Bankruptcy can ruin your credit score, making it difficult for you to get loans. This makes you a high-risk applicant because you remain in the credit report for many years.
But, worry not because you can get a private loan despite the bankruptcy. Although you might not gain access to the lowest interest rates, your choices can boost it over time as you improve your credit score. Let’s find out how.
Connection with Private Lenders
Today, you can join a private lender that links you up to investors that boast hard money, direct loans, swing loans. Even better, you can also get private bankruptcy loans for your investment with property deals beyond $90 billion loan requests.
Types of Bankruptcy Loans Offered
Many lenders offer two types of bankruptcy loans that include:
Secured: In this kind of loan, the lender will need you to pledge collateral before you book a loan with them. The collateral can be a car or deposit account certificate. The lender can repossess these items upon breach of the repayment obligation.
Unsecured: In this case, the lender doesn’t need you to pledge collateral or risk any of your assets before securing a loan. But unsecured loans come with higher interest rates compared to secure loans.
Many lenders give out more secured loans than unsecured ones. This is because of the risk involved, especially in bankruptcy cases. But it is wise to keep off no-credit-check loans and loans involving excessive fees when looking for a bankruptcy loan.
Applying for A Bankruptcy Loan
It is easy to apply for a bankruptcy loan. But first, check out various lenders to compare viable offers. Once you have settled on your best lender, ask for an APR estimate that shows better measurements than interest rates. Also, confirm the lender’s original fee before signing up for the loan. This will save you from hefty interest rates and faulty initial fees.