Applying for Loans After Bankruptcy

A Debt-Free Life is Possible

Bankruptcy is one of the most difficult moments of anyone’s life. It can flip everything you know completely upside down and leave you feeling like you’re spinning out of control with no way to escape.

What’s important to know is that this is not the case. You need to calm down, take a deep breath, and remember that bankruptcy is here to help you, not hurt you. When you are filing for bankruptcy, you are doing so because you are trying to ensure that your debts are wiped away. Bankruptcy is going to make your life easier, eventually.

It’s not going to be easy at the beginning, however. There are going to be challenges that you will be forced to face, and one of them is going to be applying for loans — and we don’t mean the kind of cash loans that push people to bankruptcy in the first place.

We mean the loans that a lot of our society is built off of, such as car payments and mortgages. Applying for these is not going to be easy when you’ve had a bankruptcy to your name, but it is possible. Many of our clients have done so before.

One of the ways we do this is through our “2 Years to 720 Credit Score” program: A free program we have to help anyone that has filed for bankruptcy get their score back up to a 720 within 2 years of bankruptcy.

When you have a higher credit score, it allows you to have a better chance at applying for loans after bankruptcy. This doesn’t mean that you can’t apply for them immediately after, but the chances of being rejected or being given an extremely high interest rate are far higher.

When applying for a loan after bankruptcy, these are the major factors you need to consider:

• Credit score
• How to raise your credit
• Interest rate
• Your income

One aspect that is not true at all is the idea that you will never qualify for a loan ever again when you have just filed for bankruptcy. You can and will recover. Many of our clients have perfectly normal lives. One of the major aspects is understanding what kind of loans you can apply for and what you need to expect.

Smart Debt

When you just filed for bankruptcy, the idea of immediately going back into debt sounds crazy, and for some people it is. If you survived bankruptcy with your home and a car, then there isn’t much need to immediately go back into debt, but you still need ways to raise your credit score back up.

This is why we offer our “2 Years to 720 Credit Score” program. We can help you learn lessons on how to raise your credit score up to a point where you are in a more stable position when it comes to loans and interest rates.

One method we may teach you about is how there is debt that you can put yourself in that would be considered smart debt or “good debt.” These debts include mortgages and car payments. These are daily parts of life that many people already need to go through. You are going to need to pay for a car at some point. If you want to own a home then you will, more often than not, need a mortgage.

When you make these payments, you are taking the steps necessary to fix your credit score, because you are proving with recent payments that you can afford to make payments on time.