If I declare bankruptcy in the future or if I have already declared bankruptcy, will I still be able to get a loan?
When you are applying for a loan, your success is always going to be dependent on how clean or how poor your credit rating is. If your rating is too low, then no, you will not be able to get a loan. This is because this tells a creditor that you are an incredible risk to them. It is up to them whether or not they want to take a chance on you, but most will decide against it.
If your credit rating is good enough to qualify for a loan, then yes, you can apply for a loan. There are lenders who cater to bad credit loans. It does not matter to them whether you have a history of late payments, loan defaults, or if you have declared bankruptcy.
Subprime lenders will be happy to assist you in obtaining a loan, because they will charge you a higher rate of interest. Certainly, a person who has a good credit history will not be paying as high a rate of interest as a person who has a bad credit history, but if you have had problems and need a loan, you do not have much choice.
When applying for home and car loans, putting up property for collateral that is worth more than the amount of the loan you are requesting will aid in securing a loan. This is because the lender has tangible property to recover if the loan is not repaid. However, just because you can get a loan, but you are still not in a position to be able to make the payments, do not secure a new loan if you know that you are going to default on it. You will just be making a bad situation worse and it will take you much longer to clean up your credit.
When there is collateral involved, this also means that you will lose that piece of property in order to secure the loan. If you have put a car up as collateral, you will lose that car.
So if you get a loan, be sure to make the payments either on time or a little early. Just know that you are not stuck with a low credit rating; it will require effort and patience, but you can rebuild your credit. And you will want to begin as soon as possible. Rebuilding your credit can be painful at times, but it will be well worth it.
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