Get a bad dredit loan
Those debtors who have opted for bankruptcy as a solution to get out of debts also have very poor credit scores. Bankruptcy often damages the credit scores so badly that repairing the same can take years. Bankruptcy is usually one of the last resorts for the debtors because there are easier solutions like debt consolidation loans and debt settlement that provide better financial solutions as compared to bankruptcy. The risks involved in bankruptcy are also higher and though the bankruptcy helps the debtors to get rid of debts for a temporary period, it does not help the debtor to get a debt free life. Hence debtors should be aware about the different pros and cons of bankruptcy before opting for the same.
Loans after bankruptcy
There has been a rapid growth in the number of people who have debts on their heads. As a result there has been a dearth in the market of borrowers. Usually most people with multiple debts settle for options like debt consolidation loans which restrict their potential for getting new loans. The debtors who had opted for bankruptcy are also not evaluated on a very a good financial potential level by lenders. But this has resulted in a market vacuum for the lenders. Most of the debtors who are no applying for loans have either got poor credit rating or have declared themselves bankrupt. By restricting the grant of loans to good credit debtors, lenders have limited their clientele. Hence to increase the number of loan applicants and borrowers, lenders have now resumed giving loans and mortgages to poor credit debtors and also those who have declared themselves bankrupt.
Types of loans after bankruptcy and bad credit
The loans which are usually provided to bad credit debtors and the bankrupt consumers are known as the bad credit loans. These loans are very higher interest loans. These loans are mainly beneficial for the lenders because they can get much higher rates of interest as compared to the loans which are provided by the good credit debtors. Since the lenders are at higher risks here they demand higher rates of interest also.
How to get bad credit loans?
The process of getting bad credit loans is easy. The debtors have to find and compare various debt consolidators who provide such loans. The debt consolidators check the bankruptcy records of the debtors for the previous 10 years. Then the amount of the loan and repayment are fixed. Usually collateral is also required.