Applying for a cash advance loan is a great way to help build back your credit history. You needn’t wait long to apply for a loan as it can be made immediately after the day your bankruptcy closes. However, there are a few tips to be kept in mind to get the best rates for the loans.
First and foremost, you have to review and check out your credit report to make sure that all your accounts are in order. If at all there are any open accounts found after your bankruptcy, this could very much hurt your credit rating. It would also be wise to add a page in the credit report stating the situation that led to your bankruptcy. This is because if there were any extenuating circumstance, the lenders may approve you for a better rate than otherwise. Also try to increase your credit score by having a credit card balance that doesn’t go above 50% of the available credits limit. Secondly, before applying for a loan, decide how much you can afford in a monthly cash advance loan payment. Both the loan amount and the length of payments determine your monthly payments, giving flexibility to determine which loan is suitable for you.
When applying for a loan, you are bound to be asked if you have ever declared bankruptcy and why. So grab this opportunity to explain the reason for the bankruptcy and the steps you have taken to resolve your credit situation. It is even better if you approach lenders who work with people who have had bankruptcies in the past as they would have more experience in this matter. Once the cash advance loan has been approved, concentrate on refinancing through regular payments of bills that helps you qualify for lower interest rates in your next loan as your credit score would have grown to a near excellent score and thus make you qualify for lower interest rates.