Get a Loan After a Bankruptcy

In the past filing for bankruptcy was the kiss of death. No one wanted to take the risk of giving credit to those who had filed recently because of the increased chances of re-filing in the future. Today’s economic climate and forgiving creditors have made it easier than ever to get personal loans after bankruptcy, automobile loans after bankruptcy, student loans after bankruptcy, and even guaranteed loans after bankruptcy.

Where to Start

Depending on the state where the bankruptcy was filed and the type of filing, a bankruptcy can stay on a person’s credit report for seven to ten years. Luckily it only takes about 2 years for a person to qualify for low interest rates on credit cards and lines of credit. Many can even receive guaranteed loans after bankruptcy as long as they play their cards right.

The first step in getting loans after bankruptcy is to reestablish your credit. The thing about credit is that you can’t get it until you have established a credit score: the easiest way to do this is to apply for low credit limit credit cards that report monthly to the credit agencies. Doing this insures that those looking at your credit score in the future know you learned from your bankruptcy and that you are paying off your debts as promised. Another helpful piece of advice many credit counseling services give is to save money in your bank account. When creditors go to approve loans before or after a bankruptcy they look into your bank account to see that you have a steady income and a means to pay your debts. These two things will put you on the road to getting loans after bankruptcy.

What You Can Get After Bankruptcy

Once you have reestablished your credit it is pretty simple to get a loan after bankruptcy but your rates might not be as good as someone who has never filed for bankruptcy. While you might have great credit currently that bankruptcy will stay with you. That can put a damper on the amount of your loan or where you can get the loan. You should not let that stop you though. There are plenty of companies out there willing to lend to those with recent bankruptcies even if they have not been discharged.

Auto Loans – Automobile loans after bankruptcy are some of the easiest loans to secure. The reason behind this is that not every lender follows the same guidelines for approving credit. Depending on the amount of the loan and the lender you may be able to get a loan with no problem. Of course having a significant down payment will also increase the likelihood of getting approved for a loan after bankruptcy.

Home Loans – Home loans after a bankruptcy may be a bit harder to secure than a loan for a car. The reason behind this is that the terms of the loan as well as the principal amount are so much larger than other types of loans. You can still get a loan for a home after bankruptcy but your interest rate may be significantly higher and the terms of your loan may change after the introductory period is over. Establishing a good rental history with timely payments and references may also help your case.

Personal Loans- After bankruptcy personal loans are perhaps the trickiest of all loans to secure because they can be used for anything. Guaranteed loans after bankruptcy are generally given to applicants who have a specific reason for taking out the loan. Unless you can prove that you need the loan for something specific your chances will be slimmer for being approved.

Student Loans – Student loans after bankruptcy are different than other types of loans after bankruptcy, especially for those who had school loans prior to filing. Why is this? What many people do not know before they file a bankruptcy is that their school loans will not disappear. Since school loans are funded by the federal government in most cases they must be repaid by the borrower. Since the school loans do not go away with a bankruptcy lenders are less likely to give a new loan to someone with an existing defaulted amount.

What To Do If You Cannot Get A Loan

If you cannot get personal loans after bankruptcy or guaranteed loans after bankruptcy do not give up. It might take some time to prove yourself to would be lenders. You wouldn’t want to lend money to a friend or family member who has borrowed money in the past and not paid you back so why would a lender give you money? It’s not that the lender is trying to keep you from owning a home or purchasing a vehicle. They are just trying to keep their losses at a minimum.

For those that have filed for bankruptcy and need a loan there are ways to get approved. Consider seeking out a close friend or family member and asking them to cosign for your loans after bankruptcy. Some might not agree because they are afraid of getting stuck with the bill, but if you can prove to them you are committed to staying out of debt they might be more likely to cosign on your next loan.

Where to Get More Info

More information for getting loans after a bankruptcy is available online. While consumer credit counseling services can certainly help you get back in the game they often charge high fees for the same information you can find online for free.

www.rentafterbankruptcy.com – Whether you are looking for a home to purchase, a house to rent, or an auto loan this site provides some great advice to dealing with the post bankruptcy loan search.

www.afterbankruptcy.org – Following a bankruptcy it can be hard to navigate the waters. This site along with their seminars can help those who have recently filed or who are thinking about filing get all the facts. Find out about after bankruptcy loans and more.

www.handelonthelaw.com – Need a bankruptcy lawyer? Not sure about the process? This site is home to award winning radio host and attorney Bill Handel. His guides to finding a lawyer and his advice will make filing for bankruptcy less stressful.