Bankruptcy Car Loans - What You Need To Know

Bankruptcy is a big step that should never be undertaken lightly. Perhaps you have recently been through bankruptcy or are considering filing for bankruptcy. The type of bankruptcy protection that you filed for or will file for will make a big difference in the speed with which you will be able to rebuild your credit file and qualify for loans, such as those needed to purchase a car, truck, or SUV.

Chapter 7 Or Chapter 13? It Matters When Considering A Bankruptcy Car Loan

While every bankruptcy is unique, most bankruptcies fall under two categories - Chapter 7 or Chapter 13. Under a Chapter 7 bankruptcy proceeding, your property is sold and the proceeds of your property are divided among the creditors or lenders that you chose to include in your bankruptcy (other than student loans or other government obligations that you owe).

Once your creditors have received their share of the proceeds from the property that is sold during Chapter 7 bankruptcy, your creditors can no longer collect on the debt that you owe them. This debt is referred to as discharged debt. Chapter 13 bankruptcy allows a borrower to restructure their debts by working with a trustee who forms a payment plan that is paid over a period of five years.

Whether or not you will qualify for a bankruptcy auto loan will depend upon which chapter of bankruptcy that you filed. Those who have filed Chapter 7 bankruptcies should have no trouble qualifying for this type of loan; those who have filed Chapter 13 bankruptcies, on the other hand, will have to meet with their trustee and be approved to take out a loan according to the budget and the repayment plan that has been set up through the court for their debts.

Put Yourself Behind The Wheel With A Bankruptcy Car Loan

If you have had your debts discharged under a Chapter 7 bankruptcy proceeding, you are in good shape to apply for and be approved for a bankruptcy car loan. You have a new appeal to certain lenders because you are now debt-free, regardless of how you got there. Lenders know that you cannot file another bankruptcy proceeding for a specific number of years, and this makes them more willing to trust that you will honor the terms of your bankruptcy car loan.

The basic requirement to receive a bankruptcy car loan for those borrowers who are fresh out of Chapter 7 bankruptcy is that the borrower can demonstrate that they have an income that is adequate enough to meet the loan requirements and the monthly payment. It helps to improve your chances of getting the best terms on your bankruptcy car loan if you provide a down payment of some sort; even a small down payment such as $1,000 or $1,500 can reduce the rate of interest that you pay, saving you money over the course of your loan.

For borrowers who are restricted to the Chapter 13 bankruptcy guidelines in order to apply for credit of any kind, getting a bankruptcy car loan is still possible if they can demonstrate that they can make the monthly payments on the car.

Hard Money Loans Help Avoid Bankruptcy

When being bogged down by a mountain of unpaid debt, it can oftentimes feel as if bankruptcy is the final and only available option to regain your financial security. But many people are reckless in filing bankruptcy, taking it as an easy way out. Bankruptcy is a serious action, the results of which can stay attached to your credit file for an entire ten years in some cases, haunting you as you attempt to get the loans that you need, rent an apartment, buy a house, or even obtain insurance at a reasonable rate.

And since more and more potential employers now check the credit record of their prospective employees, a bankruptcy notation on your credit file can even lower your chances of getting the dream job that you have been working so hard for. For this plethora of good reasons, smart borrowers are turning to consolidation of their debts via private party loans in lieu of the drastic measures of bankruptcy.

What Are Hard Money Loans?

Hard money loans are loans that are made using the funds of private lenders, and many borrowers are having an easier and more hassle free time securing loans for consolidation of unpaid debt than other more traditional options. Being approved for this type of loan is easier than traditional loan products because approval is based more upon assets than on credit history.

Private lenders are not held to the strict lending and underwriting practices that govern bank lending, and this allows them the freedom to loan money to a greater number of borrowers, even those with bad credit.

Advantages Of Hard Money Loans

Hard money loans can allow you some relief from your debt much faster than a conventional loan can. Although every borrower is different, those borrowers who take advantage of these loans can find themselves free of debt with a few years; traditional debt consolidation can take a decade or longer. This is due in large part to the deflated rate of interest that is found in hard money lending, which puts your debt at a more manageable level and allows you to pay more of the total principle that is owed on your debt each month.

