Can I Get a Personal Loan After Bankruptcy?
If you’re worried that filing for bankruptcy will impact your chances of qualifying for a line of credit or personal loan, you should know that the opportunity may still be available to you. While bankruptcy will impact your credit score and remain on your credit report for anywhere between seven and 10 years, there are still lenders out there that work with individuals with poor credit ratings.
How long will it take for me to get approved for a personal loan after bankruptcy?
According to the personal finance company Credit Karma, once you emerge from bankruptcy, your credit score “could fall below a lender’s minimum score requirements for approval.” (1) The lender will also see the bankruptcy filing on your record. While this might impact your chances of getting approved for a personal loan right after emerging from bankruptcy, there are ways to improve your score.
When a person is unable to get approved for a personal loan due to poor credit, they may be able to take out a credit-builder loan or secured credit card. Both a credit-builder loan and a secured credit card require a person to pay money into an account rather than be provided with a line of credit up front. This way, they don’t serve as a liability to the lender and are able to work on improving their credit score.
If you’re approved for a loan following bankruptcy, you’ll likely incur high interest rates.
If a lender is willing to take a chance on you and allow you to access a line of credit, be prepared for high interest rates. While some lenders will charge interest rates upward of 30%, there have been others that charge as much as 400%, according to Credit Karma. So, while you may be desperate to qualify for a personal loan following bankruptcy, be sure the interest rate is doable as you wouldn’t want to fall back into debt.
Have questions about filing for bankruptcy in Alabama?
If you’ve been on the fence about filing for bankruptcy, whether it is because you aren’t sure if you qualify or even need to file, there are bankruptcy lawyers in St. Clair County, AL that can help you make an informed decision. Hill, Gossett, Kemp & Hufford, P.C. is a bankruptcy law firm with multiple locations in Alabama that would be happy to address your concerns and help you understand how bankruptcy works. To schedule a time to speak with a St. Clair County, AL bankruptcy attorney, contact Hill, Gossett, Kemp & Hufford, P.C. at any of their office locations listed down below.
Have questions about this article or a legal concern? Call 800-672-3103.
Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.
Hill, Gossett, Kemp & Hufford, P.C. can be reached at:
Moody Office
2603 Moody Parkway, Suite 200
Moody, Alabama 35004
Phone: (205) 640-2000
Website: www.hwhlawgroup.com
Leeds Office
7900 Parkway Drive
Leeds, AL 35094
Phone: (205) 699-5500
Springville Office
6441 U.S. Highway 11
Springville, Alabama 35146
Phone: (205) 467-2225
Source:
Leave a Reply
Want to join the discussion?Feel free to contribute!