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.
Related posts:
{ 3 comments… read them below or add one }
We have a mortgage product for borrowers with discharged BK (even foreclosures). If a purchase transaction this would require 35% down on the property. If a refinance 50% equity is required. Credit scores are not an issues as long as there is nothing major going on currently…so BK must be completed (foreclose completed as well). This is essentially a stated income loan (or no doc loan). Rates are very good and competitive, availability is state to state, count to county.
Dear Sir,
I have been in a relationship with a man who needs my help for a period of 4 months now , He’s an American Citizen and is currently stuck in Kualar Lumpur Malaysia. He was to tranfer money into my account after I sent him the Transfer money as well as his Family in the USA. He is an Engineer and was working in the country of Malaysia. He ran out of money and did not have the money to activate his credit card over there. Now the Taxation office has stopped the transfer that i was to recieve until he pays the $9,422.51 . I have been trying to get a personal Loan to help him but unfortunately I have only just been discharged from bankruptcy on the 16th June 2009. Could you please advise me on who would give me a loan for this amount for a period of 2-4 days only. I don’t have any collateral at all , I work casually at Kmart and recieve centrelink Benefits as well . I have 2 dependants aged 12 and 15. Can you please help as I am at a lost cause.
Thank you for your submission to A Carnival for Saving and Making Money hosted by Living Simplistically!