It requires effort to build credibility and worst of all it requires triple the amount of efforts to rebuild a poor credit history. Bankruptcy should be the last option on your mind after all it stays on your credit history for many years.
There is a uniform and standardized way of measuring the credit score these days - FICO. However credit score is not the only thing that determines your credit rating after a bankruptcy. Your credit payment history also plays a role.
A bankruptcy loan is a means to reestablish your credit. An uninterrupted repayment record after bankruptcy can help you establish good scores. It pays to be in touch with your creditors and apprise them of your situation. Most essential is having an income that is going to support repayment; after all you don’t want to fall into a debt trap.
It is said that immediate qualification for conventional mortgages, car loans etc are not possible until 2-3 years after discharge of bankruptcy. However here are a few loans possible despite bad credit history and tips to get a loan despite your bad credit records.
Bad Credit Card: For most the bad credit card has high interest rates, low spending limit and a high annual fee. So it is advisable to look for a credit card with low APR. In fact it might be worth considering what options you want to explore - a bad credit card or a debt consolidation.
Bad Credit Personal Loan: A personal loan is an unsecured loan, given out solely at the risk of the lender, as there are no collaterals. Also called a signature loan, there are going to be few takers for your credit history on his front; also don’t forget the interest rates are so high you might as well avoid it.
Car Loan: More as a means to rebuild your credit history, a car loan after bankruptcy needs some efforts. There are three main steps to go ahead with this. Firstly check out your credit report. Ensure that the accounts are in place. Add a note on what led to bankruptcy, for most part, lenders can see through genuine problems and are willing to accommodate. Secondly take a loan amount that you can repay easily, be sure of what vehicle you can afford. Lastly do not hesitate to explain your past history and elaborate on your future plans to prevent running into bad credit history again. The lender deserves this explanation.
Mortgage Loan: Getting a loan despite poor credit history couldn’t get better than a mortgage loan. A lender might even accept this before 2years. There would be a down payment, may be as low as 3-5% if you are lucky. In addition they would need income verification.
Many lenders would approve your loan even immediately after a bankruptcy; as long as you meet their other requirements. In fact every lender has its own criteria for giving a credit. The situation is not grim, the equations have changed, and lenders look at credit behavior and credit repayment records rather than the credit scores only. It also works to establish faith amongst your lenders.