Any financial advisor worth his or her salt will tell you that bankruptcy should be avoided if at all possible. While they are right, bankruptcy shouldn't be declared unless you truly have no other way out of your financial quagmire; it isn't quite the black hole that your financial advisor might tell you. It is possible to "rebuild" after bankruptcy. There are even options for personal loans after bankruptcy.
If you have declared bankruptcy within the last decade or so and find yourself needing a loan, you have a few options available to you.
1. If you aren't in dire need of financial help, you can concentrate on spending a year or two rebuilding your credit as much as you possibly can before the loan becomes a necessity. By doing this, some people find that they end up not needing the loan after all!
2. Find a lender that specializes in personal loans for people whose credit is bad. There are plenty of them out there but you will have to agree to higher interest rates, stricter loan repayment terms and usually a longer repayment period. Of course, if your finances have (once again) become dire, it might be your only option.
3. If you didn't lose your home when you declared bankruptcy and haven't had the equity stripped from you, you might consider trying to take out a second mortgage on your home. Second mortgages are also called secured loans and they require that you use your home as collateral against the balance of the loan. These loans can be dangerous because you stand to lose your home if you don't pay your loan back on time and in full.
4. If you aren't in need of a large loan you might consider taking out a payday loan. Payday loans usually "top out" at five hundred dollars, but they do not require you to pass a credit check. All you usually need to qualify for a payday loan is a checking account that is in good standing and steady employment (between one and three months at your current job).
5. Sometimes after bankruptcy you will qualify for a secured credit card. These credit cards come with an annual fee that is charged to your credit account. These credit cards don't usually come with a very high limit, but they are certainly better than not having any credit at all. Make sure that, when you repay this credit card that you are paying your bill every month and make sure that you are paying more than the minimum amount due.
The good news about most of these options (the exception being the payday loan) is that when you pay your loans back on time and follow your repayment plans; you are re-building your credit score and history. That is the great thing about your credit score and history...it is only temporary! If you are serious about rebuilding your score it is doable, and eventually, even your bankruptcy filing will stop being a factor!
You can find out more about
Personal Loans After Bankruptcy
as well as much more information on all types of personal loans at
http://www.PersonalLoansA-Z.com
