So you’ve filed for bankruptcy, but you need to take on a new loan. What to do? First of all, be encouraged by the fact that obtaining a personal loan after bankruptcy may actually even improve your credit rating. That’s because a personal loan after bankruptcy will help you rebuild your credit – as long as you are vigilant in paying it off during the proper times. That’s why it’s important that apart from knowing where to get a personal loan, you should also compute for how much personal loan you can manage. With that essential reminder being said, here are some helpful steps for obtaining a personal loan after bankruptcy:
- Make sure that your application for bankruptcy has been finalized. Do know that most financial institutions will not entertain your request for a loan if your bankruptcy is still being processed. It’s also important that you do not mislead the loan officer about the details of your bankruptcy, because if you are found out, there will be a slimmer chance that your application will be approved. The best thing to do is to be honest and forthright, and to say that even if you’ve made bad financial decisions in the past and you have learned from your mistakes. Be prepared to give some details about how you will manage your finances and how you will be able to pay off your loan in case it gets approved.
- Consider taking out secured loans, or payday loans. A secured loan is a type of loan that requires collateral (such as a house or a car). While you haven’t completed payment, the lender will hold the deed until the loan is paid off.
- If you don’t require a large loan, you may instead opt for a payday loan, which is usually easily obtainable as long as you are currently employed, you have an active bank account, and you expect regular paychecks – no credit reports required. Do know, however, that there are usually high interest rates attached to these types of loans. Some of the top-rated payday loans include the following: Team Quick Cash, 100 Day Loans and Think Cash. Check out their websites for more details and make sure that you compute who offers the most affordable rates.
- Try to wait. Remember that bankruptcy will stay on your credit records for 10 years; it’s best that you apply for a personal loan at the latter part of this time period.
- Shop around for the best rates on bankruptcy lenders. Yes, there is such a thing as bankruptcy lenders. Realistically speaking, it’s highly unlikely that a regular financial institution will approve your loan application. It’s best that you try lenders that specially cater to those who have bad credit or who have declared bankruptcy. You could find listings of such lenders at legalhelpers.com. Make sure that you don’t only compute for the interest rates offered: you should be sure to read the fine print and find out if the loan comes with additional fees.
Remember, no matter how bad your financial situation is, there is always
hope as long as you take the time to research on your best options.
Make sure that you strategize how you could pay off your loan if you
really need to apply for one, and once you do get approved for a loan,
make sure that you are able to follow the terms and conditions. Paying
off your personal loan properly will help you reestablish your credit
rating. Good luck, and hope this helped!