How To Recover From Bankruptcy | Tips for Obtaining a Personal Loan After Bankruptcy
The purpose of filing for bankruptcy is to get a fresh start with your credit history—but unfortunately, it’s not that simple. A bankruptcy stays on your record for 7 to 10 years, and your credit score doesn’t magically rise back to the top. If anything, the real work begins after the bankruptcy is discharged. Fortunately, there are some easy ways to recover: you can establish new lines of credit, acquire a personal loan after bankruptcy, and work toward paying off those lingering debts.
Just Say No to Credit Repair Scams
When you’re working your way through bankruptcy, you may find yourself swarmed with letters, emails, and texts from so-called credit repair agencies. They promise to eliminate your poor credit history and give you a fresh start. The problem is that these companies are fraudulent, and following their advice could land you in prison or leave you even deeper in debt.
When it comes to repairing your credit after bankruptcy, there are no shortcuts. You just have to be patient and take the slow, gradual approach. You’ll need to monitor your credit score with the major bureaus on a regular basis (ensuring that your reports are accurate), pay off those lingering bills, and focus on building positive credit.
Pay Off Your Debts
Not all of your debts are discharged after bankruptcy. You may eliminate your credit card debt and medical bills, but certain debts will continue to haunt you. These can include student loans, back taxes, child support, and criminal restitution.
However, these debts may ultimately prove to be a blessing in disguise. By making consistent monthly payments, you can gradually rebuild your credit score. If you’re struggling to manage the existing payments, you can try renegotiating your monthly obligation.
Establish New Lines of Credit
Establishing new lines of credit is the most effective way to rebuild your credit after bankruptcy, but it can be difficult to get approved with a recent bankruptcy on your record. Thankfully, solutions are available. For instance, you can apply for secured credit cards, which are easy to obtain regardless of credit score (you just have to invest the amount of the credit limit ahead of time as collateral).
You can also obtain a loan from a company that works with borrowers who have less-than-perfect credit. At Superior Financial Services, we work with all credit scores, and we often accommodate borrowers who have recently been discharged from bankruptcy. Some lenders will make you wait two years after your bankruptcy is discharged, but we have more flexible terms. We may be able to provide you with recreational, personal, home improvement, or even auto financing after bankruptcy. As long as you make the payments on time, your credit score will benefit.
Apply for a Personal Loan After Bankruptcy
Whether you hope to apply for a personal loan after bankruptcy, need auto financing after bankruptcy, or want any other type of loan, we may be able to help. At Superior Financial Services, we usually give you a same-day decision and provide you with your money in as little as one day. Don’t let your bankruptcy hold you back forever. Reclaim control today.