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Step 1
Ensure the bankruptcy has been discharged. Lending institutions will not entertain the thought of lending money to anyone in the process of a bankruptcy. Make sure the bankruptcy has been discharged and that you have the necessary paperwork to prove it.
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Step 2
Understand how much you can afford. Take time to understand how much you can afford to borrow and how much it will cost you monthly to pay it back. To be on the safe side, it’s best to underestimate the amount you can afford to pay than overestimate.
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Step 3
Talk to a loan officer before you apply for a personal loan. Getting as much underwriting information as possible from a loan officer gives you a better understanding of what information banks are looking for when offering personal loans to individuals who have a bankruptcy on their credit report.
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Step 4
Pay your bills on time. Now that the bankruptcy is discharged, part of the credit rebuilding process is proving to lending institutions that you can pay your bills on time. Having proof of consistent timely payment will work in your favor when it comes to applying for a personal loan after bankruptcy.
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Step 5
Give it time. The longer the time between the bankruptcy and the application for a personal loan, the better the chances for getting approved. The additional time gives you a chance to prove how you have learned from your mistakes and are a better candidate for a personal loan.
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Step 6
Review your credit report. Make sure you know what is on your credit report before you apply for a personal loan. Although the bankruptcy discharged the debts, make sure the credit report reflects the same information as the bankruptcy papers. Mistakes do happen and you want to be able to correct them before submitting your loan application.
