It is not easy to pick up all the pieces after a bankruptcy as well as qualifying for a personal loan, but despite the fact that it may not be easy, it is definitely not out of the question. Yes, it is possible to apply and secure a personal loan from a bank even after filing for bankruptcy.
Rebuild Your Credit by Securing a Personal Loan
Here are the steps that would lead you towards the right direction:
1. Make sure that your bankruptcy has been discharged, since lending companies will never about lend money to someone who is still in bankruptcy. Provide your lender with the appropriate paperwork to prove it that the bankruptcy has been discharged when applying for your personal loan.
2. Create a budget to know the exact amount of money that you can afford. It is imperative for you to have an idea on how much you can borrow and the amount that it will cost you to pay monthly. Just to be safe, it is better to underestimate the amount rather than overestimate and put yourself back into the same position.
3. Get the advice of a loan officer before filing for a personal loan. Getting the needed underwriting information from a loan officer will help you better understand what information the banks are looking for when they offer personal loans to individuals whose credit report shows a bankruptcy.
4. Consistently pay your bills on time and stay away from payday loan lenders. Since your bankruptcy is already discharged, you should prove that you can pay your bills on time so that your credit gets stronger. Having proof of consistent payment will favor you when it comes to qualifying for a personal loan right after bankruptcy.
5. Give yourself ample time to recover from the bankruptcy. If the time between the bankruptcy and your application for a personal loan is longer, your chances of getting approved is much better. The additional time will also give you the chance to prove that you have learned from all of your mistakes, making you a good candidate for a personal loan.
6. Make sure that you review your credit report, so that you will know what’s on it before you apply for a personal loan. Keep in mind that since the bankruptcy discharged all the debts, your credit report should reflect the same information that you have on your bankruptcy papers. It is unavoidable for mistakes to happen, so make sure that you correct everything before you submit your loan application.
As you can see, it is still possible for you to rebuild your credit and get a loan after bankruptcy. There are actually many options for you, just make sure that you follow all the tips provided above so that you will be guided accordingly. You should also remember that obtaining a personal loan after bankruptcy will not be cheap, so you should expect to pay a higher interest rate.