Personal loans after bankruptcy are out there; you just have to look
Florida (OPENPRESS) April 17, 2012 - Bankruptcy does offer some immediate relief to those who are unable to meet their obligations, however, there are consequences. And those consequences will be with you a long time should you choose the bankruptcy path.
One of those consequences is that it will be extremely difficult for you to obtain a unsecured personal loan. But it is possible for you to get a personal unsecured loan after bankruptcy, as long as you know how to work it.
First, you have to wait at least six months form the time your bankruptcy is fully discharged, and be ready to face some seriously tough terms. You will need to be sure you can make your payments on time, every time. You'll need to be able to provide a verifiable use for the loan, as well. And last, you will need to stick with your search - there are personal loans out there for those who've gone through bankruptcy, you just have to be willing to commit to finding them.
But why do they make you wait six months before you can apply for a personal loan after bankruptcy? The reason is that lenders need to see you won't go back to your former habits, and that you've learned your lesson. Lenders need to see that you can now manage your money wisely and that you pay your bills on time.
Be prepared, however, for those tough terms. Don't balk if you see that you will have to pay at least 10 percent for your loan. Just be sure you can, in fact, make the payment. Doing so will help to rebuild your credit and help you get a better loan rate in the future - remember that.
You may be wondering why in the world you need to tell a lender what you need the loan for. The reason is that if you don't demonstrate a specific purpose for the loan, the lender will become suspicious and could reject your application. If a lender sees, however, that you are asking for the loan for home improvements, it makes you look more stable and trustworthy.
And remember: Don't give up. It will take time to find the right loan. You may even get turned down a time or two before you get the personal loan you want.
Be careful, though where and with whom you apply. Make sure that you only apply for personal loans with reputable lenders. There are a multitude of lenders out there who are seeking to take advantage of those desperate for a loan, willing to do whatever it takes. Beware this type of lender. Seek out the lender who will be genuine with you - it's definitely worth the wait to do so.
