Getting a personal loan after bankruptcy: How feasible is it?


It is normal to be on a borderline after bankruptcy, but fortunately, there are solutions for that considering today’s world and the economical situation. If you are considering applying for a personal loan, you need to know this is not impossible, but still take into account you become a higher-risk applicant for lenders, even when you know you will be able to pay for your loan, due to bankruptcy remaining in your credit history. There are options to apply for a personal loan, it is just a matter of assuming that the lender may charge higher fees. For this article, the title loans Fort Worth team gave us some advice about this particular topic. 


Many bankruptcy-friendly lenders might be willing to help you on getting a personal loan, there are many borrowers in the same situation so there are already solutions for the problem. The thing is to get a reasonable fee for the loan. There are still some aspects the lender will take into account to approve or deny your application:


  • Type of bankruptcy and when you fill up: There are two ways for people to fill into bankruptcy, those are Chapter 7 and Chapter 13 bankruptcy, choosing either of them depends on the person’s situation. While Chapter 7 bankruptcy involves the cancellation of most or all of your debts, Chapter 13 focuses more on dealing with any secured debt, by planning a repayment. The main difference falls into the time it can remain on your credit report, which is up to 10 years for Chapter 7, whereas for Chapter 13 is not more than 7 years.
  • Credit score: There are still ways to improve your credit score while you are bankrupt. This is an important thing to consider, due to the lender has to analyze your credit score to approve or deny your application. However, the interest rate might not be favorable.
  • Salary: Incomes are checked by lenders for an obvious reason, they need to see if you can pay a loan and determine how much money you are able to borrow. 
  • Type of personal loan:There are different types of personal loans, after bankruptcy, it is advisable to consult for secured personal loans. So the lender can rely on the loan to be paid, due to the requirements for a secured loan, which are mostly collateral, it is more probable for the lender to rely on this. 


How feasible is it to get a personal loan after bankruptcy?


Due to your credit history, some lenders might not want to approve a personal loan, lenders are able to see the bankruptcy on your credit reports, depending on the bankruptcy you filed it can remain up to 10 years, because of this, you may not follow some requirements. However, it is still possible to ask for a personal loan, taking into account less-favorable loan terms and high-interest rates.  


As we have said before, there are still alternatives to getting a personal loan after bankruptcy. One of them is applying for a loan with a co-signer, which means someone who has not gone bankrupt is attached to your application, in this way you can lower your interest rate and it is more probable for lenders to approve your application. 


With a credit-builder loan or secured credit card, you might have the possibility to borrow money. These methods help people to rebuild a positive payment history, so you can also prove to your lender you are worthy to give the money back.

If you are looking for a personal loan after bankruptcy, you should better start by comparing lenders, and see the interest rates they offer according to your situation. There are also online lenders, community banks, and credit unions, which focus more on small personal loans and people with low credit.