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How to Apply for a Personal Loan After Bankruptcy

May 10th, 2010

personal-loan-bankruptcy-application.jpgWhen you file bankruptcy, you are in a heap of trouble because your credit score is affected in a really negative manner and you may be waiting for a long time before it can be restored. You are told that you cannot apply for loans anywhere, and that leaves you in a lot of anxiety as to how you would get your financial life under control once again. Fortunately for you, there are still some roads open for you to manage your finances and try to rebuild your credit score. One of these roads is a personal loan.

Before you try to apply for any loans, you need to make sure that the credit report you have right now is all correct and does not contain any errors. You should get your credit report checked by three of the credit score agencies to make sure that your credit card company hasn’t made any errors in reporting your credit score and all is in order. If you find any errors, you should report them immediately to your credit card company and make sure that they are fixed immediately.

Also, you should make sure that all of your credit reports have your bankruptcy notice on them. If any of them are missing out, call up your credit agency and send them your bankruptcy documents to verify that your bankruptcy notice appears on each of your credit reports.

If you are applying for a personal loan after bankruptcy, you should make sure that you are working on your finances and improving your credit scores directly after you are discharged with bankruptcy. This is because of the matter that most of the lenders will not lend you any money if you have a bankruptcy discharge on your credit report that is less than two years old. There are some exceptions to this rule though, and if you do some research for yourself on the Internet, you may be able to find some of the lenders that would lend you money even in your current financial situation.

However, if you use the two years that you have after your bankruptcy by maintaining your credit reports with consistent behavior like paying off all your bills on time and making your mortgage payments (if any) on time, you would have a much better chance of acquiring a personal loan. Try getting yourself a secured credit card from a bank, make some purchases, and pay off the full balance before the due date. This will improve your credit score exponentially, and hence you will have a much better chance of applying for a personal loan after bankruptcy.

Related article: Applying for Personal Loans Online

This article was acquired through a PLR agreement from the DigitalPoint forums.

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