Are Bankruptcy Personal Loans Possible?
This is more complicated than a yes or no answer – though the answer is yes. Bankruptcy personal loans are possible but they won’t be easy to get and you may be limited to the same type of bad credit personal loan that other borrowers are able to find. There are many factors which contribute to having bad credit, and a bankruptcy is just one type of event that can lower your credit score.
Why Are You Considering Bankruptcy Personal Loans?
The answer to this question could sway your lender considerably. Here’s why: If you are seeking bankruptcy personal loans because you’ve hit another bump in the road following your bankruptcy, then virtually all lenders are going to be extremely wary. You already have a pattern of not handling your debt and now you have the appearance of falling back into that same pattern. If, however, you are looking for a personal loan following bankruptcy as a way to buttress your credit situation, then you may have a better chance. You will only get loans with high interest rates, but a lender could view you as someone trying to turn around a difficult situation. And, depending on how long it’s been since the bankruptcy, there are rules against filing a second bankruptcy too soon.
Try Contacting Lenders Online for Bankruptcy Personal Loans
You can certainly get in touch with lenders no matter the reason you need the loan. But you will find it difficult for most lenders to grant bankruptcy personal loans because you have the profile of someone running into the worst kind of financial trouble for a second time. However, lenders will see your credit report and will be able to distinguish if you are in financial trouble or if you are trying to establish credit. If it’s the latter, you just may be able to convince a lender to give you a loan – though you will also need to determine if the high interest rate involved is worth the effort to improve your credit. Perhaps getting a secured credit card is a better way to start.
No Credit Check Bankruptcy Personal Loans
But if the motivation is strictly for money because of a financial emergency, there are a couple of alternatives that should work – though they are risky and the interest cost will be high – even for borrowers with bankruptcies on their records.
- Title loans. These usually don’t involve a credit check because the loan is secured by the valued of a piece of property – often a vehicle. The interest rate will still be high, but the lender is protected because if you default, you turn over the title to the property.
- Payday loans. These also don’t rely on a look at your credit history. Instead, the lender is protected by your employment and the paychecks you are regularly receiving. Make sure the loan is absolutely necessary, because payday loans involve exceptionally high interest and allow only a short time for repayment. These bankruptcy personal loans are often no more than $1,500 and are only given out if you can prove regular employment and have a checking account. You have a pay period to pay back the loan plus interest, or more interest is added to the loan and you have until the next pay period to at least pay that interest off. Always check with the Better Business Bureau before pursuing any title loan or payday loan.