Introducing: Personal Loans After Bankruptcy

Filing a bankruptcy at the local court is not the beginning of the end for your financial world or your future. In fact, coming back after such an ordeal may be an indicator of future strength. Securing a personal loan after bankruptcy may be an ordeal, but once landing one and seeing it through on the agreed-upon terms, will indicate your ability and worthiness to go on with other folks trusting you.

First Steps to Securing a Personal Loan after Bankruptcy

After your application for a Chapter 7 bankruptcy has been approved by the courts, it may be necessary to wait two years before asking for another loan. Your income and your stability will be paramount after that time period. While this time passes, you need to show that you are no longer a high-risk to lenders. Keep all your time payments and utility bills up to date.

Boost Your Credit

While you are waiting for that magic time after which you can apply for loans on the strength of your own creditworthiness, why not try for a secured credit card and a small personal loan. You will need to put up cash, from $2-300 to get a secured credit card.

That amount will never be used to keep your payments up to date, but it will be your credit limit. These cards are an excellent way to eventually qualify for a personal loan after bankruptcy. In spite of that deposit, you will be required to make your monthly payments on time, every time. This will surely help your credit scores and credit worthiness. Only if you default on your obligation will your deposit be put towards your debt, and at the same time, the credit card issuer will put another black mark on your credit history.

Small Loans

Many folks have taken to applying for small personal loans from a variety of vendors. Often, the amount from the loan is put into a separate bank account and then payments are pulled out those accounts automatically to meet the terms of that particular loan. After doing this a few times, bankruptcy folks have seen their credit ratings slowly but inexorably rise. These too are excellent precursors to getting a personal loan after bankruptcy.

Just in Case

If you are not quite into bankruptcy, you may want to consider taking out a consolidation loan. This will pay off all your creditors and get you into a loan where you make one payment, at one interest rate, at one time of the month, to one creditor. This can make your financial life a lot easier, your payment could be a lot less than the sum of all our other payments combined. And this could be a good way to avoid bankruptcy in the first place.

Other Post-Bankruptcy Personal Loan Options

After bankruptcy, you may want to approach a local jewelry store, appliance store, or other mom-and-pop store you may be willing to give you a purchase on a monthly payment plan. Go for it but keep your payments on time and on amount. After you have successfully retired such a loan, ask the small-time lender to give you a letter of creditworthiness. This too can help you re-establish your credit.

Loans after Bankruptcy

As noted earlier, you do not fall into a dark hole never to come back after bankruptcy. Taking little steps and minding payments and making them on time, can go a long way to putting yourself into a place where creditors will once again be willing to offer your a loan. Many ways exist to find a personal loan after bankruptcy.

How to Get Personal Loans After Bankruptcy

Bankruptcy can turn your financial world upside down. Bankruptcy leaves an indelible mark of negativity on your credit file that can hard to escape. If you have filed bankruptcy this year, you certainly are not alone. There are over a quarter of a million bankruptcy petitions filed each quarter of the calendar year, on average, in the United States alone. There are many factors behind the rise in the number of bankruptcy proceedings – including the economic downturn and financial crisis that has left many American workers jobless.

Perhaps you are among those left looking for work without money for your bills – or maybe you have experienced a recent illness or injury that left you unable to work and therefore you became delinquent on important monthly payments – such as your mortgage or car payments. Filing bankruptcy becomes the only option for many individuals – and provides a means for them to protect their assets from foreclosure and repossession. If you have recently come out of bankruptcy – now is the time to begin rebuilding your future and improving your borrowing outlook.

Recovering Your Good Name

To begin the process of rebuilding your borrowing reputation and your good name, you should start with a personal loan. A personal loan can be either secured or unsecured, and there is a big difference between the two – mainly the amount of interest that you will pay on each. Because of your new status as a borrower who has filed bankruptcy – you should expect to pay more interest on either than the normal borrower would. Keep in mind, however, that paying a bit more interest now will help build your credit back up in order to qualify yourself for bigger loans with less interest later down the road – once you have established your newfound ability to manage your credit.

