Getting loans after bankruptcy can be difficult. Your finances are still recovering and many lenders see you as a higher credit risk due to your financial history. While it can be more difficult to get connected to vehicle loans after bankruptcy, it is possible.5
At Max Cash® Title Loans, we make it easy to connect with car title loan lenders, even after bankruptcy! 2 5 If you are in the market for a title loan, we are the best place to start if you are working on your credit! Keep reading to learn about our team, bankruptcy loans, and how to find funding after bankruptcy.
The Common Types of Bankruptcy
Before looking into loan options post-bankruptcy, it may be helpful to learn more about the different kinds of bankruptcies and how they can impact your finances.
Chapter 7 Bankruptcy
Most people who file for Chapter 7 bankruptcy, will not have much extra income. In many cases, these individuals do not have to ability to repay their debts (even partially). Instead of repayment with this type of bankruptcy–any assets that you have will be liquidated. Things like your home, personal belongings of value (cars, jewelry, etc.), and your retirement accounts will be liquidated to pay off your creditors.
When it comes to Chapter 7 bankruptcy, you will not be responsible for unsecured debt, such as credit cards. Secured debt is another issue because the loan is secured by the collateral. Chapter 7 remains on your credit reports for up to 10 years.
Chapter 13 Bankruptcy
This type of bankruptcy is for those who have income and can make partial payments over time.
Unlike Chapter 7 Bankruptcy, none of your assets are sold when you file. With a Chapter 13 bankruptcy, the applicant will have to abide by a court-approved repayment plan for your debts. Your repayment period can range in length depending on your income and total debt.
With a Chapter 13 filing, you must continue to make payments on your unsecured debts during your court-approved repayment plan. Chapter 13 remains on your credit reports for up to 7 years.
How Can You Get a Personal Loan After Bankruptcy?
Whether you file for Chapter 13 or Chapter 7, filing for bankruptcy will stay on your credit report for several years. That mark on your credit report will make it considerably more difficult to get approved for a loan. When you submit a loan application, lenders will consider factors like your income, credit score, and credit history. That’s why it’s tough to get a personal loan after bankruptcy. Personal loans are typically unsecured, so the debt poses a greater risk if you default on your loan because there is no collateral to repossess.
That being said, it is possible to get an unsecured or secured loan after bankruptcy if you work with the right lender. It may be easier to apply for a secured loan because using collateral typically lowers your credit risk, so a lender may be more willing to work with you.
How Long Will A Bankruptcy Impact My Credit Score?
If you already had late payments/ outstanding payments, or overall bad credit, before a bankruptcy filing, your credit scores (from all three major credit bureaus) may not fall much more once you apply for bankruptcy protection.
But typically, there will be a negative impact on your credit scores. As time goes by, however, the impact of bankruptcy on your scores will decline.
During this period, you can also begin to rebuild your credit by making on-time payments to improve your payment history. You may also want to work on your savings account for a fresh start.
How Will Past Bankruptcy Impact My Ability to Get Loans?
Having a past bankruptcy on your credit report can make eligibility difficult for some conventional loan types. In general, personal loans, credit cards, car loans, mortgage loans/home loans, and other unsecured lending may not be an option without good credit. However, depending on the lender of the unsecured loan type you may be eligible with a co-signer or a higher interest rate.
However, there are secured loans out there that you may be able to qualify for if you have a lower credit score:5
- Car Title Loans — Car title loans are secured with the borrower’s qualifying vehicle. Eligibility and loan amount will be based on your ability to repay the loan, and the value of your car, not your credit score or credit history. Keep in mind that most lenders will conduct a credit check to check whether you are in active bankruptcy. The loan amount can range from a few hundred up to a few thousand dollars.
- Payday Loans — Payday loans are generally short-term loans, that are meant for smaller expenses (they usually are only up to a few hundred dollars). Although these loans can be fast and easy to qualify for, their short-term repayment and fees attached can make them tricky to get back.
- Secured Personal Loans— In some cases, securing a loan with an asset such as jewelry/antiques, etc. can also be an option for post-bankruptcy borrowers.
- Secured Credit Cards— There are credit cards that are essentially credit builder loans, with down payment and on-time monthly payments. But, you may be given a small credit limit.
With loans after bankruptcy, you can establish a new credit history, which could really help moving forward.
How Long After Bankruptcy Can I Get a Car Loan?
Now that it’s in the past, you might be wondering – how long after bankruptcy can I get a car loan? The answer is that it depends. It may take years to rebuild your credit history and be in the right shape to get a car loan. Depending on the lender you work with, you may encounter tough underwriting and loan requirements, so you may need to wait the full 7 years before you can be approved for a loan.
As mentioned above, secured loans like title loans or HELOCs can be possible if you are able to hold onto your assets during the bankruptcy process.
Title loans are vehicle-secured loans that allow you to borrow against the available equity in your car.
If you’ve experienced bankruptcy in the past, you can still apply for a car title loan and access a portion of your vehicle’s equity if you qualify!1 5
Why Work with Max Cash Title Loans After Bankruptcy?
At Max Cash Title Loans, we are the #1 nationwide online title loan marketplace. We make it easy to fill out a loan application and connect with title loan lenders all across the nation. Here are some benefits of working with our team and the lenders that we work with: 2 5
- Low monthly payments4
- Competitive interest rates4
- No hidden fees3
- Flexible repayment4
- A fast process
- Exceptional customer service
What Will the Application Process Look Like with Max Cash Title Loans After Bankruptcy?
The application process with our team is simple, and involves a few simple steps:
1) Apply online or through the phone
2) Find out eligibility with a lender
3) Find out approval
4) Once approved, get the funds1 2
If you are ready to begin the title loan process. simply head to our website and apply or give us a call right away! No matter what your credit score looks like, or you have gone through bankruptcy we may be able to help connect you with a loan.5