If you are planning to apply for a consumer loan after bankruptcy, here are three steps that could help: 1) Increase your credit score prior to applying for a consumer loan after bankruptcy Ideally want to increase your credit score before you apply for a consumer loan after bankruptcy. Why? Because a higher credit score could mean a lower interest rate. Depending on what you're financing this could save you $100s or even $1,000s in extra interest and other finance charges. So how can you increase your credit score to potentially lower your interest rate on a consumer loan after bankruptcy? There are a number of different ways. One way is to have any inaccurate or obsolete negative items removed from your credit reports. Another way is to add positive accounts to your credit report. These are just two examples - there are more ways you can increase your credit score. Again - if you are able to increase your credit score enough, it could potentially reduce the interest rate you pay on a consumer loan after bankruptcy. 2) Talk to the lender before applying for a consumer loan after bankruptcy Before you complete a credit application for a consumer loan after bankruptcy you will want to see if the lender would even consider approving your application. How do you find out? You ask. For example, will the lender consider someone with a recent bankruptcy on their credit report? Do they require a minimum credit score? These are just two questions you need to ask - I cover more in After Bankruptcy Credit Solutions. If it turns out that the lender would not even consider your application for a consumer loan after bankruptcy, then you save the time and effort of submitting it in the first place. In addition, you also avoided having an inquiry placed on your credit report from the lender. 3) Negotiate reasonable finance terms on a consumer loan after bankruptcy Once you've increased your credit score and found a lender who would consider you for a consumer loan after bankruptcy, you will want to try to negotiate the most reasonable finance terms - that is, the interest rate and other finance charges. How can you negotiate finance terms on a consumer loan after bankruptcy? Much depends on the type of loan - auto loan, home loan, personal loan, etc.. One way is to shop lenders - if you find two that will approve you for a consumer loan after bankruptcy, compare the finance terms. You can also ask for a lower interest rate - again much depends on what you're financing, but it doesn't hurt to ask. In After Bankruptcy Credit Solutions I go into more detail on negotiating finance terms. You now have three tools you can use when it comes to applying for and negotiating a consumer loan after bankruptcy. It may take some time and effort on your part, but the rewards can be well worth it! ==================================== Copyright 2006 Innovative Solutions Publishing, Inc. All rights reserved. The company and product/service names referenced in this article are the trademarks, registered trademarks or service marks of their respective owners. None of the owners have sponsored or endorsed this article. DISCLAIMER: This information is designed to provide only a general overview of the subject matter herein. This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought. Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein. ==================================== |
