Many people think that once you file for bankruptcy that you financial outlook in life has been ruined and your chance of obtaining a personal loan of any kind is ruined. The good news is that this is not always the truth. There are lenders who will be willing to lend to you and there will be four different areas that will be examined when trying to obtain a personal loan. This article will help you to understand what will be examined and how to get the best loan website for your financial situation.

Your Credit Score

One of the top things that almost every lender will look at when qualifying someone for a personal loan after bankruptcy is the credit score. Every lender has their own credit score qualifications and each borrower will be required to meet the credit score criteria before being approved for the loan. It is recommended that when you are shopping around for a personal loan you ask the lender if they will loan to people who have a bankruptcy on their credit report. Some lenders will and some will not.


Another item that the lender will take into consideration is whether or not you have any collateral to pledge towards the loan. More lenders will be more apt to lend you money if there is some type of collateral that is being pledged. This will secure the loan in the case that you do not pay the monthly payments. If this happens and the loan goes into default the property that was used as collateral will then become property of the lender. The property can then be sold to help pay the loan balance.

Personal Loan After Bankruptcy

Amount Of Existing Debt

When you apply for a personal loan after bankruptcy you do not want to have too much debt already accumulated. The lender will want to be sure that you will have enough income to pay your current debts as well as the personal loan that you want to obtain. If you have too many bills to cover such as credit cards or car loans the lender may deny the loan application.

An easy way to find out if this will pertain to you is for you to ask the lender is they have a minimum income requirement or a debt to income ratio that you will need to meet. If you do not meet either of these requirements you should move onto the next lender.


If you find that you do not meet the requirements to obtain a personal loan after bankruptcy you should wait a little while longer before trying again. Time will help to heal the financial wound that you have acquired. You should keep working on cleaning up your credit report and improving your credit score. Once your credit report starts to show a positive trend in your payments and your score is rising you can try again for a personal loan. Generally it will take about two years for you to develop a positive payment history once your bankruptcy has been discharged.