Filing for chapter 7 stays on your credit report for up to 1 -years. You’re being declined for credit because lenders use a process, known as credit scoring, to determine your creditworthiness. You can get a loan after bankruptcy discharge, but the rate of interest will be considerably higher.

Borrowing money costs more because you are classified as a high risk customer. However, specialist bankruptcy lenders have emerged offering secured bad credit loans and unsecured cash advances to non-status customers who’ve been refused credit elsewhere.

Secured Homeowner Loans when Declined for Credit Elsewhere

If you’re a homeowner and have sufficient equity, subject to affordability, you may be able to get a secured homeowner loan. Despite the fact that many bankruptcy loan lenders have “temporarily” stopped lending to new customers, there are still companies who are prepared to help you.

Unlike in recent years, you’ll be expected to demonstrate that the monthly repayments on your loan after bankruptcy discharge are affordable to you. Your history of bad credit means that the cost of borrowing is going to be higher, but this isn’t an insurmountable obstacle to getting approval.

Where Can I Get a Loan After Bankruptcy Based on the Equity in My Car?

If you’ve paid off at least 75% of the outstanding finance on your vehicle, you may be able to get a bad credit auto title loan. Take your automobile to a specialist bad credit lender and they’ll offer you the chance to borrow money against an expert internal valuation or the blue book figure.

Just over half of all U.S. states allow you to get a loan after bankruptcy for the next 30 days. You may even be able to renew the agreement, provided that you have sufficient equity. Keep in mind that failing to repay the money you’ve borrowed will result in the repossession and sale of your vehicle.

Unsecured Loan After Bankruptcy from a Payday Lender

Regardless of how bad your credit is, you may still be able to get a loan after bankruptcy discharge from a payday lender. Subject to being in full-time employment, you can borrow up to $1,000. If you’re on state benefits, you can still get a quick cash advance for up to $500.

As is the case with vehicle title loans, there are no credit checks and you can use the money for any purpose. There aren’t the same consequences of default because your cash advance is unsecured, but non-payment will lead to your account being passed to a debt collection agency.

Pawnbrokers are Guaranteed Bankruptcy Lenders

When you’ve got collateral, such as gold or silver, you can get a cash advance loan against the equity. Your item will be professionally assessed and you’ll then be able to agree upon an amount. You’ll normally pay $25 for each $100 that you borrow for that month.

It’s inadvisable to use sentimental items to secure your quick cash advance. This is because, if you default, the pawnbroker is quite within its rights to sell the collateral to recover its money. There are no further consequences of defaulting on a cash loan after a bankruptcy discharge.

Adverse credit makes it a lot harder to borrow money, but getting quick cash loans isn’t an insurmountable obstacle. Specialist lenders offer guaranteed loans for bad credit to those who the banks are no longer prepared to lend money to. No credit check loans are more expensive because the risk of default is far higher when lending blind. This means that borrowing money is only suitable for a short term financial emergency. The only method suitable for borrowing money over the medium term is a secured homeowner loan. The provision of collateral allows the lender to offer a lower rate of interest.

Guaranteed Loans for Bad Credit

It is possible to get a quick cash advance with no credit checks from a payday lender, pawnbroker or a credit union. It is normally possible to get approval within a maximum period of 24 hours. The cost of borrowing $100 for a month is about $20 to $25. Whilst some consumers turn to a loan shark, this is not recommended as they do not operate within the confines of the law. Also, think carefully before borrowing money when out of work as interest accrues quickly.

Pawnbroker Loans – No Credit Checks

Pawn shops provide guaranteed loans for bad credit based on the provision of collateral. The customer provides an item of value (gold, silver, jewellery, electrical equipment) and the value will be assessed and a maximum lending limit determined. It is the borrower’s responsibility to pay back a pawnshop loan (the principal and accrued interest) at the end of the borrowing term. Failure to redeem the item will lead to the collateral being sold in order to recover any money that was lent.

Quick Cash Loans Until Payday

A payday lender offers poor credit loans for up to $1,000. In order to receive approval, the applicant must be a U.S. citizen, at least 18-years old, in full-time employment, have a checking account and be able to provide a minimum of 2 forms of identification. Provided that the borrower is able to meet the above criteria, a bad credit payday loan is guaranteed. The lender needs a postdated check from the borrower that will cover the full amount borrowed plus any interest. Provided that the application is received before 2.30 PM, the money will reach the borrower’s checking account on the same day.

