The Options for a Bankruptcy Loan
Having such a risky history certainly limits things for you, but there are still options for a bankruptcy loan. In fact, if you're careful and plan things well, you can use it as part of a plan to build up your credit history to make things easier on yourself in the future. Unless you've already done some credit building at this point things will definitely not be easy—there is no easy route here—and it's important that you understand that before moving forward. If you're expecting things to be easy, things will be much harder on you than are necessary. If you understand that this is an uphill battle, it will be easier for you to handle rejection and just move onto the next option. The key in success in this process is going to be accepting that you will be turned down some times, doing your research, and just moving onto the next option without letting it get you down. Do not just accept anything that will approve your application-there are scams out there. Be smart.
With all of that in mind, the first option for a bankruptcy loan is going to be using collateral. While things are never going to be easy as I explained above, by using collateral you're going to make things a lot easier than they would be otherwise. A lender decides who to approve, and who to offer what interest rates to, based on how much of a risk they represent. If you have a risky looking credit history, they decide there is a big risk that you won't make your monthly payments. With this in mind they are less likely to approve your application, and if they do they will be offering you very high interest rates. By offering up collateral that they will repossess if you fail to make your payments you are giving them a way to recover their losses if you don't repay your after bankruptcy loan, which lowers the risk they are taking by lending to you. This makes finding approval a lot easier for you. You can use real estate for collateral pretty much anywhere but if that doesn't work for you a lot of lenders will also work with vehicles, and while it's less common you can find ones that will work with other things like jewelry.
Now, you can get unsecured financing, but this is harder to do, especially if your discharge was recent. The more time that has passed, and most importantly, the more credit building you've done, the easier this will be. If you aren't in a time crunch and you have the funds to buy a CD, getting a CD secured bankruptcy loan and paying that off for about a year will greatly improve your credit and make getting unsecured financing a much easier task in the future.
Improving your credit is first about repair, and then about rebuilding. Since you've already discharged your debts you don't have much to do in way of repair, so it's all about rebuilding for you. Any type of financing you do manage to get, make sure that you have a budget and can handle making those monthly payments. Making those payments on time each month is the best thing you can do for your credit right now to make things a lot easier on yourself in the coming years.