Help! I Need a Loan After Bankruptcy

I need a loan after bankruptcy. Is there any hope of getting one?

Filing for bankruptcy is definitely one of the most financially devastating things that could ever happen to you, and getting a loan with bad credit after you’ve filed probably won’t be that easy. However, it’s not impossible, either. But first, there are some questions you should ask yourself because getting a loan may not be the smartest thing for you to do for obvious reasons. Before applying for a loan, ask yourself:

• Can the money wait?
• Do I have the means to pay the money back if my loan is approved?
• Is there any other way to get the money apart from taking out another loan?

You should think about your answers to those three questions carefully. If there’s any way that you can put off whatever circumstances have led to you needing this money after your bankruptcy, do it. It’s likely that not being able to repay your debts has gotten you into this mess, and you’ll never get out if you keep throwing yourself further and further into the hole. Also, it’s important to keep in mind that you might not be eligible to file for bankruptcy again for several more years. If you find yourself in a situation before then where you cannot pay off your debts, there won’t be an out available to take. It’s also best to put off borrowing the money if you know you can’t afford to pay it back. If the money is something that you cannot wait on, try to see if you can possibly borrow it from a friend or relative instead of taking out a loan. You might also want to consider selling something you own that is of value to raise the money you need. Doing this would prevent you from having a monthly payment to keep up with.

If you have determined that you need a loan after bankruptcy and it simply cannot wait, you’ll have to accept the fact that the only lenders willing to do business with you will likely be those that primarily work with bad credit borrowers. There are also some lenders who cater to people that have just filed for bankruptcy, claiming that they can help you get the fresh start you need to turn your credit around. Unfortunately, these lenders generally charge a great deal of interest on top of the amount borrowed. Keep this in mind while you consider borrowing the money, and make sure that you can in fact pay back whatever you’re given before taking out another loan.

According to MSN Money, getting approval for a loan after bankruptcy can be a positive thing — as long as you are ready to become financially responsible. If you get the loan approval you need, you can use it as a valuable opportunity to rebuild your credit score. If you ever want to be considered by reputable lenders offering lower rates of interest again after you initially file for bankruptcy, you’ll have to have improved your credit rating. These subprime personal loans that you have to settle for just after a bankruptcy can be used as stepping stones toward that as long as you are responsible and have learned from your past mistakes.