Originally posted on https://www.hockyourride.com.au/get-a-loan-while-bankrupt/
Many people believe that going bankrupt puts an end to your chances of getting any kind of loan. Is this really the case, though? Or could you still access some sort of bankruptcy loan even after suffering serious financial issues?
According to the Australian Financial Security Authority, there were close to 17,000 bankruptcies in the country in the 2017/8 period. What do you need to know if you are part of this large group of consumers who have run into a financial rough patch?
How does bankruptcy affect the lending process?
When you are declared bankrupt in Australia, you remain in this state for 3 years. Rather than seeing this a punishment, it is recommended by financial experts that you see it as a fresh start. This could be an opportunity to get your finances in order for the future.
However, the issue of getting credit is going to be one of the biggest problems in some cases. No bank will want to lend money to you at this time. What about once you are fully discharged from the bankruptcy process?
In this case, the bankruptcy will remain on your credit file for up to 7 years, while you will also be permanently listed on the National Personal Insolvency Index. Therefore, it will probably remain an extremely difficult task for you to get a loan from a traditional lender such as a bank.
Some banks may offer you a loan starting from one year after the date you are discharged from bankruptcy. Others won’t want to lend to you even after this date.
Don’t forget that bankruptcy is often the final step in a long, drawn-out period of financial distress. If you have gone through a period of economic turmoil then it could be some time before you can borrow from a bank again.
How no credit check bankruptcy loans can help?
There is a possible solution that you should be aware of. This is because no credit check loanscan work as bankruptcy loans even before you are discharged. This means that you can access credit in this way even if you were made bankrupt last week or last month.
How can this work? What is different about these loans that lets you borrow money even when you find that all of the other doors are closed to you?
The key is that these cash loans don’t take your credit history or personal situation into account at all. There is simply no requirement for them to check your credit score or ask you about your current financial situation.
Instead, they can offer you a loan purely based on you putting down a valuable item as security. This means that you are borrowing money on the strength of your collateral.
It is important to note the difference between these loans and other types of bad credit loans that are available from certain lenders. The latter are offered to people who have a poor credit history, typically at higher than average rates.
On the other hand, with a no credit check loan there is absolutely no need to even check your credit score or anything else. The option of a bad credit loan may be open to you earlier than other kinds of loan, but it usually still involves a credit check on you.
How much can you borrow on a bankruptcy loan based on your assets?
Rebuilding your finances after going bankrupt can be a long, slow task that takes years to complete. If you have been forced to start from scratch then it might seem like an uphill struggle a lot of the time. Being able to access some bankruptcy loan funds from time to time can be incredibly useful in relieving some of the strain.
How much will you be able to borrow by using your car or some other asset as security? The maximum loan amount available to you really depends upon the value of the asset that you use. The more that it is worth, the more that you can borrow against it. It really is as simple as that.
It is worth bearing in mind that some people go bankrupt twice or more. This can happen when they struggle to recover from the first bankruptcy and never quite get their finances in order after that.
If you are under a lot of pressure because of the effects of bankruptcy then you might feel that getting some breathing space is vital. A cash loan for discharged bankrupts can be of immense help in this situation.
Even if you only borrow the money for a short period of time, it can be crucial in helping you to keep an even keel from now on. In fact, you might even end up wondering whether this type of fast, easy loan might have saved you from bankruptcy in the first place.
Can you borrow in the future?
There is nothing to stop you from carrying on using no credit check cash loans for as long as you want to. Many of the people who borrow funds in this way have never been made bankrupt and could access loans in other ways if they wanted to. They just like the speed and convenience of this approach.
Of course, you may also decide to take out a bank loan in the future. This could be when you need to borrow a bigger sum to buy a house or a new car, for example. You might want to borrow more than your assets allow you to on a no credit check loan. So, you decide to opt for a more traditional loan instead.
To do this, you will need to show your bank that you have turned your situation around. This means that you should look to improve your credit history once you are discharged.
You should also look to maintain a good financial situation. With a bit of luck, the experience of going through the bankruptcy will have given you an opportunity to reflect on what went wrong in the past.
If you can show that you now have your finances firmly under control again then you should find that new doors begin to open up for you. Get in contact with Hock Your Ride for a bankruptcy loan today.