There are a number of financial services who assist debtors in refinancing after bankruptcy. Generally, this service is provided by sub-prime lenders who charge higher interest rates. In order to receive these services an applicant must prepare himself financially for the lending.
Lenders base their decision on an applicants credit rating, however, bankruptcy hurts an individual’s credit record making it harder to receive lending services. Luckily, there are solutions that may help an applicant to modify their credit in order to refinance.
The bankrupt individual cannot receive financial loans for two years after declaring bankruptcy. In this time an applicant can enhance their credit by paying bills on time.
There are a number of banks and other financial institutions that offer accounts that can be used to repair credit. Secured credit cards can also help. Transactions done through these cards are reported to the credit bureaus and thus the credit records are repaired. An applicant can also work more hours to help them save money.
After two years, when loans may be received, the applicant can look for lenders specializing in refinancing after bankruptcy.This information can be found on the Internet. Fees and other charges for these services may vary so an individual should compare these.
Last Updated on : 10th July 2013