Have you already gone through a bankruptcy and you are in need of some financing? You have probably found that it is difficult to get the financing you need for anything because of your bankruptcy. The worst is personal loans after bankruptcy because they are difficult to begin with. However, there is a way and here it is, Philadelphia Bankruptcy Lawyer allow you and your family to protect your home and other assets through bankruptcy protection.
Where To Apply For A Loan?
The best place to apply for a loan is at your current bank. Call or walking to your bank and tell the loan officer that you would like to apply for financing. Before you apply, don’t forget to tell the loan officer that you have filed for bankruptcy. At this point, the loan officer will tell you your options, if any are available. A second option is to apply for a loan at a small financial institution. If your savings union is connected to your employer, they could be a little more flexible than the average bank. There are also lenders that offer loans to individuals that have bad credit. You will need to go online to find a list of lenders that offer loans to people with a poor finance history, still, we suggest to get help from a financial advisor.
Recovering Your Good Name
To begin the process of rebuilding your borrowing reputation and your good name, you should start with a personal loan. A personal loan can be either secured or unsecured, and there is a big difference between the two – mainly the amount of interest that you will pay on each. Because of your new status as a borrower who has filed bankruptcy – you should expect to pay more interest on either than the normal borrower would. Keep in mind, however, that paying a bit more interest now will help build your credit back up in order to qualify yourself for bigger loans with less interest later down the road – once you have established your newfound ability to manage your credit.
If you are looking to apply for personal loans after bankruptcy, you are going to need to work on your credit right after the bankruptcy discharge. This is because most lenders will not lend to anyone with a bankruptcy discharge on their credit records for less than 2 years. Now this is not a “firm” rule and there are some exceptions, but as a rule of thumb you are going to have a much more difficult time trying to gain a loan in less than two year period. This rule virtually applies to anything credit related such as after bankruptcy car financing, after bankruptcy mortgage financing, etc.
If you have declared bankruptcy within the last decade or so and find yourself needing a loan, you have a few options available to you.
If you aren’t in dire need of financial help, you can concentrate on spending a year or two rebuilding your credit as much as you possibly can before the loan becomes a necessity.
Find a lender that specializes in personal loans for people whose credit is bad. There are plenty of them out there but you will have to agree to higher interest rates, stricter loan repayment terms and usually a longer repayment period.
If you didn’t lose your home when you declared bankruptcy and haven’t had the equity stripped from you, you might consider trying to take out a second mortgage on your home. Second mortgages are also called secured loans and they require that you use your home as collateral against the balance of the loan.
If you aren’t in need of a large loan you might consider taking out a payday loan. Payday loans usually “top out” at five hundred dollars, but they do not require you to pass a credit check.
Sometimes after bankruptcy you will qualify for a secured credit card. These credit cards come with an annual fee that is charged to your credit account. These credit cards don’t usually come with a very high limit, but they are certainly better than not having any credit at all.
Since one is bankrupt, he has few financial sources available to pay off the existing dues. He needs to find some ways in order to pay for the money he owes lenders. Some people lose their hope when it comes to borrowing money, because he might be stuck in another payment he cannot afford pay for. Good thing that there are institutions which offer personal loans after bankruptcy again.
But there are some things which one should be aware of when applying for this loan. Companies which offer personal loans after bankruptcy oftentimes offer higher interest rates. The good thing about such loans is that if ever you have a bad credit history, you can pull out your name on the list once that you have fulfilled your dues.
If you have a bad credit record the primary concern when securing a personal loan can be that the lenders might not be interested in giving you a loan. This is because due to your bad credit the lenders might take it as a risky deal as there are high chances on defaulting on the repayments. Moreover having a bad credit usually reflects a lack of trustworthiness. Due to this fact the personal loans that are available to borrowers with bad credit come along with high interest rates that make repayment more difficult.
So, on a primary level it can be said that if you are looking to get personal loan approval with a bad credit it can be a bit difficult. You can either search for alternative loan options or look for personal loans where your bad credit will not play an important part.
If you want to know what the tips that can assist you, here are a few tips that you may find useful:
- Take your transactions seriously: Unlike the way the lending process was handled a few years year back now the laws and norms are made much stricter. The lenders are very particular with the requirements and rules. So you need to take proper measures to avoid giving any wrong impression that can lower your chances of acquiring loans. If you have a bad credit try to fix them by taking your transactions seriously and controlling your expenses. It would not be a good idea to hamper your credit more as that would make the approval process more difficult.
- Know about your financial condition: If you do not have an idea of the degree of your financial state, there is no way that you can figure out how to resolve them. So before you take any steps on fixing your finances by taking a loan try to have completely knowledge about your present financial state. You need to know how much debts you actually owe and how bad your credits actually are. .
- Track your credit ratings: If you can show improvements in your credit score the possibility of getting your personal loan approved increases. In order to do so you need to keep track of your repayments and report them to the credit bureau whenever they are paid. There are also few sites where you can check the present status of your report. Note if the required changes are made by the bureau in your report. If you continue this process for quite some time your credit report will reflect positive signs which can be of help when you apply for a loan.
- Ask help from friends and relatives: An easy way to get a personal loan is to ask help from the people who care about you like your family, relatives and friends. You can look for a personal loan from these people without any hesitation. If you are lucky you may even get them at little or no interest. It will also save you the harassments that you may have to face with the banks. However do not take these loans for granted as then you may not avail the advantage in the future.
- Search for banks who know you: It would be a better idea to get assistance from banks or credit unions who know you rather than unknown organizations. Even if you have a bad credit these banks will treat you with leniency and may consider your case for approval if you had a good record earlier. You can also convince them that you will repay the loan on time as they trust you. So even if you have a bad credit record there may be chances that you can get a personal loan approved.
Note: It might sound a little difficult to get a personal loans approved with a bad credit record. However it is not an impossible task. By using some of these quick tips and by being a little prudent while implementing your plans you can expect them to get approved easily. It’s all about trying hard till you succeed.