Can I Apply for Payday Loans After Bankruptcy?
Filing for bankruptcy is one of the hardest decisions that any person will ever have to make. Bankruptcy has wide ranging implications for your finances and well-being. Nevertheless, it is often an unavoidable, or even necessary measure. However, even though it can help a person work through difficult financial circumstances, it does make it difficult to access credit. That said, bankruptcy is not the end of the road, and you can still be accepted for payday loans after declaring bankruptcy. In fact most payday loan companies will not even check your credit or look for a recent bankruptcy when the underwrite your lending application!
What a Bankruptcy Means for Your Credit
Credit, simply out, is a reflection of the trust that a financial institution has in your ability to repay a loan. The degree of confidence they have in your ability is measured by your credit score and the interest rate that you have to pay. Your credit history is a history of the financial decisions that a lender needs to know to judge whether you are a fit person to loan money to. An event like bankruptcy tells lenders that there is a big chance that you may not repay your loans. This does not mean that you should not choose to file for bankruptcy, whether that is under chapter 7 or chapter 13. What it does say is that bankruptcy is a huge decision.
Bankruptcies are Not Forever
In the long run, a bankruptcy is eventually scrubbed off from your credit report. You will not be punished forever for having declared bankruptcy. Under a chapter 7 bankruptcy, a bankruptcy will remain on your credit report for 10 years, whereas under a chapter 13 bankruptcy, a bankruptcy is scrubbed off your credit report after seven years, assuming you have completed your payment plan.
Lending Options After Bankruptcy
Given that a bankruptcy is not a permanent part of your credit report, you will be able to gain approval for a personal loan at some point in the future. The further away you are from discharging your debts, the higher the chances you have for getting approved for a cash advance or payday loan after bankruptcy. You will even find same day financing offers for people with low credit scores.
If you are seeking a personal loan, you should shop around for lenders who offer loans to people with low credit scores. For example, you can access title loans in WI from GoTitleLend. Title loans are loans that are often granted without taking your personal credit history or score into consideration. Instead, a title loan lender will seek collateral from you to act as security for the amount they lend out. Typically, people will give their vehicle titles to the lender for the duration of the loan. The loans are typically short-term. If you manage to repay the loan, you will regain your title. Title loans are your best option in the years prior to your bankruptcy being erased from your credit report, and in the years after when you still have a low credit rating. Because of their nature, a failure to repay a title loan will not impact your credit report.
You should also try and prequalify for loans with different lenders, so that you can check out which lender is offering the lowest interest rate. Then, you simply pick the one with the lowest interest rate. You should also factor in any other fees; and the overall terms of each loan, to assess the true cost of the loan.
