How to Get a Secured Personal Loan After Bankruptcy

By Michael Cantrell

  • Overview

    It can be difficult to get approved for a personal loan after filing for bankruptcy. That does not mean it is impossible to be approved for this type of loan, but it will require you to be a lot less picky in negotiating terms and will require you to put a lot of effort into doing some research into banks and other loan options before you find the right one. Do not get discouraged if one bank or lender turns you down; keep on trying.
    How to Get a Secured Personal Loan After Bankruptcy
    • Step 1

      Contact several different credit reporting agencies and get your credit reports from each one. The reason you will need to check with multiple credit reporting agencies is because there will be a difference in your score among the different companies, and having several different reports can help your potential lender verify your true credit score. Most lenders will either require you to have these before you come in, or will obtain them for you at the possibility of a cost to you for getting your reports. You can go to FreeCreditReport or AnnualCreditReport to get your reports (see Resources).
    • Step 2

      Visit your bank. Either call ahead and make an appointment, or walk into the bank and ask to speak to the bank's loan officer. At this point you are not in much of a position to be negotiating due to your bankruptcy, so you may have to take a loan that has terms that may be a bit steep. Make sure your bank is well aware of your current standing as bankrupt.


    • Step 3

      Visit a few other banks and lenders to get a broad picture of what your options are. Weigh out the pros and cons of each loan and its terms and decide whether or not any of these loans are for you. Some banks may approve you easily for a loan, but the loan may have a very high interest rate, which would not benefit you in the long run. Some lenders may require a high monthly payment to pay back the loan, but have low interest rates.
    • Step 4

      Take out a personal payday loan. If you need a loan fast for an emergency, visit a payday lender and get a small, temporary loan to tide you over until you can get a bigger loan.
    • Skill: Moderately Easy

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