Is it possible to get a loan when dealing with a bad credit history? How can you repair your credit? We’ve gathered a list of suggestions that will help you overcome this problem and improve your credit file!
In unstable times, managing a business can be tough, and sometimes you have to deal with bankruptcy. And when things are just starting to settle down, you become aware of some other problems such as a bad credit file, or the inability to receive a loan.
According to the circumstances that lead to bankruptcy, the outcome of your business will appear on your record history for five years or even more.
How to repair your credit after a bankruptcy?
- Have a stable income
Having a stable income will prove lenders that you can support yourself and pay back any loan as you will be getting regular paychecks. A monthly wage shows that you’re a reliable person that can be trusted to receive a loan.
- Start a savings account
Easier said than done as putting money aside each month takes determination. Being able to save a small or large amount of money and not touch it says that you can be trusted to administrate your finances.
- Get a term deposit
Place the amount of money you have into a term deposit. In case you’ll need a loan, this deposit could be used as proof that you are responsible enough to ensure your financial stability in the future.
- Make fewer credit applications
After dealing with bankruptcy, try to ask only for loans that you know will get approved. Do that by limiting your number of application and always go with a joint account or a secure loan. Approved loans will give lenders the impression that other lenders have considered you worthy of a loan, just like rejected credit applications will lower your chances of getting one.
- Pay bills on time
Regardless if you have an electricity bill or a loan, make sure you don’t delay their payment. Borrowers get good credit points if they manage to respect deadlines and thus increase their chances for a bigger loan in the future.
- Hire a credit repair company
If you’re out of ideas on how to repair your credit and get a loan approved, it’s time to consult with credit repair service. They will tell you if there’s a chance to improve your credit score or not.
The most common loans you’ll be able to get after bankruptcy are low credit limit cards, joint account credit cards or a low-income credit card. Remember to take things slow and apply for a loan only if you really need. Lenders don’t take bankruptcy problems lightly, so your chances are low.
I hope these tips helped you get back on track and offered some points on how to repair your credit!