Filing for bankruptcy is one thing that can really taint your credit report and this will greatly affect you when looking for credit financing. This is because many lenders will see you as a potential risk where any amount offered can be easily lost as a result of defaulting their loans. However, some lenders have gone ahead to offer unsecured personal loan bankruptcy where the applicant does not even need to pledge collateral to get the funds.
An unsecured personal loan bankruptcy is characterized by:
No collateral- the person applying for this loan is not required to pledge collateral on the amount to be loaned out which means that you will qualify for the loans even if you don't own any valuable asset. This leaves any lender who offers this loan in a risky situation as there is no asset that can be used to recover the amount that was given out if the borrower fails to make full repayments for the loan. This is why the loan is given under very strict terms.
Available with low credit scores- filing for bankruptcy really lowers the credit scores of the individual involved but an unsecured personal loan bankruptcy is open even to people with such. Most lenders who give out this loan will only make sure that you are in position to make repayments for the amount offered and the funds will be given out. However, the fact that no collateral is offered and the loan is available to people who had earlier filed for bankruptcy has some disadvantages like:
High interest rate- an unsecured personal loan bankruptcy is given at a very high interest rate as a way of limiting the applicants to people who really need the funds. The applicant should therefore be very careful when signing the loan documents because one can easily experience financial constraints due to the resulting high cost of borrowing.
How to get better terms on the loan
You can get better terms on an unsecured personal loan bankruptcy by comparing various quotes from a number of lenders who offer these funds. You can then choose a lender whose quotes reflects better terms and lower interest rates. One should always ensure that the same lender chosen has a good reputation as this will allow the applicant a very smooth loan period.
An unsecured personal loan bankruptcy is characterized by:
No collateral- the person applying for this loan is not required to pledge collateral on the amount to be loaned out which means that you will qualify for the loans even if you don't own any valuable asset. This leaves any lender who offers this loan in a risky situation as there is no asset that can be used to recover the amount that was given out if the borrower fails to make full repayments for the loan. This is why the loan is given under very strict terms.
Available with low credit scores- filing for bankruptcy really lowers the credit scores of the individual involved but an unsecured personal loan bankruptcy is open even to people with such. Most lenders who give out this loan will only make sure that you are in position to make repayments for the amount offered and the funds will be given out. However, the fact that no collateral is offered and the loan is available to people who had earlier filed for bankruptcy has some disadvantages like:
- Only as small amount is allowed
- The loan is given under very strict terms & conditions
- The repayment period is very small
High interest rate- an unsecured personal loan bankruptcy is given at a very high interest rate as a way of limiting the applicants to people who really need the funds. The applicant should therefore be very careful when signing the loan documents because one can easily experience financial constraints due to the resulting high cost of borrowing.
How to get better terms on the loan
You can get better terms on an unsecured personal loan bankruptcy by comparing various quotes from a number of lenders who offer these funds. You can then choose a lender whose quotes reflects better terms and lower interest rates. One should always ensure that the same lender chosen has a good reputation as this will allow the applicant a very smooth loan period.
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