Can You Apply for a Personal Loan If You’ve Declared Bankruptcy in the Past?

Bankruptcy is a very difficult situation for an individual to handle any kind of borrowing in the future. Bankruptcy actually means that the individual has been bankrupted and there is no property left and everything has been seized under several conditions. Such a situation makes an individual completely vulnerable to getting any kind of loan. The bankruptcy scars always stay for more than seven years on the credit report, which restricts the individual from getting a new instant personal loan online. Therefore, it is very important that you do a personal loan apply when the scars are removed from your credit report, or else you will only get a rejection. Rejections are very common for individuals with bankruptcy in their past credit history. You cannot apply for a personal loan if you have been declared bankrupt in the past and the scars are still there on your credit report. You need to wait till the scars have been removed, which is usually done within seven years, and then it will start again with a good credit profile. If you have been declared bankrupt in the past, there is nothing that you can do.

You need to wait and be patient

It is very important for you that you give time to your credit profile in the best way possible by being patient. If you have been declared bankrupt, you need to give your credit profile the required number of years to remove the scars forever. Having bankruptcy on your credit profile and credit report will never allow you to get any kind of loan. There is no financial stability and credit health of an individual that has been bankrupted in the past years, which does not allow the loan provider to offer any kind of loan or line of credit to the individual. The only best way is to wait and be patient so that your credit report is able to delete the bankruptcy scars within a few years, which is more than seven years. You need to wait and make sure that the scars of bankruptcy are removed. Do not keep applying for multiple loan applications with a bankruptcy scar on your credit report, as that is not going to help you get any kind of loan. Rather, by applying for multiple lines of credit, you are actually damaging your credit score more.

Improve your credit score

This is one of the best times when you can work on your credit score development. You can improve your credit score over time with the best credit activities that can help you in the credit building process. This is the best time when you can use all the good credit activities that can help in increasing your score instantly. It takes a lot of time, but with the right credit activities, you are able to get a good credit score, which makes you eligible for easy borrowing. You need to score above 750 and it will come with only good credit activities. Make sure you are able to make your payments on time, whether you are paying for your credit card bills or anything else. Every single payment will be registered in your credit report and it will be taken into consideration that it will impact your credit score hugely. Other credit activities that do not keep any outstanding are keeping credit accounts open and managing a credit mix in a balanced way by keeping the credit utilisation ratio low.

Wrapping up

Clix Capital offers a personal loan apply process for an instant personal loan online. Make sure you compare the personal loan interest rates and get the best deal in the market.

Financial Analyst at a leading lending firm in India with 15+ years of experienced in providing advice on instant personal loans and home loans in India.