You Can Get a Personal Loan After Bankruptcy

Having survived bankruptcy, you may think that your world is topsy-turvy. Well, that is not exactly true. Your declaration may leave an indelible mark on your credit history that is hard to entirely escape, but remember, you are not the only one. Over 250 thousand bankruptcy declarations are filed every three months in this nation. Many of these are due to the economic and financial turmoil the global economy that has dealt us all some hurt this last half-decade.

Joblessness, Illness, Bad Luck

The unemployment rate, perhaps poor health, or just plain old bad luck, have caused many to become behind on important monthly obligations such as housing or transportation or grocery bills. When these unpaid obligations start to pile up, they can have a snowball effect and get worse with each ensuing month. As a last resort, to protect whatever assets are still surviving, some have no other recourse than to declare bankruptcy. Having come out of bankruptcy, many should consider it as a way to wipe the slate clean and start rebuilding toward the future and improving their creditworthiness.

Up by the Boot Straps with a Personal Loan after Bankruptcy

Rebuilding your creditworthiness and your good name could very well start with taking out a personal loan. Whether taking out a secured or unsecured loan, go for it. One secret is to not stop borrowing. Just remember that an unsecured loan will charge you a higher interest rate than a secured loan. A secured loan is one that is backed by an asset you own, such as real estate or a vehicle. Whatever transpires, please do not neglect this loan in terms of repayment on time every time. You are being granted a second chance and it would be wise to not spoil it.

Potential for Repayment

Depending on factors such as collateral, salary, and even personal recommendations, personal loans are available that range from $500 to $20,000. Income will be a primary consideration when loan amounts are figured. Some financial advisers suggest that individuals who have experienced a bankruptcy can start at $5K or below for a first personal loans ensuing a bankruptcy discharge. If the need is great and the payback potential great, a loan could be higher than that.

Some Extra Help

If you have no collateral, your best bet for a personal loan after bankruptcy would be to have a financially secure cosigner. Unsecured or no-collateral loans are riskiest for lenders so interest rates will be high. To lower these rates, having a cosigner would be a good way to land a personal loan after bankruptcy. The cosigner must be aware that they are liable for the loan should you default for whatever reason.

Seek Far and Wide

Because there are so many folks who have found themselves financially strapped, there are many private lenders who have stepped in to answer the calls of the market regarding personal loans after bankruptcy. You will find a plethora of these lenders on the internet. Simply punch bankruptcy loans into your favorite search engine and you will be rewarded with many lenders willing to take a chance on bankruptcy clients. You will pay higher than usual interest rates, but you will also find that they can be lower than expected due to the competition in the market. As you can see, it is possible to get a personal loan after bankruptcy.

Three Pointers On Personal Loans After Bankruptcy Discharge

One of the most damaging aspects of bankruptcy is the damage it does to ones self-esteem. Guilt, having to take such a drastic measure, worry about unpaid creditors, all contribute to a sense of failure that is really unnecessary. You are not alone in your tribulation. You will not be the last or the first who needed to seek relief with bankruptcy or by taking a personal loan after bankruptcy. Notwithstanding all this, you must admit that the sense of relief is sublime – a good night’s sleep a blessing. And landing a personal loan after bankruptcy may add to that relief.

What Is a Bankruptcy Discharge?

A discharge is a priority within many bankruptcy agreements that acknowledges you as the borrower to be exonerated from any personal liability in the future regarding certain types of debt from the past.

Any debts qualifying under this priority are no longer your responsibility. (This lower debt load will help you get a personal loan after bankruptcy.) It does not stop there. It prohibits any creditor or their representatives from hounding you for repayment. This applies across the board, from phone calls, to letters of demand, to any means the creditor may stoop to wrest funds from you. Some debts, taxes, child support, and the like, will remain owed by you even after the bankruptcy and you will still be responsible for them. But, even at that, responsibilities are so much more easy to face. None of this will affect your ability to get a personal loan after bankruptcy.

Bankruptcy Does Not Quell the Need for Cash

Immediately after a bankruptcy, it will be hard to qualify for a number of loans. This can last for a number of years. But, if you need a cash infusion, they are not impossible to find.

