you default on your obligation will your deposit be put towards your debt, and at the same time, the credit card issuer will put another black mark on your credit history.

Small Loans

Many folks have taken to applying for small personal loans from a variety of vendors. Often, the amount from the loan is put into a separate bank account and then payments are pulled out those accounts automatically to meet the terms of that particular loan. After doing this a few times, bankruptcy folks have seen their credit ratings slowly but inexorably rise. These too are excellent precursors to getting a personal loan after bankruptcy.

Just in Case

If you are not quite into bankruptcy, you may want to consider taking out a consolidation loan. This will pay off all your creditors and get you into a loan where you make one payment, at one interest rate, at one time of the month, to one creditor. This can make your financial life a lot easier, your payment could be a lot less than the sum of all our other payments combined. And this could be a good way to avoid bankruptcy in the first place.

Other Post-Bankruptcy Personal Loan Options

After bankruptcy, you may want to approach a local jewelry store, appliance store, or other mom-and-pop store you may be willing to give you a purchase on a monthly payment plan. Go for it but keep your payments on time and on amount. After you have successfully retired such a loan, ask the small-time lender to give you a letter of creditworthiness. This too can help you re-establish your credit.

Loans after Bankruptcy

As noted earlier, you do not fall into a dark hole never to come back after bankruptcy. Taking little steps and minding payments and making them on time, can go a long way to putting yourself into a place where creditors will once again be willing to offer your a loan. Many ways exist to find a personal loan after bankruptcy.

Securing Personal Loans After Bankruptcy: Secrets That Make It Happen

For those of us who think that bankruptcy is the end of the line, the good news is that this is absolutely not true. There are loan opportunities, with lenders willing to take the risk and grant personal loans after bankruptcy to those applicants that are convincing enough to ease their concerns.

There is a certain stigma attached to bankruptcy, with lenders recognizing the fact that a borrower escaped having to repay their debts by declaring bankruptcy. As a result, their view of the borrower is negative. So how can any lender be willing to grant approval despite bankruptcy?

Every person has the right to recover from bankruptcy. It might take a long time, but gradually the reputation of the borrower can be improved. And while a large unsecured personal loan may be elusive for as long as 10 years, baby steps can lead to complete recovery eventually.

The Rating Regime

There is no doubting that bankruptcy makes things more difficult for bad credit borrowers, but this is only because of the image that lenders have of an applicant with a recent bankruptcy ruling against them. Getting personal loans after bankruptcy is a challenge but there are ways to improve that image.

The fact is that lenders look at other factors when considering a loan application, and as long as these areas look strong, then the chances of getting approval despite bankruptcy is greater than they might have seemed.

These other considerations include the income and employment status of the applicant, as well as the extent of their current debt. If these factors are in good order then the application for a personal loan can be viewed positively. However, lenders cannot help but be cautious, and are unlikely to approve any large loan for quite some time.

Method In Their Madness

Of course, with the degree of risk involved in lending to someone with a bankruptcy ruling against them, it seems foolish for any lender to grant loans to them. But there are reasons why they are willing to grant personal loans after bankruptcy.

First of all, statistics show that those who have been declared bankrupt are eager to regain a positive financial status. This means that the applicant is highly motivated in meeting the repayment schedule, so granting approval despite bankruptcy is not such a major gamble.

Also, laws state that those who have been declared bankrupt cannot seek bankruptcy again for at least 6 years after the ruling. This means that the borrower is unable to escape any debts for a set period of time. The investment, in the form of the personal loan, is therefore protected to an extent.

Securing Approval After Bankruptcy

Improving your chances of getting approval on a personal loan after bankruptcy comes down to a few simple steps. Getting a secured credit card provides an opportunity to begin to rebuild a credit reputation. These cards offer limited credit, but just enough to provide a positive impression in the updated credit report.

Providing a cosigner as part of the application is a huge boost to the chances of getting approval despite bankruptcy. This is because the cosigner guarantees the monthly repayments will be made. As a consequence, the interest rate falls too, making the loan all the more affordable.

Searching for online lenders is likely to end happily, with online lenders recognized experts in bad credit lending. This means the terms of the personal loan are more suitable and the chances of approval are greater.