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A Guide to Applying for a Personal Loan After Bankruptcy

Claiming to be bankrupt can affect your credit score, and it can remain on your credit report for up to ten years after filing. Since financial emergencies can happen anytime, you might eventually need a personal loan. Unfortunately, declaring bankruptcy makes it difficult to qualify for a loan.


The good news is although it may be challenging, you can still be approved for a personal loan after bankruptcy. You just have to study the process carefully and identify with trustworthy experts. Use this article as your guide to increasing the chances of getting loan approval.


What Happens When I Declare Bankruptcy?


Opting for bankruptcy is often the solution when you are at the limits of your ability to handle your debt-to-income ratio. It acts like a financial reboot that helps you manage your debt more effectively by protecting yourself from creditor harassment, lawsuit threats, and attempts to repossess your assets.


Although bankruptcy can be the lifeline that saves you from crippling debt, you must be ready for its repercussions, such as a lower credit score and having a more challenging time getting approved for financing and rebuilding your credit.


How Do I Apply For a Personal Loan Post-bankruptcy?


An unsecured personal loan can be an ideal choice if you have a less than desirable credit history. If you are trying to qualify for a loan, lenders are likely to charge you higher fees and interest rates because you are a high-risk borrower. This is why you need to do your research before applying.


What Are the Requirements for Loan Application?


Not every lender is the same, so you must get in touch with them for their set of requirements. They consider various factors when reviewing your application, like your income, employment history, and more. Because of this, don’t forget to ask about their requirements.


Suppose you are trying to apply for our personal loans for bad credit in Gadsden, AL. In that case, you are assured that we offer a satisfactory experience by providing a solution that best fits your needs with affordable payment plans. We also do not make payday or title pawn loans nor have hidden fees.


Our loans could be used to rebuild your credit standing, which is appropriate if you declared bankruptcy. We understand the importance of having immediate access to the money you need, which is why we strive to make same-day goals and have an application process that usually takes only 5-10 minutes. We just need the following documents upon approval:


  • Your recent mail within the last 30 days

  • Your valid driver’s license or state ID

  • Your most recent benefits statement or paycheck stub

  • Five personal references


How Do I Increase My Chances of Loan Approval?


The best way to increase your chances of loan approval is by proving to your lender that you can do it, meaning you must have a plan to pay it off as quickly as possible. You also may need some time for your credit to improve, which can take 3-5 years. Most importantly, prepare the necessary documents your lender needs to approve your loan. This information will help you convince your lender that you improved your financial habits.


Conclusion


Requiring an installment loan from time to time is possible, even if you just declared bankruptcy. This is especially true if an emergency strikes and you need funds because you are strapped for cash. Fortunately, a personal loan can be your best option. Remember the information in this guide and reach out to a trusted lender like us for a smooth and successful application process.


If you need personal loans in Gadsden, AL, contact us at Gadsden Finance. We are different from other lenders since our team will never turn any applicant away. We offer fair and straightforward loans that can address your financial needs. If you have any questions, call us at 256-543-0105.


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