Getting A Loan After A Bankruptcy Can Be Done With A Little Preperation

Posted on: 29 February 2016

If you are going to be applying for a home mortgage or a car loan, then you want to do everything you can to increase your chances of being approved and of getting the lowest interest rate possible. If you have gone through a bankruptcy, then you may need to work on your credit some before you go in to apply for the loan. The tips here will help you get your credit score looking good so you can be in a better standing to the lenders.

Watch your credit reports

If you are a victim of identity theft, you want to know this right away before too much damage is done to your credit. Also, you want to know that false accounts aren't getting put on your report for other reasons. This is why it's important for you to join a credit monitoring service that alerts you to changes. The companies that offer this also tend to provide you with other tools to help with your credit, such as tools to instantly argue wrong information.

Start adding to your credit

If you are fresh out of bankruptcy, then you want to start opening some credit lines so a good payment history can begin being made. Don't apply for a lot of new accounts at once. Each time your credit is ran, it will put an inquiry on your report. One or two inquiries aren't a big deal, but a lot of them in a short time period can negatively affect your score. Open one account and work at paying it faithfully before moving on.

Start with a secured credit card

When you are right out of bankruptcy, it will be extremely difficult to find a traditional credit card to accept your application. Go with a secured credit card that requires you to put down the money upfront that will become your credit line. Secured credit card payments and balances still get reported to the credit reporting agencies.

Be prepared

When you go in to meet the lender, make sure you are prepared with all the paperwork the lender will want to see and any other paperwork you feel can help make your case in proving you are credit worthy. You want to have two year's worth of bank statements, tax returns, proof of employment, copies of your monthly bills, credit references and any other paper work you feel will help. Contact a company like Saginaw Medical Federal Credit Union for more info.