If you have previously dealt with a tough financial situation and filed for bankruptcy, you may wonder if you could get loans now or in the future.
Getting loans after bankruptcy is tricky, but not impossible! Learn more about the process below and how a ChoiceCash Title Loan could be a great option to consider when you need fast emergency cash.
Types of Bankruptcy
If you’re interested in getting loans after bankruptcy, it is a good idea to understand how bankruptcy affects your credit and loan eligibility.
There are two main types of bankruptcy people could file:
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Chapter 7 Bankruptcy
Also called liquidation, this type of bankruptcy is used when a person cannot afford to make payments of any kind on their debt. This option may involve having your assets sold in order to cover the cost of loans.
Chapter 13 Bankruptcy
This bankruptcy option is great for people that want to keep their assets but just need a little financial help. Also called an adjustment plan, this type of bankruptcy filing allows people to repay a smaller portion of their debt within three to five years.
How Bankruptcy Affects Your Credit and Loan Eligibility
Wondering about loans after bankruptcy? Filing for bankruptcy can greatly hurt your credit, by as much as 200 points! The exact amount your credit will lower depends on your unique financial situation. If your credit was great before filing for bankruptcy, your credit may simply be fair now. Having bad credit can greatly affect the loan options available to you.
If you need loans after bankruptcy to handle any bills or expenses, know that you cannot inquire for certain types of loans for a minimum of two to four years if you filed for Chapter 7 bankruptcy. If you filed for Chapter 13 bankruptcy, the amount of time you have to wait for loans is dependent on your court case.
Chapter 13 bankruptcy is not as serious as Chapter 7, so you may not have to wait as long to get financial support from loans. You may only have to wait 2 years from the discharge date and 4 years from the dismissal date. If you aren’t sure when you can inquire for loans after bankruptcy, contact your attorney.
How to Improve Credit After Bankruptcy?
If you want to work on your credit after bankruptcy in order to get loans with affordable terms, you need to understand how credit is calculated.
A FICO score is calculated through the summation of five financial categories, which are:
- Payment History: 35%
- Amount Owed: 30%
- Credit History: 15%
- Credit Mix: 10%
- New Credit: 10%
Your payment history is the most influential category when it comes to credit. If you want to improve your finances in the future, make sure you pay your bills on time. To help, you could sign up for automatic payments. Instead of manually paying bills online, the monthly amount can just be withdrawn automatically from a bank account.
Your credit ratio is the second most influential category for credit. If you owe more money than you have available to borrower, your credit to debt ratio is off and could negatively affect your credit. Asking for a credit increase from your credit card issuer could possibly help improve your credit ratio.
Can I Get Car Title Loans After Bankruptcy?
If you want loans after bankruptcy, know that ChoiceCash Title Loans are an option to consider! ChoiceCash Title Loans offer flexible qualification requirements, so even with past bankruptcy and bad credit, you could still potentially be deemed eligible!1
As long as you are not currently going through bankruptcy proceedings, and meet the following requirements, you could possibly be deemed eligible for a ChoiceCash Title Loan1:
- Are at least 18 years old
- Have a qualifying car with a car title in your name
- Can show proof of reliable income
Car title loans are designed to help individuals in need of fast emergency cash–no matter their past financial discrepancies. As long as your car has enough positive equity, you could potentially get money in as little as 24 hours after approval!1
Your car has positive equity when the current resale value is worth more than the amount you owe on it. For example, if your car is worth $8,000 but the principal amount of your auto loan is $3,000, then the total equity in your car is $5,000!
To find out if you could get loans after bankruptcy, use the simple online title loan calculator! To get an accurate estimate, you will need to know your car year, make, model, style, and current mileage. If your car is worth enough money, you could be pre-approved for a title loan and get a free estimate!
If I Get Loans After Bankruptcy How Can I Stay On Top of Payments?
After bankruptcy, a lot of people seek ways to improve their finances. If you get a loan, one of the best things you can do is learn how to budget.
There is not a single best way to budget your finances, as there are countless types of budget plans for various types of situation. To get started, you could download and print some free budget spreadsheets or calendars.
Or if you prefer to use an app, know that there are numerous good options, such as:
- Personal Capital
- Pocket Smith
To get started on budgeting your money after bankruptcy, you will need to keep track of three key things: your income, your monthly bills, and savings.
If you don’t have a savings account yet, consider your options. There are plenty of high interest savings accounts for you to choose from, which allow you to make money simply by having money! When choosing a bank to work with, ask about the interest rates and the terms and conditions.
Some banks require a minimum amount, which means you cannot open a savings account unless you have that money ready to deposit. And other bank options may only let you withdraw money from your savings account once or twice a month. This can be a problem if you experience a financial emergency and need to withdraw money from your savings account.
One of the best budgeting methods is the 50/30/20 rule. This rule stipulates that 50% of your budget should go towards your necessary expenses, such as your rent, groceries, phone, and utilities. About 30% should go toward any unnecessary expenses, such as take out, entertainment, clothes, etc. And finally, you should put aside at least 20% of your monthly income into your savings account.
The great thing about this budget plan is that it can be easily altered to fit your lifestyle. If you don’t spend much on yourself, you could lower your unnecessary expenses to 20% and use that extra money toward growing your savings. Or if you need more money for necessary expenses, you can lower your savings budget to 10%. The choice is yours!
How to Inquire for Car Title Loans After Bankruptcy?
If you want to get loans after bankruptcy, you could inquire with ChoiceCash Title Loans!Car title loan options typically offer high approval rates and fast emergency cash. But with ChoiceCash Title Loans, you could get unmatched benefits that allow you to keep more money in your pocket each month!1
Traditional title loans keep the same monthly payment amount throughout the repayment process, but payments and rates with ChoiceCash Title Loans could get lower every single month!2 By paying your car title loan on time, you could pay less each month that goes by! Think about how much money you could save in the long run just for being a diligent borrower!
There are no hidden fees with ChoiceCash Title Loans, as well as no balloon payments or prepayment penalty fees. You could repay your car title loan as early as you want in order to save a little more on interest!
And if you happen to need more emergency cash while you are in the middle of repaying a loan, you could inquire for funding at your current low rate!2 ChoiceCash Title Loans are designed to make borrowing money affordable for the masses. Just because you filed for bankruptcy in the past dos not mean that you can’t become financially independent in the future!
The approval process with ChoiceCash Title Loans is simple and straightforward. There are only 3 simple steps to follow. Take a look at how the process generally unfolds:
- Inquire: To get started on the approval process, you can call (855) 914-2945 to speak with a car title loan agent or go online and complete the car title loan inquiry form.
- Paperwork: If you are preapproved for loans after bankruptcy, you could start uploading your required documents online!
- Approval: Once your paperwork is received, a car title loan agent will verify your information. After everything checks out, you could be fully approved for a ChoiceCash Title Loan and receive your money!
Need a loan after bankruptcy? Inquire for a ChoiceCash Title Loan to potentially get affordable terms and financial rewards!