After a person has gone through bankruptcy, there is a tendency to believe that they will never be able to get another loan. This couldn’t be further from the truth. While it is true that individuals won’t be able to receive a loan with great terms and a low interest rate right away, it is possible to get a loan. The best loans for people that have recently gone through bankruptcy are secured loans and pay day advances. Both of these loans are very easy to get and lenders don’t care much about their borrower’s credit history. This works in favor of those whose credit has taken a hit on account of bankruptcy. They are able to get the money they need, in spite of it.
Many people are unaware of the fact that although a bankruptcy stays on a person’s credit history for some time, many lenders will offer traditional loans to people a few years after they have filed and completed the process. This is partly because, once a person has filed for bankruptcy, their debt is cleared, which makes them a good candidate for a loan. If a person has yet to take out a loan, they won’t have any debt, which increases the likelihood that they will be able to pay back what they owe.
The fact that secured loans and pay day loans are easy to obtain is good news for those who’ve gone through a bankruptcy. That and the fact that a person’s history is not held against them, make both loans attractive options. However, it is important to note that these types of loans don’t come cheap. Individuals will need to understand that they will be charged a significant amount of money in interest. Also, failing to pay back a secured loan will result in the loss of whatever property or asset was used as collateral.