Quick Ways to Get a Bank Loan After Bankruptcy
April 16, 2012
Author: Allison K.Watkins
Usually people believe that if they have filed for bankruptcy, they are ruined their life and will not be able to revive their financial status or will have poor credit score for ever. However, according to the law, the maximum duration a bankruptcy stays in the credit report is about ten years. With the help of your credit agencies you can reduce this duration by being responsible, keeping your debts low and clearing your bills on time with regular, steady income. If you fulfill the above conditions, you can even apply for a bank loan.
Ways of Getting Personal Loans After Bankruptcy
Here are a few quick and simple ways to get a loan from a bank that is willing to lend you money even after bankruptcy so that you can revive your financial status and rebuild your credit:
- The first and foremost thing that you need to do when you apply for a bank loan is to check your credit report. Usually if you declare bankruptcy, then your earlier debts will get cleared. This should be indicated in your credit report as “discharged through bankruptcy.” Though it will considerably reduce your credit score, it will help banks to analyze your report and make sure that your credit balance is zero which in turn indicates that you do not have huge financial obligations.
- If you are applying for a loan, you should first clear all your accumulated debts like balance in credit cards, earlier personal loans, child support, alimony or any other balance which was not cleared while filing for bankruptcy. You can be eligible for a loan from a bank provided you have been paying timely payments of late.
- You can even opt for a new line of credit to get a loan easily. This could be in the form of a secured credit card. However this requires collateral and is offered at high interest rates. But the credit card can help you revive your credit record which can in turn help you in getting a loan.
- You can also use a cosigner to get a loan of your choice. Most lending institutions like banks approve loans if you use make another person with sound credit partially responsible for the loan. This reduces the risk factor for the banks as they are sure that even if you are unable to repay the loan, your cosigner will do the needful.
- The most important criteria for most of the lending institutions are steady income, for which you need to be gainfully employed for a minimum of three months before you apply for a bank loan. If you have filed the bankruptcy due to unemployment, then you need to look for a job before applying for the loan to meet the loan specifications.
Based on the existing bankruptcy laws, it is considered illegal if you do not receive a loan from a bank or a lending institute due to a history of bankruptcy. You can still qualify for a loan provided you are responsible and sensible enough to make the lenders believe that you can manage your accounts wisely.
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