Filing for bankruptcy can be a tough and life-changing experience. The financial stress along with emotional pressure is difficult for any person to grasp. As tough as the process is, you are not alone. According to AFSA, There were 16811 new bankruptcies in Australia in 2017 – 2018, an increase of 3.0% from 2016-2017.
You may think that you are stuck in a spiralling hole. However, there are many options to get back on track. If you have declared bankruptcy, you can still apply for a personal loan. A personal loan can help if you have a bad credit score, are unemployed or declared bankruptcy. If however, you are still recovering from declaring bankruptcy it is important to know that your credit score will be affected. This will limit your ability to secure new debt at lower interest rates.
Boost your chances of securing a personal loan with the following tips
Employment:
To be eligible for a personal loan, you must demonstrate to your lender that you are employed and have a steady income. If you are self-employed or working part-time, a traditional bank may not accept your request. Alternative lending agencies may, however, assess your situation and tailor a flexible loan solution. Regardless, it is important to check the lender’s rules and regulations before applying for a personal loan.
Assets:
If you are looking to apply for a personal loan after recovering from bankruptcy, you may want to assess how many assets you have. An asset is something that provides value once converted to cash. This may include property, cars, inventory and even Jewellery to list a few. An asset is needed to secure a loan. This will ensure that the lender will have at least some form of a guarantee that you won’t default on your loan.
Control
Taking responsibility for your actions, and actively managing your debts and repayments will lead to a higher chance of securing a personal loan. To do this, you will have to present positive credit history and adequate income to lenders. You must also demonstrate that you are in control of your finances and are able to pay off any debt and tax. Budgeting planners can help you monitor finances. If you do have a low credit score, there are credit repair agencies that could remove any past defaults, judgements or even blackmarks off your credit file.
Apply with a co-signer
If your personal loan is not accepted, you may consider reapplying with a co-signer. A Co-signer or guarantor with a strong credit history and good income may help you get over the line. If in such case you cannot pay the loan back, it is important to remember that the co-signer will be responsible for making the repayments.
Payday Loans
If you require short term loan that don’t value, you may apply for a payday loan. These loans range between $1000 and $10 000. The repayment terms are typically between 16 days and 1 year.
Bad Credit Loans
At Bad Credit Loans Australia, we simply don’t turn you down if you have a bad credit score. We offer a range of flexible and tailored loan solutions that are suitable to your financial circumstance. We believe in giving you the best chance to get back on track. Click here to learn more about our bad credit loans.
