How to Convince Lenders to Give You a Loan After Filing for Bankruptcy
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Filing for bankruptcy is a difficult choice, but it can also be the best way to get a fresh financial start. The downside is that lenders may be less willing to consider you for unsecured personal loans or a line of credit with a bankruptcy on your credit history.
Someone with a good-to-average credit score can expect their score to drop by as much as 100 points following a bankruptcy.
If your credit score is already low due to multiple delinquencies, charge-offs or collection accounts, the damage caused by bankruptcy may be much worse. Bankruptcy can stay on your credit report for up to 10 years, depending on which type you file.
Before Taking on a Personal Loan
Before applying for unsecured personal loans, begin reestablishing your credit. Start small with a secured credit card, which is a great option to get a credit card with bad credit. With this type of card, you deposit a specific amount of cash with the card issuer, which then serves as your credit line.
As long as you’re paying all your bills on time, you should begin to see your credit score imp…………… continues on Go Banking Rates