Two Versions Of The Personal Loan

A secured personal loan after bankruptcy is the easiest to obtain financial product that is available to borrowers of all incomes. A secured loan is a loan that is backed up by pledged collateral – typically your home or late model automobile. Your lender will place a lien against the property that you pledge for collateral that will be removed when you completely repay the lender. You can get secured loans from $1,000 up to $20,000 – depending upon your income and your ability to repay the lender for the money they extend to you. It is most generally accepted among financial advisors that individuals who have experienced recent bankruptcy start out at $5,000 or below for their first personal loans following bankruptcy discharge, but you may ask for more if you have a true need and are completely sure that you can repay the amount with ease.

An unsecured personal loan following bankruptcy is a bit harder to get. These types of loans are the riskiest in the eyes of the lender because they are not receiving collateral against the loan. It is most advisable to apply for the unsecured version of the personal loan with a creditworthy cosigner who will stand behind your ability to repay the lender.

Online Lenders Specialize In Post Bankruptcy Lending

You can find the loan products that are specifically tailored for your personal situation after bankruptcy on the Internet. There are many lenders who specialize in post bankruptcy personal loans that offer these loans online for borrowers at great rates that are highly competitive with traditional walk-in banks.

Paying Back Payday Loans: Timing Is Everything

When it comes to money lending, payday loans are becoming one of the most popular alternative solutions to high-street bank loans. However, like all loans, they do have to be paid back at some point and in the case of payday loans, paying them back on time is imperative. In order to help with the repayment process, it is always prudent to understand just how payday loans are made and more importantly what you, as a consumer needs to know about the whole process.

The first thing that a consumer will need to understand is that a payday loan is designed to be paid back in one lump sum and over a period of no longer than one month. This means that there are no installments for the borrower to worry about, thus allowing them to better focus on paying off their loan right away and staying on top of their finances. Additionally, one swift payment means that the loan won’t incur any more interest.

Let’s review some of the main elements to consider when taking out a payday loan.

When is taking out a payday loan right for me?

It cannot be stressed enough that taking out a payday loan is not for everybody in need of some last minute funds. Why? Well, in short, a payday loan is a temporary solution to a short-term problem. If you are considering taking out one of these loans, but constantly find yourself unable to make ends meet at the end of the month, then a payday loan is probably not the answer for you.

If you usually have a pretty good grip on your finances and just happened to overspend this month or found yourself in an unexpected emergency with a temporary cash flow problem, then a payday loan could be an excellent tool in easing your financial stresses.

How is the repayment made?

In essence, the pay back process is made as simple and as easy as possible – all thanks to the internet. When an applicant applies for a loan, he (or she) must pass through a series of filters to make sure that they qualify. One of the criteria for a payday loan is that they have a current bank account, which they must provide to their lender. These details are then used by the lender to automatically take the one and only payment on the specified date that was agreed upon by both parties. In doing so, things are made a whole lot more convenient for the borrower especially because the only thing that needs done is to make sure that the amount is in their account on that day.

The amount paid is the loan amount plus the agreed interest.

What happens if the applicant cannot make a single repayment in full?

If you inform the payday loan provider that you cannot meet the agreed payment in full, then the majority of lenders will allow you the option of ‘rolling over’ the payment. Now, this is where things can get sticky because however tempting it may be to have more time to pay back your loan, it is important to note that this will incur larger interest charges. However, you will have had to agree to these costs in the very beginning when you took out your payday loan.

*Ask your payday lender about the costs of rolling over, should you be unable to meet the agreed upon repayment date*

Generally speaking, the interest charges on rolled over loan are split into two categories; additional fees and extra interest. The extra interest will typically be the loan plus the extra month’s interest charges at the specified rate.

The additional fees will typically be that of an application or processing charge. This is usually a small administration fee which is charged out once every time a client ‘rolls over’ a payment.

If you, the borrower, should decide that rolling over the payment will give you more time to get you finances in order, it is imperative that you speak to the lender before your first payment comes out. Failure to notify your lender in advance will most likely result in hefty late payment charges and may hurt your chances of borrowing any future money.