If you have filed a bankruptcy, getting the 2nd mortgages or home equity loans is a good idea. Beside that, you should have to be aware of any possible disadvantages of the bad credit loans, as bankruptcy makes your credit scores fall deeply.
The bad thing is that many financial experts discourage bankruptcies. If you have field Chapter 7 or Chapter 13 bankruptcy, you may be charged with high interest rate. But you can get the better rateif you have fully known and understood the basics.
It is a common thing that you will be hard to get any loan if you just have filed for bankruptcy. Even if you are succeeded on getting any loans, you will have to pay high interest rate that will automatically increase your monthly payments. However, getting new credit accounts after bankruptcy is a good way to rebuild your credit score. But it is not easy to be approved for new credit accounts. There is another choice. It is the 2nd mortgage loan.
2nd mortgage loan can be a good choice if you want to rebuild your credit score. But you should not expect too much to get the best rates. It is not a secret that the interest rates of 2nd mortgages are higher than the first one. You can avoid paying large monthly payments by not borrowing large amount of money. It is not hard to be approved for a 2nd mortgage loan. The loan is secured by your property, which is usually your home. So that, if you fail to pay the loan off, your property or your home will be confiscated.
Besides borrowing money, you can pay the lender with that money. By doing like this, you can greatly improve your credit score. You can also avoid the risk of not being able to pay the loan off.
You can apply for 2nd mortgage loan with your first mortgage loan provider. But it is not a good option. Why? Because if you get your first mortgage with goof credit status, your application for 2ndmortgage loan after bankruptcy may not be approved by the lender. But you can contact some sub prime lenders that will approve your application for all credit types. You can even get approved after you face bankruptcy, foreclosure, repossession, etc.
Moreover, sub prime lenders usually provide loan with better rates that the traditional mortgage lenders do. You can find the best 2nd mortgage by going online and go to the online mortgage brokers. They offer you various loan options. Then, you will be able to choose the best one that meets your financial needs.