Hard money loans are better for your credit than bankruptcy, obviously, but perhaps even better than loan consolidation with a typical lender. Why, you may ask? Simply put, many of the debt consolidation companies out there only worsen the situation that borrowers are facing. Hard money loans allow you to build positive payment history by actually paying off the debt you owe faster, without falling behind.

Before you take a hard look at bankruptcy, consider a hard money loan. Bankruptcy can leave a stigma on your credit record that takes a big part of your lifetime to overcome. Bankruptcy demonstrates in one of the harshest ways possible that you are more than willing to walk away from your debt, and your responsibilities. Hard money loans can give you freedom over your finances once and for all, while avoiding bankruptcy.

Debt Consolidation For Bad Credit Borrowers

If you are like most Americans, you have a mountain of debt, and perhaps have extended your finances to the point that you have been late on payments or even defaulted on some of your existing loans. A few financial missteps can often have dire consequences when it comes to your credit report and score, but debt consolidation can allow you to slowly rebuild your borrowing history to a more favorable position while you get yourself out of debt, once and for all.

How Debt Consolidation Works

In debt consolidation, a servicer will pay off all of your existing debts and you, in turn, will make just one payment each month to your new lender, usually at a much reduced rate of interest. The lender will place a lien against your home until you have completely repaid them for the amount of money extended on your behalf to pay off your previous lenders.

It is important that you know the risks of debt consolidation when placing your home up as collateral to secure funding; if you default, your lender can foreclose upon your home to receive payment. For this reason, many folks elect to go for unsecured debt consolidation, which does not involve pledging collateral. However, for the bad credit borrower, it is hard to be approved without giving the bank something to hold on to as security.

When you decide to go forth with debt consolidation, always do some comparison shopping to determine which lender offers the best deal. Never agree to a payment that is beyond the reach of your budget. Pay special attention to the interest rate that you will be charged during the process - even a half-point difference can save (or cost) you thousands of dollars in future payments.

Ideally, your debt consolidation should have a term of five years or less, although there are some borrowers who extend it for up to ten years. The idea behind it is to become debt-free, and that is most easily accomplished when you have a term that is short and allows you to see the fruits of your efforts in the least period of time.

Changing Your Spending Habits After Debt Consolidation

Your previous behavior as a borrower has resulted with you having a less than stellar credit score. Debt consolidation will allow you to pay off your existing debts, including those that are costing you outrageous amounts of interest. However, any credit card balances that you had will now be brought back down to zero, which often causes the borrower to start accruing more debt.

Your best bet: close all of your credit card account except for the oldest and most established one that you have. Use this one credit card to purchases necessities that you must have, and pay it off each month other than running one-third of the available credit line as a balance. This will add points to your credit score. Avoid impulse buys or splurges, and become a good steward of your available credit in order to improve your financial outlook.

How to Get Personal Loans After Bankruptcy

Bankruptcy can turn your financial world upside down. Bankruptcy leaves an indelible mark of negativity on your credit file that can hard to escape. If you have filed bankruptcy this year, you certainly are not alone. There are over a quarter of a million bankruptcy petitions filed each quarter of the calendar year, on average, in the United States alone. There are many factors behind the rise in the number of bankruptcy proceedings - including the economic downturn and financial crisis that has left many American workers jobless.

Perhaps you are among those left looking for work without money for your bills - or maybe you have experienced a recent illness or injury that left you unable to work and therefore you became delinquent on important monthly payments - such as your mortgage or car payments. Filing bankruptcy becomes the only option for many individuals - and provides a means for them to protect their assets from foreclosure and repossession. If you have recently come out of bankruptcy - now is the time to begin rebuilding your future and improving your borrowing outlook.

Recovering Your Good Name

To begin the process of rebuilding your borrowing reputation and your good name, you should start with a personal loan. A personal loan can be either secured or unsecured, and there is a big difference between the two - mainly the amount of interest that you will pay on each. Because of your new status as a borrower who has filed bankruptcy - you should expect to pay more interest on either than the normal borrower would. Keep in mind, however, that paying a bit more interest now will help build your credit back up in order to qualify yourself for bigger loans with less interest later down the road - once you have established your newfound ability to manage your credit.

