What You Must Know About Post Bankruptcy Loans

May 18 07:58 2012 Devora Witts Print This Article

Getting a loan following the discharge of your bankruptcy is no walk in the park, but it is a possibility if you know what to do. Have a look at what lenders now think of you as a borrower.

Bankruptcy is the single worst type of indication to have on your credit record. When you file bankruptcy,Guest Posting you are basically saying to the financial world that you are more than willing to run away from the financial and contractual obligations of your loan agreements and leave them standing, holding the proverbial bag. For the most part, your credit is shot for the next seven to ten years when it comes to borrowing money in the conventional and traditional fashion. However, there are lenders who have a different mindset about loaning money to those who have recently been discharged from bankruptcy proceedings, and they are writing loans for these folks in record numbers – not long after the smoke settles and your previous lenders are counting their losses.Your New Appeal To LendersWhile many lenders think it is just good commonsense to avoid lending to the post bankruptcy crowd, others see it as a golden opportunity, especially if you have a history of working in one place for a long period of time, or in a particular field with very few breaks in employment. The reason for this is that you are prohibited from filing bankruptcy for a number of years, and if you are working, the lender assumes that should you fail to repay the loan that is extended to you, a simple default judgment is all that would be needed in order to garnish your paycheck. Lending to you is less risky to some lenders than loaning money to someone with slightly damaged credit.And best of all, you are a borrower that has no other debts, which strengthens the belief that the lender has that you will repay your loan because you have little or nothing else to do with your disposable income. Short term loans, therefore, are pretty easy to obtain in the months following bankruptcy; you can make your application look even better by pledging collateral in the form of a lien against your home or vehicle, or by applying with a cosigner backing you up and agreeing to pay if you do not.Tips For Post Bankruptcy LoansSo while it may be possible to take out loans in the immediate period following the discharge of your bankruptcy, it is always wise to start small. Borrow only a few thousand dollars or less, and make your payments on time. You certainly want to avoid over-extending yourself financially while you are attempting to improve your credit, and you do not want to appear to be applying for too many loans at once. It is best to approach a lender who has a record of loaning to people whose credit situation is just like yours, like those online lenders who specialize in post bankruptcy financing. That way, turn downed or not, you will not inflict too much damage to your already fragile credit report just by applying for a loan.

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Devora Witts
Devora Witts

Devora Witts is a certified loan consultant who helps people get approved for Loans for People with Bad Credit and Bad Credit Mortgage Loans. To get aid with your financial situation you can visit her at http://www.badcreditloanservices.com

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