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.