The problem with anything you do after you’ve had a lot of financial trouble show up ony our credit report is that lenders don’t trust you. They make their decisions on who to lend to based on how likely it is that you will repay them. When you have other factors on your application, like collateral, they can try and take those into account to balance out your application.
When you’re looking at how to get approval for a personal loan after bankruptcy, however, you are looking at unsecured financing, or financing that is based solely on your credit history, which is not in the best of shape. There are still things you can do to make this work for you, and ways to build this into an overall credit building plan, though.
What you’ve done since you discharged your debts is going to be a big factor on your application. You’ve got this new start, sure, but a blank slate (that only really says you had problems in the past) doesn’t really do much for you. You need to build new positive things on there. Immediately after you’ve finished going through the bankruptcy process is going to be a really tough time for you to do anything financially. If it’s been at least nine months or so though, and you’ve done some other things to start building up a history immediately, it’s going to make things a lot easier for you.
It may seem like there is nothing for you to do with your situation, but there are products built specifically for your situation, such as secured credit cards. For these, you put up a few hundred dollars that will be put into a savings account and used as your collateral (you’ll get it back as long as you make all of your payments) and then can use your credit card just as you used your unsecured ones in the past. For the best credit building purposes use under thirty percent of the limit and pay it off in full each month.
Making these small steps can be hard and exhausting, but help improve your situation. You also need to have a steady income that can cover your monthly loan payments if you get approval for a personal loan after bankruptcy. Having signs of stability, like having the same job or residence for years at a time, can also help out your application. When you go to apply they will ask you what caused you to claim bankruptcy-do not get too far into this, keep it short, about two sentences. Whether it was medical, divorce, a natural disaster, or credit cards, be clear and to the point. They will care about why this happened.
And, as always, make sure to shop around and read the terms and conditions before signing anything, so you don’t get in over your head.