You might think it cheeky to ask for a loan soon after going bankrupt. You might assume lenders will dismiss you out of hand. However, that’s not the case. While some will certainly say no, some will take a more lenient view.
Some lenders specialize in this market. It’s not niceness on their part but a chance to earn interest from a segment many lenders ignore.
The rates can be much higher
While there are loans available, the rates will likely be higher than any official lender gave you before bankruptcy. Here are some steps to take if you want a personal loan:
- Check if you are eligible before applying: Entering a few details into the relevant site can help you determine the probable outcome of an application without the need to make an official application – of which too many could affect your credit score.
- Check to see if you can afford it: This will require some honest budgeting on your part. Taking out a loan you cannot afford will only land you in problems again.
- Check that you have all the paperwork: Wage slips and a social security number are just two of the things the application form will outline as required.
- Check to see that your application is accurate: When you fill out the form, make sure it represents your present reality. For example, do not say you earn $2,000 a month if your wages have just dropped to $1,500.
As you can see, bankruptcy can help you make a new start. Learning more about how it works can help you get there.