How To Qualify For A Loan In Toronto After A Bankruptcy?

If you have filed for bankruptcy in Toronto you may already be wondering how you are going to start rebuilding your credit. The challenge is that after a bankruptcy you will have to find a company who is willing to give you a second chance to prove yourself.

The first thing you should do is to think about other components within your financial profile that would be attractive to a lender. You will want to emphasize these points in your credit application. There are 5 things that most lenders look for when considering an applicant for credit. These are character, capital, collateral, consideration and credit.

If you have good job stability, income and some assets, you are a better candidate for credit. So what are the most popular forms of credit that someone who has filed for bankruptcy could qualify for? A secured credit card, a small personal loan from a finance company or a secured loan against a vehicle are some options if you need to rebuild your credit.

Do a lot of research and shop around. Don’t confuse payday loans as a credit product that will rebuild your credit. Payday loans do not report to the credit report. Neither do pre-paid master cards.

If you have filed for bankruptcy, the faster you begin re-building your credit the better. There are some loan companies who will start helping you re-establish your credit as soon as the day after you have filed for bankruptcy.

For more information about rebuilding your credit in Toronto after filing for bankruptcy please visit www.prudentcreditrepair.ca or call today at (416) 634-2018.

Prudent Financial Services is the leader in loans to people with bad credit histories in the GTA since 1984.

Advantages and Disadvantages of Bankruptcy

Life often brings circumstances beyond our control which force us into a financial corner and no matter how hard you try, it just never gets easier. If you’re unable to pay your bills when they are due and you’ve tried everything possible to get back on your feet, it may be time to consider bankruptcy.

What does Bankruptcy mean?
Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. This means that you have legally declared yourself or your business unable to pay any outstanding debts.

What would be the disadvantages to filing for Bankruptcy?

The biggest disadvantage of bankruptcy is your credit rating. Since bankruptcy will have a negative impact on your credit rating, it will be harder for you to borrow money. Although most people who file for bankruptcy have a bad credit rating anyway, your credit history will basically reset itself to zero once complete. You’ll also need to keep record of all income and expenses while you remain bankrupt.

What are the advantages to filing for Bankruptcy?

Bankruptcy is the least costly way to deal with your debts. It can sometimes be completed in as little as 9 months. Usually the impact on your credit rating can’t get worse than it was prior to the bankruptcy. Bankruptcy protects you from collection action, legal action and wage garnishments. With financial hardship the stress of all debt can have a big impact on your life and with bankruptcy, the stress will be reduced and you will feel immediate financial relief because you know that your debts are being resolved.

Bankruptcy is intended to provide a person with a fresh financial start. Prudent Financial Services is the leader in loans to people with bad credit histories across the GTA and regions and repairing credit is Prudent Financial Services most serious commitment to its customers.

For more information, please visit our website at www.prudentcreditrepair.ca