Personal Loans After Bankruptcy

Personal loans after bankruptcy are possible to get, if you what to do. Bankruptcy can devastate your credit history and ruin chances of getting a loan or any sort of credit. Fortunately, if you make a concerted attempt to keep your credit in tip top shape, you stand a very good chance of being able to get a personal loan after bankruptcy.

There is an unwritten rule amongst lenders not to give out loans to people with less than two years since bankruptcy discharge. Thus, if you apply for any sort of loan less than two years after bankruptcy, your loan application will likely be rejected.

This is because lenders want to see an established credit history before they consider lending money. Two years is enough time, with proper credit management on your part, to fix credit enough to qualify for conventional loans. The key is to actually get your credit to that level.

Now, if you need a personal loan after bankruptcy fast, you can look at a bad credit lender. Bad credit lenders specialize in giving personal loans for people with very bad credit. If you have bankruptcy, you will likely still qualify for this type of loan.

Keep in mind that you will have very high interest rates on this type of bad credit personal loan. However, you can use this loan to rebuild your credit. Eventually, you will be in the position to try and refinance bad credit personal loans for a lower interest rate.

Now, to find bad credit lender that offers personal loans after bankruptcy, you need to look online. There are many lenders and you should make a point to check out as many of these lenders’ websites as possible. The more familiar you are with the terms offered by each bad credit lender, the better the decision you will be able to make. There is a pretty big difference between bad credit lenders in regards to interest rates. By shopping around, you will find the cheapest bad credit loan interest rate.

If you don’t want to get a high interest personal loan, then you will need to fix up your credit for a year or two before applying for a personal loan.

The best way to build your credit after bankruptcy is to look at getting a credit card. Now, there are two types of credit cards, secured and unsecured. Secured credit cards require you to put a deposit on the credit card which becomes the limit of the card. An unsecured credit card is given to you without having to put a deposit down – in essence what we consider a “normal” credit card.

The best credit card after bankruptcy really depends on your credit history. Most people would choose to go with an unsecured credit card. The advantages are pretty obvious. However, with bad credit, you will find it difficult to get an unsecured credit card after bankruptcy.

Now, it still is possible to get an unsecured credit card for people with bankruptcy. However, you will likely be given a card with very high interest and other penalties.

Getting a secured credit card after bankruptcy is much easier, however. You are virtually guaranteed one. You can look online or go to a bank to get a secured credit card. In general, getting a secured credit card online is the better choice because there are a wide range of lenders who offer secured credit cards. There are many different interest rates available, depending on the lender. Now, here is where you need to do some research. Not all the credit card lenders will offer the same terms. You may be able to find secured credit cards online with low interest with one lender, while another lender may offer a secured credit card with 25% interest rates. You should make a point to check out the various secured and unsecured credit card offers online.

Once you have a credit card, it comes to using it responsibly. If you are responsible with your credit card, using it to purchase items and quickly pay them off at the end of the month, you will improve your credit history quickly. A couple pointers to remember: don’t have more than two credit cards and only ever use 50% of your lending limit on your card. If you don’t do this, you may get a mark against you from the credit card companies.

Once your credit improves, you will be in a good position to get a personal loan after bankruptcy with low interest rates.

Getting personal loans after bankruptcy, contrary to popular though, it’s possible if you make a concerted effort to improve your credit. This will take couple years work on your part, but it’s very possible for you to do so. However, if you do need a quick loan after bankruptcy discharge, you can look at the subprime lenders who offer poor credit loans.