Bankruptcy can provide a clean slate for people facing insurmountable consumer debt. However, it can significantly impact your credit score and make it more challenging to secure loans for several years after filing. Here’s how to increase the chances of being approved. 

How to Apply for Loans After Bankruptcy 

1. Check Your Credit Report 

Your credit score can be a significant factor in the loan approval process. Carefully review the report before applying. Most people who declare bankruptcy already have a lower-than-average credit score when they do so, and it is not possible to clear a bankruptcy from the report right away.

However, you can improve your score in other ways. After filing bankruptcy, ensure all related accounts are zeroed out and have been reported as discharged. If your credit report doesn’t accurately reflect discharges or repayments, contact the credit bureau to correct the errors before applying for a loan. 

2. Start Small 

You may need to start with small loans to rebuild your credit. Some lenders provide loans specifically for people with low credit.

The balance may not be much, but you’re more likely to get approved. By making payments on time for these small loans, you can improve your credit score.

3. Use Credit Cards Wisely 

You can also apply for credit cards. Using them wisely can improve your credit score and increase the chances of being approved for loans in the future. Use them for small purchases and immediately pay off the balance to avoid interest.

If you need a loan, turn to Coastal Finance Company in Savannah, GA. This business provides a variety of financial solutions, whether you need emergency cash or an installment loan. Call (912) 303-9979 to speak with a friendly staff member about your options, or visit their website to learn more about their services.