When you are passing though bankruptcy, you will have a few thoughts about loans while in bankruptcy. After all, you are losing everything including all the credit cards you have not paid until the bankruptcy filing date.  If you are thinking about such a loan – the good news is that it’s possible. However, this is a tricky situation and needs to be applied very carefully.  The loans while in bankruptcy are meant to help you through a bad financial situation. Usually these loans have many clauses attached to them and therefore, you need to be careful about what you do when you apply for, and after you get, the loan.  Contact a good and reputable credit repair agency or professional to give you the best possible advice on loans while in bankruptcy, before you even consider it. This is very important, lest you sabotage your few benefits that accrue from filing for bankruptcy.

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Here are two excellent ways that will help you wrestle the best terms out of the situation:

1. Find a co-signee – use the recommendation and co-signature of a person who has a very sound credit report. Beware though, that any discrepancy with your repayment schedule will reflect upon his or her credit as well. So, accept help with responsibility!

2. Offer collateral – when you offer collateral that equals or exceeds whatever loan you wish to avail, the terms and conditions will become far more favorable than when you apply solely depending on your credit score.  In such a case the creditor will not find you a high risk investment any more, since the collateral guarantees the recovery of the loan.

Despite the drawbacks of using credit, using it has become commonplace ever since the 1920s. Right now, it is estimated that 40% of all U.S. households now carry a credit card balance every month as opposed to just 6% in 1970. Aside from credit card, student loans also seemed to have become a problem. Around two-thirds of college graduates today carry a student debt load as opposed to 50% about a decade ago.

But because of the financial meltdown, lenders are becoming stricter about their requirements. For 2009, they are enforcing strict loan approval that requires borrowers to have low debt ratios and high credit scores. Below are just some of the things you can expect if you want to apply for a loan:

Mortgage – in order to get the best rates, lenders require you to have a minimum credit score of 740. It is still possible to get a mortgage with a lower credit rating but you’ll be charged higher interest. In addition, lenders also look into the debt ratio.

Home Equity Loans – to get approval for home equity loans, it is important for you to have a credit score of between 650 and 680 to get the best rates. Some lenders even make a credit score of 720 their minimum requirement.

Car Loans – if you intend to buy or lease a car this year, a credit score of 700+ is needed to do the trick. Of course, getting a loan with a lower score is also possible but you might need to deal with a slightly higher interest rate depending on your credit standing.

Credit Cards – because of the financial crisis, credit card issuers have raised their standard for good credit this year. And even if you do get a credit card approved, it will be a good idea to keep your balance under 30% of the credit limit.

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