Apply For Personal Loans After Bankruptcy

There is nothing more devastating than having to file bankruptcy. The worst scenario of all is that it remains on your credit report for ten years, and that makes it difficult to get other loans, a vehicle, buy a home, rent an apartment, and even get hired for a job.

But there is a “light at the end of the tunnel” called a poor credit unsecured personal loan. It is certainly to your advantage to take advantage of this opportunity to pay your debts and bills and also slowly start building your credit upwards.

You can find a long list of lenders online that offer personal loans for people with bad credit. They do have their own different criteria to qualify, so you can search and find the ones that fit what you are able to apply for. The loan amount is usually between $500 and $2,500, and the interest rate is often between 7% and 9% or more for 3 to 10 years. You will usually be able to get an answer in as short a time as 24 hours.

Some lenders will not approve an applicant if they have ever filed for bankruptcy. Others will stipulate that the bankruptcy was filed perhaps 2 or 5 years ago. Others will consider the credit history restored if the applicant now has at least two unsecured lines of credit. This can be accomplished by opening an unsecured credit account, paying on time for at least 6 months, and then opening a second account to re-establish your credit record.

It is important that you work diligently at your job. Most lenders require that you have been employed in the same place anywhere from 3 to 12 months.

Get a copy of your credit report and make sure there are no errors that need to be worked out and taken off the report.

Just remember to only accept a personal loan with monthly payments that you can afford to make. Your credit can be severely hampered if you have even one late or skipped payment.