Loans with no Credit Checks from a Credit Union

People join a credit union on the basis of a shared interest (locality, vocation, religion etc). Credit unions are non profit organisations that operate purely for the interests of their members. Just like payday lenders, they also offer guaranteed loans for bad credit on similar terms. The main difference is that a credit union will work with the member to ensure that they are in a position to repay the debt without creating further financial hardship. They will also be more sympathetic in the event of money problems.

Pros and Cons of Poor Credit Loans

A guaranteed loan for bad credit provides are an effective way of borrowing money for an emergency when that person doesn’t have anywhere else to turn. However, the rate of interest is high which means that a quick cash advance will leave less money to pay the bills in future months. It is very easy to get trapped into a cycle of dependency so avoid borrowing money with poor credit unless it is absolutely essential.

Choosing the right credit card can vary on who will be using it. While one card might be right for one person, it could be a bad idea for another. Many factors can affect what type of credit card will be the perfect fit. While some might offer a great reward program, it’s APR might be a little too high.

Interest and fees. While credit cards are wonderful to have, they also have their downside. The downside comes in the form of interest. Whatever a cardholder has spent must be paid for. If it is not paid for soon enough they will have to pay penalties and fees. That is why the lower the credit card’s APR (Annual Percentage Rate) the better. Some credit cards have various fees on top of the normal amount of interest that has been applied to purchases. To avoid finding out after the fact, it is critical that the fine print has been read before using the card.

Looking for rewards. Credit card reward programs must also be considered when choosing a credit card. This can be anything from airline miles to an autographed basketball. Each credit card company will offer some similar rewards but also will have some different choices. Before someone decides to become a cardholder with a certain company, they must make sure that it will be worth their while. Some credit cards might give more points depending on where the cardholder uses it. So while the incentives are the same, the amount of points that can be received will vary. To get points quicker the cardholder should seek a credit card that offers more points at the typical locations that they use it. Many credit card companies offer multiple credit cards to choose from.

Sign-on bonus. On top of credit card rewards, many credit card companies will offer sign-on bonuses. These bonuses will change periodically. It is not unheard of for a first time cardholder to receive If a $100 just by making their first purchase. Credit card companies do this so the they can make sure that the credit card will be used. If the cardholder starts using it frequently, and falls behind on payments, the credit card company has a chance to make a good amount of profit from the interest. The higher the interest rate on the card, the more money they will receive. So while sign-on bonuses can be tempting, they can also be fatal to the pocketbook.

I grew up in a middle class family in Colorado. We never wanted for anything, but we never had a lot of money, either. Both of my parents have their college degrees, as do all four grandparents, so it was a foregone conclusion that I, too, would go to college when I graduated from high school. I took the AP classes, graduated in the top 5% of my class, scored well on the SAT and ACT, and thought that I was ready for college.

I have always known what I wanted to do when I grew up. Unfortunately, only a handful of colleges offered my major, so I selected the one that was closest to home. Tuition was far from cheap, but it was not the most expensive option, either. I talked to financial aid, I got a few small scholarships, but the counselor encouraged me to take out private student loans as well as government loans. She gave me the literature, and I selected a large national bank with seemingly good rates, and took out my first loan, thinking I could get more scholarships the next year.

My sophomore year rolled around, and I applied for over 200 scholarships. I did not get a single one, even though I had a 4.0 GPA. I kept hearing excuses like “your parents make too much money” or “we prefer to give this scholarship to (fill in ethnicity here) students” or “this scholarship is not for people in your major.” My parents were not giving me any money for college, I was surviving on what I could make on my own. I was working 40 hours a week on top of going to school, trying to get tuition and expenses paid, and I was getting burned out. But I wanted my degree, so I took out more loans.

My junior year came, and went, without receiving any more scholarships. I stopped applying for any that said “based on financial need” or “preference given to (fill in ethnicity here) students.” I still had a 3.8 GPA, and great recommendations from my professors, but that did not seem to make any difference. I took out more loans.

My senior year, I had enough credits to graduate after first semester, so I was able to pay tuition with only government loans. By the time I graduated, I had accumulated over $50,000 in private and government loans. Because jobs in my major generally do not pay well initially, I took the best paying job I could find, and work in my major part time. For my area, I make decent money, but not enough to make my student loan payments. When I called to consolidate them after my six month grace period, suddenly my 7% interest rate became 11.5%, and shortened my pay back time from twenty years to twelve, even though my credit was good. The payments were more than I was earning a month, but the response from the bank was “you consolidated the loans, you have to make the payments.” Even if I did not want to live inside and eat, I had no way of making that much money. I pay what I can, and every month I fight with the bank, telling them I still do not make that much money, and they tell me I still have to make the payments. If they lowered my interest rate, or gave me more time to pay the loans off, I would be able to make the whole payment, but they have been extremely unwilling to work with me. However, I have learned some valuable lessons.

