You’ve filed chapter 7 and your credit score has dropped, but you can still get a loan after bankruptcy discharge. There’s a variety of post-bankruptcy loans available, but lower interest financing requires a credit score improvement. If you’re looking for a fast cash advance to help you make it through to month end, that isn’t a problem as you should be able to meet the eligibility criteria. In order to get approval for low rate unsecured loans after bankruptcy, you’ll need to fix your credit score before applying.
Where to Get a Loan After Bankruptcy Discharge
If you’ve recently been discharged from chapter 7, you’ll find that borrowing money is expensive. This is because your credit score is still at an all-time low so you fall into the highest risk category of borrower. If you want to get approval for a low interest post-bankruptcy loan, you’ll want to make payments on existing credit agreements before making any new applications. Most people find that getting credit after bankruptcy is achievable, but it may take a while before you start to qualify for the best deals.
Unsecured, Short-term Post-bankruptcy Loans
- Payday cash advance: If you have a full-time job and your own checking account, you may be able to borrow up to $1000 from a payday lender without providing any security.
- Credit unions: If you are a bit strapped for cash, credit unions offer unsecured loans after bankruptcy. They’re non-profit organization, but you’ll need to be a member.
- Family loans: If you want to get a loan after bankruptcy, but want to avoid paying a usury rate of interest, borrowing money from a close friend or family member could be ideal.
Getting a Loan After Bankruptcy Discharge with Collateral
- Pawnbrokers: If you are able to offer security, such as gold or jewellery, you can get a loan after bankruptcy. Your quick cash advance is secured against the collateral.
- Auto title loans: If you’ve cleared at least 75% of all outstanding car finance, you may be able get a post-bankruptcy loan secured against the equity in your car. A bad credit car title loan is useful when you need a larger guaranteed cash advance, but they aren’t available in all U.S. states.
Bad Credit Score Mortgages, Car Loans & Getting Credit After Bankruptcy
You may be surprised to discover how quickly you can get a loan after bankruptcy. Despite the fact that chapter 7 causes a substantial credit score reduction, there are still lenders who are prepared to help you. Getting a loan after bankruptcy is always far easier if you provide a larger deposit and can demonstrate that the repayment schedule is affordable to you.
Chapter 7 and post-bankruptcy mortgage loans are more expensive to begin with, but you can refinance to get a lower rate of interest in the future. The more timely repayments you make and the longer the gap between the date that you filed and today’s date, the better the deals you are likely to be offered. This is because you’ve had the opportunity to re-establish your creditworthiness.