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How to Obtain a Loan Following Bankruptcy

How to Obtain a Loan Following Bankruptcy
"""From 2005 to 2007, when the economy was booming, anyone with a pulse could obtain credit. Obtaining a loan was simple, regardless of whether the borrower required the funds for a car loan, a mortgage, a business venture, or for personal reasons.

No longer is this the case. If you want to qualify for a mortgage or auto loan with a reasonable interest rate and reasonable circumstances, you must have a credit score of 650 or higher, the higher the better. A bankruptcy has negative effects on your credit score that last between 7 and 10 years; consequently, most individuals who have recently filed for bankruptcy will not qualify for a traditional loan.

Here are your best two choices:

Obtain a loan from a relative or close friend. If things do not go according to plan, this is an excellent method to lose a friend or sever ties with a family member. Also, will this be a gentleman's agreement, or will there be formal documentation? Will interest be charged on this loan? What happens if you are unable to repay the loan? There are too many unknowns and negative consequences associated with borrowing from a friend.

2. Peer to peer lending. If you need money to pay off a credit card, establish a business, or buy a car, you can typically obtain it through an online peer-to-peer lending website. Prosper and Lending club are two outstanding alternatives. With a poor credit score, you'll pay interest rates of 20% or more, but these sites are legitimate and may be your only option.""

" - https://www.affordablecebu.com/

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"How to Obtain a Loan Following Bankruptcy" was written by Mary under the Finance / Wealth category. It has been read 57 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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