Lenders do exist who are willing to lend to folks who have experienced bankruptcy. If you need some guidance, personal loan options abound and here are some tips to getting funded. Before you venture into the personal loan market – and your best bet would be the internet – be aware that there are predators out there who will prey on your low self-esteem and other vulnerabilities to take your cash and offer little in return. Trying to get a personal loan after bankruptcy with these shysters will only cause you more trouble.

ONE – Secured or Unsecured Loans

Secured loans require collateral of real value property, usually real estate or a late model vehicle. Having collateral can ease the application and lower your interest rates. Unsecured loans, while a bit harder to get, are not impossible, but they do carry very high interest rates.

TWO – Amount and Repayment

You should have a budget and this should make it easy for you to determine how much you need and how quickly you can pay it off. The more quickly you pay, the lower your cost. The more frequently you take such loans and meet their maturity, the better your credit report becomes.

THREE – Spread It Around

Once you have located a number of lenders willing to fund loans for those with bankruptcy, check their qualifications carefully before applying. Getting refused hand over fist can do your credit report even more damage. Lenders may come to see you as loan hungry. Applying to 3-5 lenders could give you the opportunity to shop for the lowest rates and the most affordable repayment terms. But again, do not reach for the unattainable, at least not right now.

Mustering up your self-confidence and sticking to the guidelines above, you should be able to get the personal loan after bankruptcy that you need.

Payday Loan Companies Facing New Postal Competition

When using payday loan services, an applicant must have an active bank account. For those millions of people who do not use banks to hold their money, it would be tough for them to acquire a fast payday loan. A storefront service will expect a signed check to hold for payment on due date. An online service uses bank transfers and debits to process their loans. How would anyone without a bank account get fast cash? The post office believes they have an answer to service customers who use short-term loans or have no bank account.

The USPS will offer ‘Postal Loans’ to help people save money on fees. This doesn’t mean that there are no fees attached, but the postal service does believe that it would be better than what folks pay into payday lender companies and cash check services. It’s one more option for those who need a money boost.

As it stands, people who do not have a bank account but do work for a living need to cash their checks somewhere. Cash checking services are done with a fee and some places even offer a savings type account to hold money instead of carrying it around with you. It’s a safe way to protect your earnings but none of it is free. The USPS would like to offer a prepaid card to consumers who have their paycheck directly deposited onto that card. A postal loan would be limited to half the amount deposited onto that card. What about the fees? How will the USPS get paid for their service? Payday loan lenders make their fees known upfront. The service has been around long enough that most people at least have a basic understanding of how it all works.

Every person who takes out a postal loan would have to pay 5% until that loan is paid off. It sounds very reasonable and the idea of the loan would help many people save lots of money on finance charges. The trouble lies with the inability to make good on the loan. Payday lenders fight that fight every day. There is no direct access to a person’s paycheck, only the ability to collect by debiting their account. If the money is not in a bank account, a direct lender will have to continue to try, add more fees and work something out with the borrower that both parties can agree upon. The USPS will have access to a person’s full paycheck. If the loan is not paid as contracted, the USPS can automatically withhold the payment from the direct deposited paycheck and place whatever is remaining of their paycheck onto the card. Borrowers will pay no matter what without a chance to work something out.

Banks and credit unions offer similar services as well. Their rates are lower than typical direct lenders and people tend to trust the institutions more. The idea of alternative options is wonderful. Let the people decide. It is interesting to point out that three major banks have already decided to pull out of their payday loan offers. The hassles accompanied by them from regulatory problems to customer complaints and payment troubles are more than they bargained for. It seems that people still run into trouble and with first access to paychecks with the ability to collect, borrowers continue to have trouble. Consumers lose control over their paycheck. When a borrower used a payday loan service, they keep the control with a higher finance charge.

Money management is ultimately up to each borrower. They will need to use a service which will work best for them. The postal loan, once it becomes active, will help those customers without a bank account. The actual postal loan is yet to be determined as far as how borrowers will review the services.