Filing for bankruptcy is a difficult decision to make, but it can give you a fresh start. After you have filed for bankruptcy, you might be wondering how you will ever be able to get a loan.
The good news is, it is possible to get a loan after bankruptcy. Here are a few tips on how to get a loan after bankruptcy.
There are a few things you can do to increase your chances of getting a loan after bankruptcy.
Read This: How Does Bankruptcy Affect Your Credit Score?
Rebuild Your Credit To Get A Loan After Bankruptcy
First, you should try to rebuild your credit. You can do this by getting a secured credit card or becoming an authorized user on someone else’s credit card. You can also try to get a small loan from a friend or family member. If you make your payments on time and in full, this will help improve your credit score.
Read This: The Best Guide To Credit Repair After Bankruptcy
Save Up For A Down Payment to Get A Loan After Bankruptcy
Second, you should try to save up for a down payment. Many lenders require borrowers to have a down payment, even if they have good credit. If you can show that you have saved up money for a down payment, this will show the lender that you are responsible with money and are less likely to default on the loan.
Read This: The Best Ways To Make Money During A Recession
Shop Around for Bankruptcy-Friendly Lenders
Third, you should shop around for lenders who are willing to work with people who have filed for bankruptcy. There are many lenders out there who specialize in loans for people with bad credit or who have filed for bankruptcy. These lenders are more likely to approve your loan if you have been making an effort to improve your credit score and have saved up for a down payment.
Read This: How To Build Positive Credit History From Scratch
If you have recently filed for bankruptcy, don’t despair—you can still get a loan. By following these tips, you can increase your chances of being approved for a loan after bankruptcies: try to rebuild your credit, save up for a down payment, and shop around for lenders who specialize in loans for people with bad credit or who have filed bankruptcy.
Erika Finn, founder of Credit Help, is an attorney who graduated from law school (JD) at University of California, Berkeley and is a member of the California Bar Association. She was a member and editor of the California Law Review and won the Prosser Prize for Legal Accounting. She holds a Master’s Degree (MFA) from the University of Southern California (USC) and a Bachelor’s degree (BA) from Indiana University- Bloomington with highest distinction.
Credit Help believes that everyone should have access to helpful, free information about how to raise their credit rating.
Articles on Credit Help are not legal advice or financial advice.