This Article is About
high interest rates
bad credit history
natural disaster
financial history
rejections
debts
priority
circumstances
money
How To Get The Best Loan After Bankruptcy
Join 1000's of Authors at StreetArticles Today!

Because getting financing at all is difficult with a bad credit history many focus solely on finding approval. While this is obviously the priority, you do want to try and improve your situation as best you can and look at how to get the best loan after bankruptcy you can to save yourself money and avoid getting into an unmanageable situation. While the priority is to get approval, the priority even above that is to make sure you don't get into a situation you can't handle and to make sure you don't get ripped off.

The first thing to do is make sure you've cleaned up your credit by making sure everything that was discharged is marked as such on your report. You also want to wait about a year before making any financing applications, and use that time to get a secured credit card and generally build up some new financial history. When you go to find financing, if at all possible, look into secured options--where you'll need something you can use for collateral.

Be aware that even in the best circumstances any loan after bankruptcy that you find will have high interest rates, you're just looking for the most manageable rates and terms that you can find. When you have bad credit a high rate is inevitable, but you want to make sure you are getting a reasonable deal for your situation and that you can really afford the payments.

Do make sure to explain what happened that got you into your past financial problems when you go to apply. Lenders will care about this. You don't want to go on about it forever, keep it down to a short one to three sentence explanation, but if you got divorced, had a medical emergency, survived a natural disaster, or even just got very overwhelmed by some past financial mistakes, be upfront about it and explain how things are different now and this won't be a concern. Show them that since discharging your debts you have taken specific steps to start building up a good credit history, and you see this loan as part of that effort.

Don't let any rejections you receive shake your confidence. This is to be expected under the circumstances. As with most things you will apply for in your life after bankruptcy you will have to try multiple times before you find something that will work for your circumstances. Move forward and keep your head up. Do not let yourself become desperate and willing to take anything that is offered to you either--always read the terms and conditions and be sure you'll be able to handle whatever you're signing on for. A lot of companies that offer lower interest financing for people with bad credit histories make up for this savings they're offering you by slipping fees into the terms and conditions, which few people read.

It can be difficult, but you can find financing, and use it to help you build up a better credit history. Look at how to get the best loan after bankruptcy, which basically involves cleaning up your finances, and find the best deal you can.


Street Talk

No comments present
You May Also Like
How Can I Get Out Of Payday Loan Debt?
In the consolidation business you hear a lot of people asking “how can I get out of payday loan debt?” and the answer is always the same: through hard work! Still, there are some simple tricks that you can use in order to get rid of this debt. This is…
By: David Schmidt in  Finance  >  Debt Consolidation   Oct 31, 2012  
2
  Likes: 3

Saving for An Emergency
Emergencies can come at any time and in many different forms and can happen to any of us. Sometimes they are in the form of a wildfire, like the one Colorado has been battling for the past few weeks. Other times they can come in the form of a health…
By: David Schmidt in  Finance  >  Debt Management   Jul 09, 2012  
20
  Likes: 10

End Payday Loan Debt
Like most people we’re all feeling the effects of the economy – with the loss of jobs, companies that were supposed to be invincible have even gone out of business. Not to mention the looming fiscal cliff which happens at the end of this year – and if we go…
By: Leo E in  Finance  >  Debt Consolidation   Dec 20, 2012  
4
  Likes: 5

How Does Filing Bankruptcy In Florida Affect Your Credit Score?
Bankruptcy is the legal process of being forgiven for repaying your creditors the full amount of money you promised to pay them when they loaned that money to you. Since credit has everything to do with your financial responsibility and ability to repay loans, filing for bankruptcy will hurt your…
By: LOofJM in  Finance  >  Bankruptcy Lawyers   Jun 29, 2012  
0
  Likes: 0

