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 with our Maui bankruptcy attorneys, 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.
Preparing for the Challenges You’ll Likely Face
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 of 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.
2 Years to 720 Credit Score
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.
Smart Debt & Good Debt
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.
What About Interest Rates?
Interest rates are going to be a factor that you will have to deal with early on. Luckily, when it comes to a home or car, you may be able to refinance them at a later point and get your interest rates lowered.
If you do not want to risk a high-interest rate on a house or car, then there is another method. You can always get a credit card that is used exclusively for large purchases. Need to repair something? Use your credit card. Do you spend over $100 on groceries every week? Use your card.
As you make payments on your card, you will be repairing your credit, and the interest rates won’t be as damaging because you will be paying them off in their entirety. The interest rates will only come into effect when you miss on payments which, through our “2 Years to 720 Credit Score” program, we will teach you how to avoid.
Contact Us
Don’t let the idea of a low credit score scare you away from bankruptcy. If it’s the only option you have available to you, then take it, because at Blake Goodman, PC, Attorney we can help you get your credit score back where it belongs. We have years of experience helping clients return from bankruptcy.
Our program is meant to do more than that though. When you go through it, you will come out of it a changed person. Bankruptcy is merely the first step in changing your life for the better. Through our “2 Years to 720 Credit Score” program, you will learn how to be more financially and credit conscious.