YES, it is possible to get a personal loan after bankruptcy.
The good news is that after bankruptcy, you can immediately take steps that can have a positive impact on your credit history. While each lender will have certain eligibility requirements, for example, a minimum credit score and minimum income. A descent income and a low debt-to-income ratio can be compensating factors. Especially, if you have taken steps to rebuild your credit.
Here are some important tips for rebuilding your credit after bankruptcy.
- Pull a copy of your credit reports for free by visiting https://www.annualcreditreport.com/.
- Make sure your credit reports are accurate. The accounts that were discharged in bankruptcy should be closed. If any discrepancies are found, these errors should be reported right away to the credit bureaus via a formal dispute.
- Prioritize making future payments on time. It sounds simple, but on-time payments and responsible credit card use can significantly help you recover from bankruptcy.
- Creating a budget is important after completing a bankruptcy case. Write down all necessary living expenses and track how much of the consumer’s income can be used to go towards paying these costs. A good rule of thumb when budgeting is to follow the 50/30/20 rule. What this entails is 50 percent of the consumer’s income goes towards meeting his or her needs. Another 30 percent would be set aside for items that are considered not necessary or are wanted, while 20 percent of the monthly income goes towards savings.
Getting a personal loan after bankruptcy.
If you are interested in applying for a personal loan after bankruptcy, here are some important steps to take.
- Review your credit report. If you find mistakes, contact the credit bureau before applying for the loan.
- Know your loan amount. A personal loan can be helpful, but it still needs to be repaid. That means borrowing within your means and only for what you need.
- Research lenders. Look at minimum and maximum loan amounts, eligibility requirements, APRs, repayment terms, fees, and customer reviews.
- Get prequalified: Once you have your list of potential lenders, see if you can get prequalified online.
- Have all your documents ready. Make sure you have pay stubs, tax statements, and bank statements ready to support your application. After that, it’s in the lender’s hands. You may get a response immediately, or within a couple of days, or up to a week, depending on the type of lender.
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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
