Where To Find A Loan For People Who Have Been Bankrupt?

Bankruptcy Is Not The End

If you have filed for bankruptcy in the past or considering it in the future, know that it is not the end to your financial life.  In fact, by resolving the issues of the past, you are able to move forward in creating a better financial life for yourself, including repairing your credit score.

A common question asked about bankruptcy is “who will give me credit or a loan in the future?”  There are many reputable companies that will do so!   At first, these loans may have restrictions, such as needing a deposit or having a small credit limit.  However, with as little as 6 monthly payments, you can build up your profile with the creditor and qualify for a credit line increase or a larger loan amount.  In fact, with careful diligence and re-building of credit score, you can even qualify for a mortgage in as less as three years after filing for bankruptcy.

Loans For People Who Have Been Bankrupt

There are many types of loans that exist for people who have been bankrupt.  Although bankruptcy can severely damage a credit score, there are still options that exist.  A first step would be to apply for a secured credit card, where you put down a deposit (such as $500) in order to get a credit card with a $500 limit.  Be sure to insure that this creditor will report your on-time payments to all three credit bureaus (TransUnion, Experian, and Equifax).  This will allow you to rebuild your credit score after bankruptcy so that you can later qualify for larger limits and loans.  In fact, with on-time payments, you may have a better credit score after bankruptcy than before!

Another option to is take a small signature loan.  A signature loan can be found at any local bank.  Credit unions are often a better source for signature loans.  Even if you have to pay a high interest rate, you can use a small loan to rebuild your credit.  If you take a $500 to $1000 loan at a 19% interest rate, you can make payments of $100 or more a month for a little over a year to pay back the debt while rebuilding your credit score.

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