he misfortune to declare bankruptcy recently,
then you definitely know what a struggle it can be to get
funds. Not only do you have a limitation on your ability to get
funds from most lenders, but even getting a credit card will not
be easy. However, one option that you do have, if you possess a
house, is the equity that is in the house. Here is how you may
still be able to get the needed loan you want by the equity in
your house.
After a bankruptcy, you will probably need to wait about two
years before most lenders will give you any money. They
calculate that it will probably take about that long to begin
to get reestablished financially. So, in the interim, you will
want to be careful to build your credit rating and do nothing
to make it any worse than it is. Also, look over your credit
report and see if there is anything on it that is not correct.
If there is, work to get the necessary corrections before you
apply for any loans.
The good thing is that your creditors know that you want to
keep your house. Other things may have been lost but you have
kept the house. They also figure that you still plan to keep it
- even after they issue you a loan. That gives you some
stability in their eyes, and even makes you a rather good risk.
Even if you should decide to not make the payments, they still
will have the house to recover their losses.
This makes it look rather good to them. As long as other things
look good, like you’ve had your job for a while, make a decent
salary and do not have a lot of other debt you are paying on
now, then you may very well be able to get the loan you want.
Even then, you may still want to check around to make sure you
get the best deal. One way to do this easily, is to apply
online and get several quotes from a broker. This way you just
fill out one application and you may receive several offers. It
would be a good idea to see several offers, and compare them to
find the best option.
Be sure that you will not be able to get really good terms – at
least not nearly as good as someone with good credit. You will
most likely have not only higher interest, but shorter
repayment terms, too. They will also cut down on the size of
the loan you can get, too.
A possibility exists, though, to work on getting a better loan.
When you find someone will give you a loan, make it a small one.
Get one that you can pay back in a short time. This way, you can
start to rebuild your credit and get a larger one on better
terms before long. The bankruptcy mark will stay with you for a
while, but you still can have access to some of the loans you
may need.
About The Author: Joe Kenny writes for the UK personal finance
sites http://www.ukpersonalloanstore.co.uk and also
http://www.cardguide.co.uk
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