First, community college is not just for those who cannot make it at a four year college. Had I gotten my associates degree from a community college first, and then gone on to a four year college, I would have had fewer loans, and, therefore, lower loan payments. My high school guidance counselor really pushed four year colleges, and did not even make community college an option for me. I wish I had known better.

Second, the government does not really want middle class white America to go to college. I know I am not the only one whose parents could not afford to send them to college, but who had the drive to go. Since I did not have the foresight to be born (fill in ethnicity here), I should have been doing drugs or getting pregnant in high school rather than taking AP classes, because both of those open up many more scholarships than scoring well on the AP exam.

Third, the financial aid advisor at the college is not the person to see about getting scholarships. I am not convinced that she was there to help me. She really pushed private loans through this bank, and she must be getting a kickback somewhere. When I was young and naïve, she pushed for private loans, and I believed that they were my only option. Now I know better. I should have been talking to people who had graduated from my major, and found out how they paid for college. I also should have double majored in something that would have opened up more scholarships.

Fourth, do not believe the myth that you can get enough scholarships to cover your education. My high school guidance counselor told me stories about kids who had gotten more than enough money to pay for their education and graduated debt free. These are the same stories that the publishing companies tell to get you to buy their big magic scholarship book. The odds of you getting a big national scholarship are slim, you are better off getting a part time job and earning that money rather than investing your time and resources into the scholarship application. Your best bet for scholarships is going to be through your community or the college, and most of those are going to be small amounts. Be prepared to make up the difference.

Fifth, get experience. I wish I had found a job relating to my major while I was still in school, rather than taking first job that came along. Experience counts for a lot, in some ways experience counts for more than my education. I am currently getting the experience I need to be successful in my field, but if I had done this while in college, I would be ahead of where I am now.

Finally, network. I cannot stress this enough. Meet everyone in your field you can, whether they are already successful or up and coming. You never know who will be willing to finance your education or give you a job after you graduate. More importantly, do not burn your bridges. Be professional and polite with everyone, because you never know when you are going to need your old contacts.

Along the way, I have made some mistakes. I cringe every month when the bill for my student loans comes, knowing I do not have the money to pay it. Occasionally I wish I had done things differently, but then I remember how much I value my education, and how the experiences I have had have made me the person that I am. I encourage everyone who wants a college education to get one, but beware, because not everyone wants to help you succeed, some are simply thinking of their own wallets.

How College Grads Can Get Sucker-Punched with Double Jeopardy

Education is, without a doubt, one of the most highly-sought-after goals for most individuals nearing the completion of their high school careers throughout America. From a very young age, it is driven into us that we need to get a post-secondary education if we want to survive in the world of tomorrow. In most instances, I would be inclined to agree.

But that education, of course, has a price.

Robert Borosage with the Campaign for America’s Future (co-director) was recently on The Young Turks, an online progressive news/commentary program which is primarily featured on XM satellite radio. During an interview with the host, Cenk Uyger, Mr. Borosage brought up an interesting point that at first seems like it should be completely ludicrous, and should not under any circumstances be allowed. But it isn’t quite so strange, because it turns out he’s absolutely right.

When a college student receives loans for their education, there are not only the budgetary concerns, the academic concerns, and the social concerns waiting for them upon their arrival on campus, but in the future, when they’ve either graduated or failed to on their own merits, they must start repaying those loans. The loans are insured for the banks by the government, so that if a student should default, the money is guaranteed to the lender. The student must still pay their own loan off as well, however, meaning that the banks can double-dip for the same singular loan.

It gets worse, if that can be believed. No longer can filing for bankruptcy save the prospective graduate from the depths of the kind of debt that will be heaped on them. Even after declaring that you can’t possibly pay off these debts, the loan institution is still allowed to come after the student for the loans, even though they’ve been paid off on the account by the government, and the student has themselves admitted that they just can’t do it. The interest alone can in many cases be crippling, and this matters not one whit to the banks/lenders. They want only to protect their own bottom line.

Some of these very same lenders were up the creek, as it were, until the bailouts came along to save their hides. So long as they can fleece you, they will. If you’re a student, it’s just that much easier to do it. But what can one reasonably expect to do in order to get that post-secondary education if they don’t take out those loans? Strike out on your own as a small businessman? Get a regular low-income job that doesn’t require the degree? Maybe two or three of those jobs to survive?

In the long run, the options for the average American looking to get that sought-after education aren’t very many, or very attractive.