The repercussions of a bankruptcy can weigh on you for up to ten years. In the past it was difficult to get a personal loan after bankruptcy. Today, bankruptcy personal loans are advertised in such a way that they are enticing to those who are trying to repair their credit ratings and they are gobbled up by people who have recently filed bankruptcy. You should be careful that you are not making your situation worse when you apply for bankruptcy personal loans and credit cards.
You should keep in mind that after a bankruptcy, it will be difficult to find decent personal loans and credit cards. This means that credit card offers (and personal loans that are offered to you) through unknown lenders should be thoroughly investigated. What is the catch? Are the interest rates blown up to such a high degree that you would never be able to pay off the debt if you made the monthly payments? Why are they so willing to give credit to someone who weeks ago filed bankruptcy?
Reputable lenders who offer bankruptcy personal loans wait two years before extending credit. They want to see that you have been working to improve your credit status after a bankruptcy. If they see that you have acquired five credit cards or personal loans and maxed them out, they will probably not be inclined to offer you a personal loan. They will look at you as someone who has fallen off the wagon and gotten mired in debt, again.
Why does it matter what these well known loan companies think? Well, it is the reputable bankruptcy personal loan companies that will be the ones you will be turning to if you need to finance a vehicle, college loan or even a new home. Don’t get fooled by scams. Wait the required two years and apply for a bankruptcy personal loan that will help you credit, not do more damage.