People face debt differently,
and sometimes they are required to file for bankruptcy
in order to pay off all of their creditors to get a fresh start. When you file for bankruptcy in the United Kingdom, you are giving the court’s permission to make a decision on how to handle your outstanding debt. Many people feel that they will never be able to get another loan once their bankruptcy is discharged, but this is not true. If you wait an ample amount of time after your bankruptcy is discharged – about three years is advised – you could qualify for an unsecured loan. These loans, when granted after bankruptcy, are a good way for you to start rebuilding your credit.
It is difficult for people who have filed for bankruptcy to get a loan,
and many lenders will not take the risk on you. If they decide to give you the chance, you are facing paying higher interest rates than what people with good credit will qualify for. Additionally, if you have CCJs, arrears, defaults or late payments on your credit report without a bankruptcy you are still facing the same type of problems getting a loan. Since bankruptcies do not pay off all of your debts, getting a loan after bankruptcy can help you turn multiple payments into one affordable one.
Unsecured loans that are granted after bankruptcy can range between £1,000 and £25,000. How much you qualify for is based on how much money you are bringing in as income and what your other debts are. Because there is no collateral involved in unsecured loans, the banks have to charge a higher interest rate in order to protect their interest in the event that you should default. However, each lender is different and if you need a loan after bankruptcy it is a good idea to shop around and find the best loan available to fit your financial circumstances.
- After bankruptcy, loans also help you rebuild your credit as long as you pay them on time every month and do not miss a payment. Regularity is a big consideration, and if you do not think you can make the payments on a regular basis then you should reconsider taking out the loan. It is a good idea to sit down and review your finances to make sure you can actually afford the loan. With today’s economy being so bad, you do not want to count on being able to work overtime or even get a second job to pay for the loan. It is better to find an alternative solution. If you can afford the loan, it is advisable to keep it as small as possible so you can be assured of managing the repayments.
One option that is available to you is trying for an online loan through a reputable lender. We can help you here, if you fill out some personal details. Quite often they are processed quicker and you can have the money in your checking account fairly fast. After bankruptcy loans for small home renovation, education costs, medical expenses, car repairs, and other short term needs are a great way to get started on the road to rebuilding your credit. Just make sure you can afford the loan.