Two Versions Of The Personal Loan

A secured personal loan after bankruptcy is the easiest to obtain financial product that is available to borrowers of all incomes. A secured loan is a loan that is backed up by pledged collateral - typically your home or late model automobile. Your lender will place a lien against the property that you pledge for collateral that will be removed when you completely repay the lender. You can get secured loans from $1,000 up to $20,000 - depending upon your income and your ability to repay the lender for the money they extend to you. It is most generally accepted among financial advisors that individuals who have experienced recent bankruptcy start out at $5,000 or below for their first personal loans following bankruptcy discharge, but you may ask for more if you have a true need and are completely sure that you can repay the amount with ease.

An unsecured personal loan following bankruptcy is a bit harder to get. These types of loans are the riskiest in the eyes of the lender because they are not receiving collateral against the loan. It is most advisable to apply for the unsecured version of the personal loan with a creditworthy cosigner who will stand behind your ability to repay the lender.

Online Lenders Specialize In Post Bankruptcy Lending

You can find the loan products that are specifically tailored for your personal situation after bankruptcy on the Internet. There are many lenders who specialize in post bankruptcy personal loans that offer these loans online for borrowers at great rates that are highly competitive with traditional walk-in banks.

Unsecured Loans For Borrowers With Horribly Bad Credit

Do you have the worst credit possible? You are not alone. There are literally thousands of borrowers across the nation who have damaged credit and poor credit records that keep them from getting the loans that they need for expenditures that must be addressed immediately. But there are ways to get an unsecured loan, regardless of your horrible credit and your history of poor credit performance. You, too, can become the recipient of an unsecured bad credit loan to meet your funding needs and afford you the opportunity to raise your credit score.

Get The Money You Need Now

An unsecured loan for bad credit is a loan that is unsecured by any type of collateral that you have pledged. This is a risky type of loan for any lender to make, regardless of the credit record of the borrower. For this reason, many lenders will ask bad credit borrowers to furnish them with a cosigner for the unsecured bad credit loan. A cosigner can be anyone who believes that you will honor your lending agreement when you receive your bad credit unsecured loan. Some lenders will also release your cosigner from liability to repay them on your behalf once you have established your intention to pay by making the first six to eight payments.

Loans Up To $20,000

Most unsecured bad credit loans start at around $5,000 and may go up to $20,000 or more. The lender will look at your ability to repay the loan based on your income. Be certain to borrow only the amount that you need, and always make your scheduled payments on time - before the payment due date whenever possible.

Becoming A Better Borrower

You can use your unsecured bad credit loan to improve your credit. It is important to understand what potential creditors are looking for in a borrower if you want to make a true effort to improve your credit ranking. Your FICO credit score is the scale that lenders use to determine your creditworthiness (or lack of) - and having a FICO score that is less than six hundred places you in the category of having bad credit. Your FICO score is based on several different factors, the greatest of which is your payment track record - or the timeliness of the payments that you have made in the past to other lenders who have taken a chance on you.

If you have missed payments or been late on payments in the past, then your FICO score will reflect this negative behavior to potential lenders. Lenders also look at your FICO score to determine the amounts of credit that you have had access to and how you handled that responsibility - which basically means they want to see if you maxed out your credit cards or other similar behaviors. Keep in mind what creditors see when they look at your credit score as a way to improve your future credit behavior and elevate your credit score.

How to Find Bad Credit Student Loan Options

The cost of attending college seems to escalate each year - and students have an abundance of expenses that often go unmet. If you have bad credit, you might be wondering what options you might have (other than federally subsidized Stafford of Perkins loan options). In fact, you can receive a bad credit student loan that can help you pay for everything you need to get the best education possible.

Money Above Student Aid

Most students qualify for some form of government student aid. Government student aid is, at best, a good way to cover the bare essentials of attending the college or university of your choice. Many students take out Stafford or Perkins loans, but there are strict borrowing limits that are based on the number of college hours you have under your belt, and though these loans help - there are still unmet needs for most students.

