I have just come out of bankruptcy. What steps do i need to take to be approved for a personal loan.?

Question

For instance how long should i wait to apply? Should i show a savings history first? or should i manage a small credit card first?

Answer 1

Everything takes time! Check out this website, it has alot of answers to questions like yours


http://www.thebklawyer.com/html/recovering_from_bankruptcy.html

Answer 2

Day-Yum! The Nigerian loan scammers are working overtime on this question! Needless to say, don't even think of contacting any of those clowns, they'll just drain whatever you have in your bank and leave you in worse shape than you are right now.

Oddly, it is fairly easy to get credit shortly after you have been been discharged through bankruptcy. This sounds counter-intuitive at first but it really isn't. You now have no debts so you probably have quite a bit better cash flow than you did before the BK, and you can't file BK again for 7 years. The downside to this is that you WILL pay outrageously high rates for any credit that you do get.

For the most part you can probalby forget about a personal loan for a while. A personal loan is one without collateral so you generally need pretty decent credit to get one.

If you're just trying to start rebuilding your credit profile, probably the best bet is a secured credit card. You make a deposit to a savings account and the bank issues you a credit card with a credit limit usually between 100% and 400% of the deposit amount. Use the card for small purchases but pay the balance in full every month so you don't get behind again.

Be careful with the secured card though. Contact a local community bank or credit union. Do NOT use any of the ones that lurk on the internet. They have absurdly high fees -- I've seen fees as high as $295 just to set up the account as well as $149 a year to maintain the account -- and ridiculous interest rates. A secured card should have a preferential interest rate, often in the single digit area, since it's virtually risk free for the card issuer. They have your deposit frozen and therefore CAN'T lose any money on you as they'll just offset your deposit account if you don't pay your bill. Most local community banks and credit unions will give you a fair shake on this but do read ALL of the fine print before you sign anything!

But whatever you do, don't even think of e-mailing those scumbag loan scammers who have cluttered up the responses here. None of them have ever loaned anyone a dime but they've ripped off thousands of desperate people.

Answer 3

I would recommend that you wait as long as possible before getting a personal loan. Try to live within your means and really manage your budget so that you are only spending what you are earning. A small credit card is a good idea if you commit to paying the entire balance every month. The problem with a personal loan is that it can send you right back into bankruptcy, because when your credit is less than stellar, you can be subject to predatory lending. Try to do without it for absolutely as long as possible.

Answer 4

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