Your Current Employer
1. The first and most important step is your current employer. If you've have been on your job for at lease 6 to 12 months, you would stand a much better chance at getting approved for a loan. A lot of lenders will not accept your application if you have not been at your current employer for twelve.
2. Most lenders use some type of minimum criteria before they will accept or approve a new applicant. Occasionally they'll use your score or just get a copy of your report to review your loan activity. Prior to applying to a lender, the best thing you can do is just ask the lender what is their minimum criteria. Or you could ask then do they accept clients that have filed for bankruptcy? You would generally get the following responds.
A. They do not accept applicant's that have filed for bankruptcy
B. They will accept applicant's that have filed for a bankruptcy over 2 years ago.
C. They will accept applicant's that have filed for a bankruptcy over 5 years ago.
D. They will accept applicant's that have filed for a bankruptcy and has restored their history with at lease two unsecured accounts.
If you were trying to get a home loan, most lenders would require that your bankruptcy is 3 years old.
Ordering Your Report
3. You can order a copy of your report online for free. Before applying for loan, you should have your own personal copy of your report. There could be some new unpaid bills that have been added to your report. If there are bills on your report that should have been included in your bankruptcy, you could write the reporting agency to have them remove or you can let your bankruptcy attorney handle it for you. Once you have a copy of your report, you will know if you meet the minimum criteria for a lender before they have ordered your report.
Where To Apply For A Loan?
4. The best place to apply for a loan is at your current bank. Call or walking to your bank and tell the loan officer that you would like to apply for financing. Before you apply, don't forget to tell the loan officer that you have filed for bankruptcy. At this point, the loan officer will tell you your options, if any are available. A second option is to apply for a loan at a small financial institution. If your savings union is connected to your employer, they could be a little more flexible than the average bank. There are also lenders that offer loans to individuals that have bad credit. You will need to go online to find a list of lenders that offer loans to people with a poor finance history.
Secured Loans and Major Bank Cards
5. Some banks offer secured loans and bank cards to people that have filed for bankruptcy. Not all banks offer this, so you need to ask them before you try to apply for their program.
Higher Rates For Low Scores
6. Once you are approved for a loan, get ready to pay a higher rate of interest for their program. If you make all of your payments on time for 6 months, you can request a lower rate from your bank or financial institution. If they are not willing to reduce your rates, I would try applying with some other financial institution.
Open At Lease Two Unsecured Financing Accounts
7. Once you have been approved and have paid on time for 6 months, try to open at lease one more unsecured financing account. An unsecured financing account really helps to rebuild your score quickly.
Only Accept Terms That You Will Be Able To Afford
8. The last point to cover is that you should only accept a loan that you'll be able to afford. Most people go out and get an auto payment that they know appears a little high. It will be very hard to get approved for any more financing account, if you're late on any of your car payments. Get an idea of what would be an affordable car payment before you go to the car dealer. If you choose a car that is above the amount that you have in mind, you are only asking for problems down the road.
In terms of personal loans after bankruptcy, there are a number of different techniques that you can apply to get the credit you need to get approved for a personal, business, home or car loan.