There can be no doubt that being declared bankrupt is not seen as a good thing by lenders, even if the bankruptcy term has ended. There is a certain stigma associated with the status, with the fact that debts were most likely wiped out unpaid ensuring lenders are reluctant to approve such applicants. But some lenders do offer post-bankruptcy personal loans.
It does seem strange that any lender would be willing to accept the degree of risk associated with such bad credit borrowers. But granting approval with poor credit histories is not a rare thing anymore, and as long as the key factors are in good order, then bankruptcy need not prevent an applicant from getting the green light.
As with any personal loan, the ability to meet repayments is the number one concern, and once that is satisfactorily confirmed, there is very little preventing a lender from approving the application. But what is needed to convince lenders to part with their money?
Proving Loan Affordability
Affordability is the most significant factor when seeking loan approval, but it can only be proven through the use of the debt-to-income ratio. Read more…