Do Signature Loan Lenders Follow the Same Guidelines as Banks for Borrowers Who Have a Previous Bankruptcy
If you have filed for a bankruptcy before, it is best to apply for the loan online than applying from a bank. This is because the bank is likely to reject your application as they perceive that you are unable to repay the loan. Online lenders like P2P lenders are more lenient and some will extend loans to those with poor credit rating or have filed bankruptcy before.
In the aP2P lending platform, the lenders are individual investors so they don’t have to follow the same guidelines as the bank. It is up to the individual investor on whether to approve the loan. The individual investor also decides what APR interest rate to charge you. The interest rate on a P2P loan is usually significantly lower than the interest rate the bank will charge on a borrower with bad credit rating.
The P2P lenders normally just want to make sure the applicant has enough income to pay back. So, if you want to get approved for an online loan, you must have already a stable job for the past 3 – 6 months. They will likely try to check your bank savings account statement to determine how much you save every month.
When you apply for the loan from an online P2P lender, you can expect the loans to be processed and approved faster than the bank. Most applicants who applied for P2P loans get the funds within a period of 1 – 2 weeks. This is significantly faster than bank loans in which they will let you wait at least 3 – 4 months before giving you a loan decision. The funds from the loan can be used for all kinds of purposes such as a wedding, college tuition fees, medical fee, vacation or large purchase.
Badcreditloans.com offers a lot of lenders that will approve borrowers with past bankruptcy record. You must keep in mind that online loans for people who have declared bankruptcy usually have higher interest rates. Therefore, you should make sure that you know what types of fees you will be charged prior to applying. After getting a loan, make sure you promptly make repayment. You can expect your credit score to be built up within a period of 12 months by doing so.
Borrowers with a bankruptcy history have two options when coming to apply for a loan including unsecured and secured loans. Even though it is not easy to find a loan with the reasonable interest rate for borrowers in post bankruptcy, it is still possible to find one by using the online loan comparison tool. If you can prepare more funds for the down payment, it will be easier to get approved for the loan since you are borrowing lesser amount.