Discharged bankruptcy loans

Chthonic on 30/10/2018 - 18:04

Hi all,

I’m discharged from bankruptcy mid Jan 2019 and am wanting to rebuild my credit rating. I have about $30,000 in savings and want to get a personal loan of about $10-$15k on a variable rate simply to help my credit score. I have a family member that’s willing to co-sign if need be.

I’m just wondering if anyone has any experience in this or has any recommendations on particular banks/credit unions as I’m worried I’ll be flat out rejected for having previously been bankrupt.

Any advice will help!

Thanks
Chthonic

Financial

Comments

  • Donaldhump on 30/10/2018 - 18:10
    +2

    i think you would find it tough.

    why not just get a 1 grand credit card.

    well done for your savings

  • [Deactivated] on 30/10/2018 - 18:21
    +2

    I have about $30,000

    Can that be used to repay back some of your old debts?

    • Donaldhump on 30/10/2018 - 18:38

      doesn't need to they were discharged.

    • Chthonic on 30/10/2018 - 19:41
      +3

      The debt was about $150k for a mortgage that was foreclosed due to my ex refusing to cooperate and sell the place. I just gave up and when the bank sold it they sold it quickly for a massive loss.

      So no, I don’t have any intention on paying the bank that amount. I was about 24 when this happened and declared bankruptcy shortly afterwards on the advice of my lawyer.

      • Randxyz123 on 30/10/2018 - 22:43
        +1

        Speak with a banker or financial advisor on what the best thing to do is.

  • watwatwat on 30/10/2018 - 18:22
    +9

    Hahahahahahha celebrate your end of bankruptcy with a big personal loan. You sound like an intelligent person.

    Now, please link to at least one reputable source showing that acquiring credit in Australia will boost your credit score. Smart guy like you must have many links from lots of stuff you've read on this topic.

    • Donaldhump on 30/10/2018 - 18:39
      -1

      paying back a loan will increase your credit score. does with credit cards now anyway

      • watwatwat on 30/10/2018 - 18:58
        -1

        Citation needed.

        • Donaldhump on 31/10/2018 - 12:08

          well my credit score on savvy has gone through the roof since june paying, as now on the credit file it stores dull payments.

      • HighAndDry on 30/10/2018 - 19:29
        +4

        Maybe, marginally, depending on the circumstances. But so will paying utilities and phone bills on time, paying off a much lower limit credit card on time, not applying for that loan in the first place, etc. Oh - that last one? Doubly true if OP stands a high chance of being denied that loan.

        Taking out a personal loan for the sole purpose of improving your credit score is idiotic.

    • Chthonic on 30/10/2018 - 19:46

      I earn nearly $100k a year now (was only in about $60k when I declared). I don’t have any other debts and about $30k in the bank. It wouldn’t take very long to pay the personal loan of about $10-$15k back and I don’t care if it results in paying some interest. I’m purely just wanting to do what I can to help increase the credit score so in the future it won’t be impossible to take out a mortgage under just my name.

      The idea on a low/no fee credit card might be a better option.

  • HighAndDry on 30/10/2018 - 19:25
    +6

    and want to get a personal loan of about $10-$15k on a variable rate simply to help my credit score.

    This is a terrible idea.

    Source: Not an undischarged bankrupt.

    Edit: Okay - somewhat more productively, take out a low-limit, no-fee credit card and pay that off every month. Have utilities and phone bills (post paid) in your name and pay those off every month. Go rent a place (within your means) and pay rent on time. Lots of ways to rebuild credit without paying interest on a personal loan for no reason.

  • chumlee on 30/10/2018 - 19:57
    +2

    Taking out a personal loan may have no positive impact on your credit score

    If it's an unsecured loan you may even be declined as many don't take undischarged bankrupts and your credit score will drop

  • Justme1234 on 30/10/2018 - 20:11

    It’s your call re what you do, but there are plenty of reputable websites that should help you, like Credit Smart. It might be an idea to check your credit score and credit file, Equifax, Experian and illion all have different options, paid and free. Even then, they will only be indicative as all lenders use their own proprietary scoring models.

    Did you know that some types of bankruptcies are purged off credit files after 3 years? But if you defaulted on other loans that weren’t a part of your bankruptcy estate they may well still be recorded on your file. Unfortunately some lawyers re just in it for the pay day and they don’t necessarily give their clients the best advice.

    Finally, I think ithe obsession will building up credit scores is fascinating!!! Australia is not the US, credit scores are not that developed as there isn’t as much data in the system and the laws here are completely different. The big four are currently only contributing RHI and CCLI on credit cards, it will be a while yet before they contribute mortgage and personal loan data.

    Please do your own research and good luck!

  • TheBilly on 30/10/2018 - 20:17
    +2

    Why do you need a credit card? I have never had one and I had no issues getting my first home loan? literally the only credit I had before this was mobile phone plans. Unless it will serve a functional purpose of providing you a line of credit in emergencies (you have $30k savings) - I dont see how anyone will say, "Im glad you have a credit card, I think its a great idea to give you more credit on this basis".

    Edit: I didnt read it properly… you want a personal loan and not a credit card. However logic still aplies, why not just use your cash?

  • tsunamisurfer on 30/10/2018 - 20:29
    +2

    want to get a personal loan of about $10-$15k on a variable rate simply to help my credit score

    Do I have this right?

    You are borrowing $15k @ 13% simply to improve credit score?

  • burningrage on 30/10/2018 - 22:28

    I think you shouldn't do it.

    Just paying off rent, utilities, etc should do.

    With your income, you don't need it.

  • cheapisgood on 31/10/2018 - 01:25

    WHy not just get a $1,000 Credt Card limit instead, use it a few times and pay it back in full every month? You would be silly to pay interest on a personal loan.

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