Usually, it is tough to get a loan when you are in a post bankruptcy situation because the bank don’t trust that you have the ability to repay the loan. Before you will be considered for a personal loan, you must show that you have a credit score that meets their minimum requirement. You can reestablish a good credit score by applying for a secured credit card. Secured credit card requires a security deposit that is equivalent to the credit limit. Just like a normal credit card, you must fill in all the necessary details in the application form when applying for a secured card.
Your credit score will increase when you constantly pay for the bills on time as long as the credit card company report your payment to the credit bureau. If you can prove that you are a responsible person, they can increase the status of your card to an unsecured card. Normally, this can be achieved when you have consistently make on time payment for at least 12 – 18 months. It is recommended that you consistently pay your secured card’s bill in full and on time for at least 6 months prior to applying for an unsecured personal loan.
If you need money urgently, you can apply for the secured loans which requires a collateral such as house and car. You also have the option of applying for a loan at payday loan shop. Many payday loan shops offer short term loans that have to be paid back by the next payday for up to $2,000. The repayment period for payday loan is about 16 days to 1 month. They don’t check your credit score but they will want to confirm that you have a stable job and has been employed for at least 6 months. With payday loans, the funds can be deposited into your account within the same day if there is no problem with your application. You can find out the cut off time if you want to receive the funds on the same day. Payday loans have high interest rates so you must make sure that you can pay back on time if you want to apply for it. Other popular options are installment loans, which can generally be obtained for up to five years. These loans offer lower rates and often consumers can borrow more money. The loans can also be secured through online websites and the general approval time is three to seven days and funds can be deposited within a week or two.
An alternative to payday loans for people who just filed for bankruptcy is the P2P loans. P2P loans is different than a bank loan because the loans are supplied by individual lenders. Since you are borrowing from individuals lenders, it is much easier to obtain the loan as these lenders can understand your situation and be willing to borrow you the money at a low interest rate that you can afford. You can borrow up to a maximum loan amount of $35,000 when you obtain a loan in the P2P platform.