Criticism On The Pay Day Loans In The UK
Payday loans in the UK are increasingly taking centre stage in the financial market due to the aid they give to local citizens. However, there are some critics who have come out strongly to object these services stating that they are horrendous and all they do is exploit the citizens.…
By: Jonny Haberdash in  Finance  >  Loans   Apr 04, 2012  
0
  Likes: 0

Improving Your Credit Score In Langhorne – What You Can Do
The best way to go about purchasing a car or house is by financing these big-ticket items with a loan from a bank, credit union or private third party lenders. Good credit is essential for you to be successful with acquiring a loan. The post baby boomer generation grew up…
By: Tom Gilmour in  Finance  >  Loans   Jan 27, 2013  
0
  Likes: 1

How To Find a Small Business Commercial Loan
Once upon a time when business owners could just walk into a bank and get a loan for the business based on their rapport with the bank and loan officer. However, with the downturn in the economy, it is sad to say that, that time appears to be over! Banks…
By: Reed Cambpell in  Finance  >  Loans   Dec 30, 2010  
0
  Likes: 0

3 Strategies For Reducing Your Current Debt
The No. 1 way of reducing debt is to reduce monthly expenditures. One way to recognize your potentially fatal spending habits is to keep a record of every expense made for one month. You might be surprised to know the result! At the end of each month, you could see…
By: David Dicristo in  Finance  >  Debt Management   Sep 17, 2012  
0
  Likes: 0

Payday Loan Hell
In the Christian religion, and some other Judeo-Christian religions, the concept of “hell” has taken root. Many people fear hell in the afterlife and therefore maintain good relations while they are living. However, the people who are suffering with families every day are in their own type of hell on…
By: David Schmidt in  Finance  >  Debt Consolidation   Aug 30, 2012  
28
  Likes: 13

I Am Drowning In Payday Loans
A former colleague of mine was in the financial industry after the collapse of the economy in 2008. He was doing great until that year, but I never realized how far he had fallen until we spoke over the phone. He told me “I am drowning in payday loans” and…
By: David Schmidt in  Finance  >  Debt Management   Aug 15, 2013  
6
  Likes: 6

Learn How to Establish Credit
Having a credit history,good or bad, will allow you to move through the complex financial world we live in. But what if you don't have a credit history at all? For the most part, having no credit history is worse than having a poor credit history. But the question is…
By: Scott Oberholser in  Finance  >  Credit   Aug 22, 2011  
0
  Likes: 0

Debt Mangement for Londoners - Fundamental Techniques to Get Out Of Your Financial Rut
Debts can be difficult to pay off - this is a hard fact of life. A person who is on the verge of bankruptcy would do well to consider the long-term effects of non-payment, hence, debt consolidation is a must. Where multiple debts are involved, it is wise to resort…
By: Jack Oliver in  Finance  >  Debt Management   Oct 20, 2012  
0
  Likes: 0

Financial Planning – A Sign Of the Times
Retirement are you ready for it, did you plan well enough, where you informed enough? Fifteen years ago, invited to a seminar for small business, I discovered a fact I was unwilling to face. The seminar covered financial planning for the future, and our standard of preparedness. Being in a…
By: Rob Ainslie in  Home and Family  >  Retirement   Feb 26, 2012  
2
  Likes: 0

Alabama State Payday Loan Laws
Like many other states, Alabama allows consumers to take out short term loans, also known as payday loans. These loans require repayment in full within a short period of time and have excessively high interest rates on them. When factoring in that short period of time and the amount of…
By: Leo E in  Finance  >  Debt Consolidation   Dec 08, 2012  
2
  Likes: 0

How to Get A Credit Card With Bad Credit
We have all made mistakes with our credit score. Whether it is a late payment on a utility bill, or even something as horrible as a bankruptcy. Let's face it, we all make mistakes. However, this does not mean that we are not be able to repair these mistakes and…
By: tom13 in  Finance  >  Credit   Dec 08, 2012  
0
  Likes: 0

Article Views: 2059    Report this Article