We bet you are already having a hard time due to the bankruptcy declaration. Now, you need some cash you cannot afford and would love a loan.
However, you have heard so many reports about how it’s hard to get one due to your bankruptcy. Even more, you are thinking can you get a loan.
Well, lucky you. You can get a loan during this challenging period. Typically, your bankruptcy spans three years, after which you get discharged. Then, it stays for another two years in your credit file. Then, you are good to go.
So, while it can be quite tricky, here’s how to get a loan even after bankruptcy.
1. Staying Employed
For every loan you get, your lender wants to know that you can repay the loan. And even when you are bankrupt, showing that you have the means to repay will most likely convince a lender to help you.
And that’s why this is important. You need to stay employed and show that you have a salary. And that you can always use this salary to pay off the loan.
However, if you are self-employed, ensure you do proper research. And confirm that the institution offers loans to self-employed individuals. This is because some institutions do not.
2. Other Income Sources
Apart from being employed, having other sources of income is a good idea. It is even better where you are employed and still have different income sources.
It is simple. You are more likely to meet the minimum income level that you need to get a loan. And, of course, your lender has more confidence in your ability to repay the loan.
3. Assets or Security
This is very important if you are requesting a high loan sum. Regardless, you will still need it for smaller loans.
Having an asset that you can use as security will instil some confidence in your lender. This way, they can be sure you will not default. And more likely to loan you the money you need.
4. Good Conduct
Even after your bankruptcy, one crucial thing is your conduct. And we mean financial conduct. You need to show that you are a low-risk borrower regardless of your bankruptcy.
You will do this by ensuring that you pay all your bills as at when due. You will also need to ensure that you discharge all your financial and repayment obligation when due.
This way, a lender has some confidence in you to pay back the loan.
5. Avoid Repeated Loan Applications
You do not want to apply for every loan you see. Then, get a rejection. You will only scar your credit file.
Then, when you apply for the next loan, your potential lender will see this. In turn, they will be reluctant to offer you a loan. After all, if X didn’t, why should they.
So, ensure you do proper research and don’t keep destroying your credit file.
Getting bankrupt is not the end of the world. You can still get a personal loan within Australia.
All you will need to do is do so research and follow our guide here.