Once you are discharged from your bankruptcy it will be difficult to obtain an unsecured loan. After all the bankruptcy will remain on anyone’s credit report for up to ten years.
If you have, however, paid off the debts listed within your bankruptcy and have documentation of this pay off, you may qualify for a small loan.
Your best option is to rebuild credit lines. The easiest way to do this is to either get a credit card in your name. Be careful and read all the documentation on the credit card before accepting it. With a credit history in this state you may be required to pay annual fees in order to get a credit card. But do not accept a credit card that will cause you to max it out with the initial fees. The most important lesson to learn is to not charge anything on it. You just want to open a line of credit to re-establish credit. You can use this as a positive credit reference to get approval for a fast unsecured loan.
As per the loan start off with a really small loan amount. As soon as possible pay that amount off. This will establish credit with the bank. You will prove to them that you will repay your debts and quickly. Once you have established a line of credit with your bank you can apply for a larger amount.
You are required to pay each payment on time or at least within the specified grace period. As you make these payments on time you are re-establishing a line of credit from which you will find yourself approved for more substantial loan amounts. Do not, however, miss so much as one payment. You will incur not only late charges but also listings on your credit report showing that you were once again late in paying your debts. This will also decrease any credit score. Your credit score is the most important factor in becoming approved for unsecured loans in an instant. Most banks will not approve a loan without collateral if you do not have an excellent credit score.
You must take steps to increase your credit score in order to obtain more lines of credit. This means on time payments and the elimination of any late listings on your credit report. You may want to get a copy of each of the three credit files available to you. You may want to check for any debts listed negatively.
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