A private student loan for bad credit can help you pay tuition, housing, book expenses, and more. A private student loan for bad credit can also help you be able to work fewer hours at part time jobs or doing work study activities, and thus increase the amount of time that you spend studying and thereby improving your grades. A private student loan for bad credit is a credit-based loan, unlike government student loan products, and therefore requires a credit check. Regardless of your bad credit, however, there are lenders who will grant you the money you need.

Improve Your Chances To Get Your Money Today

You can further assure that you receive your bad credit student loan by applying with a cosigner. Parents make the best cosigners, of course, but other individuals can also qualify to cosign your bad credit student loan with you. Other than your parents, you can have other relatives or friends that have better credit than you do sign alongside you on your bad credit student loan application.

By having a cosigner sign with you on your application, the bad credit student loan lender looks at the credit rating of your cosigner when deciding whether to grant you the amount of student loan money you ask for; thus, having a cosigner makes your application look much more appealing to the lender.

Borrow Enough For Entire Year

When deciding upon the amount that you wish to borrow in your bad credit student loan, be conservative. Borrow only the amount that you truly need for either the semester or the academic year. Unlike government student loans, private student loans for bad credit disburse all at once - which means that the loan is meant to last you for the entire semester or academic year. Bad credit student loans can be from $5,000 to $25,000 for each year you are enrolled in school.

Bad credit student loans are often available online at better rates of interest than what you would find with traditional lenders. These online lenders also have more capital, which means they can loan money to more borrowers than traditional banks can, and therefore tend to have the highest approval rates in the industry. Also, you can choose to have your bad credit student loan funds deposited directly into your checking or savings account.

Learn How to Get a $10,000 Bad Credit Personal Loan

Has your credit reached a point that you can no longer receive a loan because you have derogatory information being reported to the credit bureaus? You are not alone. There are millions of individuals who have bad credit, and more are joining their ranks each day as the cost of living has increased and wages have remained stagnant. Perhaps you have been behind on some payments, such as your mortgage or automobile loan. Or you might have had a credit card payment that was sent in late. These things happen and are happening with more frequency now that the world is involved in a financial crisis. You can, however, borrow up to $10,000 today by taking out a personal loan.

Secured and Unsecured Personal Loan Choices

There are two basic types of personal loans, secured and unsecured. The secured personal loan is by far the easiest to obtain. In a secured personal loan, you will pledge collateral in the form your home or automobile. Collateral that is pledged against your secured personal loan can be sold in the event that you fail to honor your repayment agreement, which makes the secured loan more favorable for lenders because they are not taking a huge risk when loaning you money. This lower risk for the lender translates to lower interest rates for you and therefore makes your repayment easier, as you will be paying back less money.

The unsecured personal loan is harder to obtain as you will not be placing any form of security against the loan. The lender will be relying on your personal integrity to ensure repayment, and thus the interest rates that you will pay will be escalated to account for the added risk. You can increase the probability of being approved for an unsecured personal loan by applying with a creditworthy cosigner. The cosigner that you select should have better credit than you and be willing to stand good for your personal loan if you should default or fail to honor your loan agreement. Applying with a cosigner that has established a good credit history can mean that you will receive more agreeable interest rates that will make your monthly payment easier to manage.

Amounts Up To $10,000 Or More

Although personal loans are available in amounts of up to $10,000 (or more depending on your personal situation and income), you should use caution when borrowing. Borrow only the amount of money that you can easily repay based on any budgetary constraints that you have - such as current loans or credit cards that must be paid on each month. Never agree to a payment amount that you cannot fit into your budget without sacrificing other needs.

Beat The Credit Crunch Online

More and more borrowers are finding that they can be approved more easily and more quickly by applying online for their personal loans in amounts up to $10,000, especially now that lenders are tightening their belts during the credit crunch that is sweeping the country. Online lenders have more money to loan than local banks do, and are usually more willing to take risks than smaller banks who may be struggling to stay afloat themselves.