Tips To Get Finance Even With Bad Credit

Many think that Bankruptcy is the end of the story. It is the situation which is the most undesirable for most of the people. It affects the credit status badly and it takes years to rebuild. However, if one is looking for finance here is what they need to follow to get a low interest loan for themselves?credit ratings

  • Log on to the sites of any of the credit bureaus, register yourself by providing your credentials and request for a copy of your credit report and score. As per the law, the three credit bureaus have to offer free credit report once a year.

  • Once you get the report, go through it carefully. Since you are facing bankruptcy, this will reflect in the credit report. However, if there are other discrepancies or wrong entries you should contact the respective credit bureaus in writing and submit them the necessary documentation so as to get them removed from the credit report. This will enhance the credit rating and hence the chances of getting the desired finance from the lender of your choice. Credit bureaus investigate the case on their own and confirm the findings to the customers. In case the request is found to be valid they remove it from the credit report within a timeframe of 60 days.

  • If you are looking for finance of your car, you need to work out the car you are looking for, the cost of the car, the amount you can pay as down payment, and how long do you intend to take the loan offer? These are some of the vital facts which will help you when approach the lender. It is always advisable to take a copy of the credit report and the credit score to the lender while applying for the loan. Thus the lenders will not do a hard pull on the credit report and this will save the credit report from the harm caused by the same.

  • Whether you are looking for an auto loan or any other kind of loan it is best to look out for all the available options online. While you are applying online, tell the lender about your bankruptcy situation first and then ask for the other terms which you can be offered. In case of bankruptcy, even the online loans might take a day or two as they do the necessary checks pertaining to their underwriting rules before confirming you the exact status of the loan and also the amount, interest rate and the loan term that you can be offered.

  • You must acquaint the lender with the steps that you have taken post bankruptcy to enhance your credit rating. The number of debts that you have repaid and the way you intend to repay the loan that you have applied for.

  • While taking any loan it is best to compare your loan options. The lender might not offer great interest rates and terms in the beginning. However, once you take the loan and continue your repayments for a period of 6 months you can reconsider the interest rates and the other loan options. By this time your credit rating must have improved and hence you can renegotiate the loan terms with your existing lender. However, one must have the exact knowledge of the prevailing market rates for the particular personal loans.

Following the above steps one can easily get the finance even after bankruptcy. One needs to be extra cautious and take steps so that they do not fall into the bankruptcy condition again. Here are a few things which need to be done:

  • Pay all your utility bills and debts on time

  • Ensure that you use the credit card wisely and clear the complete outstanding every month.

  • Try and clear all your debts as early as possible.

 

Dilip Kumar

+Dilip Kumar (Author and Editor of The Tax Info) is a Chartered Accountant from Hyderabad, Loves Blogging on Tax related matter.

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