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.