Consumer Loan After Bankruptcy: These Steps Could Help

Posted By Team iBizExpert On February 21, 2022 09:39 PM Hits: 68

If you want to get a consumer loan after filing for bankruptcy, here are three things you can do:

Raise your credit score before you try to get a personal loan after bankruptcy.

Before you apply for a consumer loan after bankruptcy, you should try to raise your credit score. Why? Because a lower interest rate could come with a better credit score. Depending on what you're financing, this could save you hundreds or even thousands of dollars in interest and other fees.

So, how can you improve your credit score after bankruptcy so that you might be able to get a lower interest rate on a consumer loan? There are several ways to do it. One way is to get rid of any old or wrong negative information on your credit report. Adding good accounts to your credit report is another way. These are just two ways you can improve your credit score. There are more. Again, if you can improve your credit score enough, you might be able to get a lower interest rate on a consumer loan after bankruptcy.

Talk to the lender before applying for a consumer loan after bankruptcy.

Before you fill out a credit application for a personal loan after bankruptcy, you should find out if the lender would even think about approving it. How can you tell? You ask. For example, will the lender give a loan to someone whose credit report shows that they just filed for bankruptcy? Is there a minimum credit score they need? These are just two of the questions you should ask. In After Bankruptcy Credit Solutions, I go over more.

If it turns out that the lender won't even look at your application for a consumer loan after bankruptcy, then you don't have to waste your time sending it in. The lender also didn't check your credit report, which was another thing you avoided.

Make sure the terms of a consumer loan after bankruptcy are fair.

Once you've improved your credit score and found a lender who will give you a consumer loan after bankruptcy, you'll want to try to negotiate the best interest rate and other fees.

How can you work out the terms of a consumer loan after you've gone bankrupt? A lot depends on what kind of loan it is, like an auto loan, a mortgage loan, a personal loan, etc. One way is to look around at different lenders. If you find two that will give you a consumer loan after bankruptcy, compare the terms. You can also ask for a lower interest rate. Again, this depends a lot on what you're financing, but it doesn't hurt to ask. In After Bankruptcy Credit Solutions, I explain in more depth how to negotiate the terms of a loan.

After bankruptcy, you now have three tools you can use to apply for and negotiate a consumer loan. You may have to put in some time and work, but the benefits can be well worth it.

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