Loan after bankruptcy
One of the most devastating financial decisions is filing bankruptcy. Fortunately, the potential to rebuild your credit after bankruptcy does exist and can ultimately result in a positive credit filing. Bankruptcy often occurs because of long-term unemployment, divorce or health problems. Getting a loan after bankruptcy may seem like it would be impossible, especially since a bankruptcy impacts your credit for several years.
The good news is that obtaining a loan after bankruptcy is possible. There are lenders who understand that you need to rebuild your credit in small steps. Before you apply for one of these loans however, you need to carefully evaluate the following:
How much do I need?
Before you borrow money, you should carefully evaluate how much you need to borrow. Remember that small amounts are far easier to repay.
How much can I pay?
If you can only repay $200 per month, this will impact the amount of the loan you should take.
How will my credit be impacted?
Remember, as you repay a loan after bankruptcy, your credit is being rebuilt. Every payment you make will be reported as a positive on your credit report.
Even if you do not have an immediate need for cash, taking a loan after bankruptcy can be a wise financial decision. While this may seem counter-intuitive, the fact is that you want to begin rebuilding your credit as quickly as possible after bankruptcy. A short-term loan can help start that process.
Rates and terms
Before you accept any loan after bankruptcy, you will need to carefully evaluate the terms and conditions the lender is offering. Be sure to check for funding fees, interest rates and any penalties that may be applied if you repay the loan sooner than expected. In the event you have a specific financial need, make sure you can afford the payments as well.
Uses for loans
When you apply for a loan after bankruptcy, you may need the loan to prevent overdrafts in your checking account, make home or auto repairs or purchase a new appliance. Planning for these types of expenses is not always possible so this makes short-term loans with no credit report helpful.
If you have had to file bankruptcy and you find yourself in need of immediate cash, a loan after bankruptcy is possible. Worthy Loans can provide you the access to lenders who are willing to provide this service if you fill out our one page application. Be sure to read all terms and conditions of any loans that are offered to you before accepting an offer. Our base of lenders specialize in these types of loans.