Can I get a poor credit car loan if I am a declared bankrupt?

Introduction

It’s a fearful experience to see your financial stability sloping downwards. A financial adviser can help you create and stick to a budget, and your utility companies may offer you a hardship payment plan if you speak to them about your predicament, this hardship payment plan will go a long way in cushioning the effect of the breakdown.

Sometimes, however, there are certain aspects of your financial situation that are out of your control, and you may find yourself looking at. If that does happen to you, you’re not alone. Because we have thousands and thousands of people yearly declaring bankruptcy, yet as awful as the experience might seem, they made their out the situation and got back on their feet financially.  Even though it might take a reasonable amount of time for your credit profile to be declared free from bankruptcy.

What to do

In the meantime, lets concentrate our effort to look at some of the things you can do to boost your credit worthiness before your creditors, they include ; paying up your bills on time, clearing your debts, and do all you can to keep your finances in check. This will all pay off in the long run, showing creditors you’re back in control. Perhaps, your creditors having seen that you’re making efforts to get back on your feet will then decide to trust you with a loan.

But if truth must remain true, then i must say this that it is stressful and hard to secure a loan having declared bankrupt since the level of trust your creditors would have on your ability to pay back is not strong enough. So the borrower must be timely in his approach to getting the loan especially when he has been discharged of the bankruptcy. Learn more.

Loans after bankruptcy

Obtaining finance (for example, a bad credit car loan ) while you still hold your bankrupt status is pretty slim; lenders want to see that you have improved your position and are on the road to financial recovery before taking that risk.

Bankruptcy typically lasts for three years, however it stays on your credit profile for five years. This can make it hard for you to obtain a loan after being discharged from bankruptcy. However, it is not impossible.

If you’ve recently been discharged from bankruptcy, be careful not to apply for a stack of loans at once, as this will appear on your credit profile and may drop your credit score. Apply for only one loan at a time, making sure to do your research and look into which company may best suit your needs.

 

Bottom line

So, in a nutshell, yes – you can get a loan if you’ve been declared bankrupt. However, you’ll have to be discharged from bankruptcy before most lenders will oblige. Brokers such as Rapid Finance have a ‘second chance’ approach when it comes to their clients, helping thousands of people get back on track and on with life. For more details, visit: https://www.everyday-loans.co.uk/bad-credit-loans/