Payday Loans for Bankrupts
While it may be hard to acquire a loan as a current bankrupt, anything is possible with online lending. There are quite a few loan providers who are more than willing to work with bankrupt borrowers who meet their eligibility criteria.
Note, however, that bankruptcy no broker payday loans tend to come with considerably high fees and rates. Also, some lenders require the attachment of an asset as a form of security, while others may need a guarantor to share the risk of repayment.
That said, if you’re looking to acquire a loan as a bankrupt or as someone who has recently been discharged from bankruptcy, this post is for you.
What Are the Different Types of Bankrupt Loans?
There are different types of loans that you can apply for if you have bankruptcy listed on your credit report, namely payday loans no bank verification, personal overdrafts, personal loans, business loans, and car loans from lenders with high acceptance rate.
Payday loans, which we’ll be focusing on in this post, are short-term loans ranging up to $2,000, with repayment terms from 16 days to 12 months. There are lenders who offer medium and large no broker payday loan with reasonable repayment terms. Such loans often come with considerably high fees, though.
No employment verification no credit payday loan are the ones ranging up to $5,000, whereas large loans range up to $10,000. Both medium and large loans may come with collateral, meaning you need to give up an asset as a form of security. Alternatively, they may require a guarantor.
How Do Bankrupt Loans Get Approved?
The approval criteria with bankrupt loans vary from one lender to another. Below are some of the factors that are taken into consideration:
- Employment. Some lenders require regular and ongoing employment from borrowers in order to consider their bankrupt loan applications. Some lenders reject the applications of those who are self-employed or part-time employees. It’s important to check the lender’s criteria with regard to employment before applying for a loan.
- Income. Most lenders, if not all, have minimum income requirements that must be met if you were to qualify for a bankrupt loan or any loan, really. Some lenders only accept borrowers who receive their whole income from employment, while others may accept borrowers receiving an income that consists of employment and Centrelink payments.
- Centrelink. Just because you receive Centrelink benefits doesn’t mean you won’t be considered for a bankrupt loan. However, some lenders have restrictions when it comes to the percentage that your Centrelink payments represent with respect to your total income. Generally, most lenders don’t accept borrowers who receive more than 50% of their income from Centrelink benefits.
- Assets. Like we mentioned earlier, some lenders require borrowers to secure an asset in order to be granted a loan, especially with medium and large loans.
- Guarantor. If you apply for a medium or large loan and the lender isn’t asking to secure an asset, they’ll most likely ask you to apply with a guarantor. Having a guarantor helps increase your chances of being approved significantly.
Which Lenders Offer Bankrupt Loans?
Not all lenders offer bankrupt weekend loans. You’d expect big-name loan providers like Nimble and Credit24 to provide this service, but they don’t. Here’s a list of some of the loan providers that offer bankrupt loans in Australia:
- Cash Train. As long as you meet the minimum income requirements, you can apply for a bankrupt loan with Cash Train.
- Cash Converters. Cash Converters will accept your loan request as long as you’re not tied to a Part 9 debt agreement.
- Rapid Finance. This lender offers bankrupt loans, but applications are assessed on a case-by-case basis.
- Fair Go Finance. To be considered for a bankrupt loan with Fair Go Finance, you need to have entered into bankruptcy 12 months or longer from the date of your application.
- Ferratum. To be considered for a bankrupt loan with Ferratum, the prior 12 months must be free of any bankruptcy declarations.
- ClearLoans. This lender only offers loans to those who have been discharged from bankruptcy.
- Swoosh Finance. Swoosh is one of the best bankrupt loan providers, as they consider applicants who are currently bankrupt as well as those in a Part 9 agreement.
- Wallet Wizard. Your loan application with Wallet Wizard will only be considered if you’re discharged from bankruptcy.
Granted, acquiring a payday loan direct lender while you’re bankrupt, tied to a Part 9 debt agreement or recently released from bankruptcy can be challenging, but anything is possible with online lending. You just need to resort to the right lender.
Before applying for a bankrupt loan, however, you must bear in mind that these payday loans online no credit check instant approval no faxing come with very high charges and may require asset security or a guarantor.