Many entrepreneurs have hit financial snags on their way to success. But in the current financial landscape, modern business builders in Connecticut may wonder if business loans are obtainable for those with a history of personal bankruptcy. Luckily, lenders often have options for people with a less-than-ideal credit history.
The first thing would-be business owners should look at when applying for a loan is their credit score. Minimum credit score requirements can vary a great deal, depending on the lender. Some accept credit scores as low as the 500s, while others require up to a 700 minimum.
It is also a good idea to look into ways to improve one’s credit score. While personal bankruptcy can be a hit to a score, there are ways to improve things over time. Recommended tools include credit builder loans and secured credit cards. It is important to note that it may be very difficult to get a business loan while undergoing a bankruptcy, since the courts will be actively discharging debt. However, once the process is complete, there are certainly options.
Over time, bankruptcy will have less of an impact on a person’s credit score. While people may find high-interest lenders willing to take a chance on them during bankruptcy, taking out any kind of loan while going through the bankruptcy process may jeopardize a case. For this reason, any additional loan should be discussed with a Connecticut personal bankruptcy attorney to ensure it will not interfere with current proceedings and that it will ultimately benefit the recipient long-term.