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.
Refinancing means taking out another loan to pay off your existing personal loan. Refinancing only makes sense if the loan can help you to save money by offering a lower APR interest rate. Some people refinance a loan to extend the repayment period because they need more time to pay the loan. The following are a few steps that you can take when you want to refinance a personal loan.
1. Review Your Credit Report
The first step is to review your credit report for any error. The creditor will always check your credit report when deciding what level of interest rate to give you. The credit score shows whether you are a borrower that always make on time payment. Many free tools are available online for checking credit score. You can also order a free credit report from the credit bureau.
2. Compare Loans with Online Comparison Tool
You can use the online comparison tool to compare the loan rates from different lenders. The tool will ask you to enter information such as requested loan amount, and postcode. It is important to go through all the lending terms of each personal loan in the search result including interest rates, maximum loan term and loan period, availability in your states, upfront fees and other fees. If you are interested in a loan, go to the loan product page at the official lender site to check for more details. You can call the representative at the hotline number to confirm the details of the loan you saw at the loan comparison site.
3. Sign Up with a Lender that Offers Soft Inquiry
Many lenders at the online comparison site offer soft credit check that will not impact your credit score. The purpose of soft credit check is to let the borrower know the estimated interest rates. Getting a soft inquiry is important because the APR interest shown on the online comparison tool is not accurate. After submitting the initial application, you can expect to receive a loan decision within the same day or next business day.
4. Check with the Old Lender
After your new loan gets approved, make sure that the old loan gets paid off. If the loan gets paid off, the old lender will send you a notification about it. You can also check the credit report for a record that shows that it is paid off. Now, your duty is to commit yourself into paying off the new loan you applied for refinancing the old loan.
In conclusion, refinancing a loan works for people who have achieved a higher credit score than before and qualify for a loan with lower interest rate. If you choose the right loan, it may be able to help you save thousands of dollars in interest rates and you will be able to get rid of your debt faster.