Hello World! Welcome Friends!
Declaring Bankruptcy Can Lower Your Credit Score
Sliding into the debt cycle can happen much quicker than many people realize. If you’re not careful, taking on too much credit and not paying it off can hurt your finances in the long run. Sometimes, declaring bankruptcy may be the only option for some people to consolidate their debt. Whether you file chapter 7 or 13, this option may provide you with some financial relief.
However, declaring bankruptcy can leave a large stain on your credit history. Although you may not be able to apply for traditional loans in the near future, title loans are still available! That’s because title loans are secured options, which means they use physical collateral in exchange for funding.
Applying for unsecured loans after declaring bankruptcy could be very challenging. Although title loan lenders run a credit check, your credit score is less important than your car’s equity and whether you have a regular income.
Keep reading to learn more about how to apply for title loans after declaring bankruptcy! You can also start your inquiry by filling out the pre-approval form or calling to speak with a title loan agent.
What Does Declaring Bankruptcy Mean?
An individual who has accumulated too much debt can file for bankruptcy to get a fresh start. Creditors regain some level of repayment in the form of liquidation through assets. These proceedings are handled within the federal court and allow the debtor to obtain some financial relief from their initial obligations.
While this option can help many people struggling with debt, filing for bankruptcy can lower their credit scores. A low credit score can make it more challenging to apply for loans, housing, or jobs in the future.
What Are the Requirements for a Title Loan After Bankruptcy?
Title loans can be accessible to people from a wide variety of financial backgrounds because of how simple the requirements are! It can be challenging for many Americans to obtain a bank loan if they recently declared bankruptcy or have a low credit score.
While the requirements for a title loan can be straightforward, it’s still crucial that you can meet them before applying for funding. For a car title loan, you must have the following:
- Be an Adult at Least 18 Years of Age or Older
- Possess a Vehicle Title in Your Name
- Have a Qualifying Vehicle With Some Positive Equity
- Show Proof of Consistent Income
You can’t apply for a title loan after declaring bankruptcy without being an adult 18 years or older. You can prove your age and identity by using a valid government-issued photo I.D., like a passport or driver’s license.
You can apply for a title loan after declaring bankruptcy if you have a qualifying vehicle title in your name. This loan option depends on using the car title as collateral for funding, so the agreement would not work without one. If you need to replace a car title, contact the DMV in your state for more information.
A person’s positive equity in their vehicle is more important to title loan lenders than their credit history. Car equity is the difference between your vehicle’s value and how much you owe for it. Qualified borrowers may receive anywhere between 25-50% of the available car equity as a loan, but this amount can vary depending on your circumstances.
Finally, it’s a federal requirement that title loan lenders check a person’s income before approving them for funding. This law is in place to prevent predatory lending practices, like loaning money to someone who can’t repay the amount. You don’t have to work a traditional 9-5 position to be eligible for this loan– as long as you have consistent income, you can apply!
Consistent income means having regular money coming in from an outside source. Below are examples of the steady income that you can use during a title loan inquiry:
- Worker’s Compensation
- Social Security Benefits
- Alimony/Child Support Payments
- Settlement Income
- Some Self-Employment
Contact a title loan agent if you have questions regarding your circumstances around vehicle titles or income verification!
Apply for Online Title Loans After a Bankruptcy Today
Filing for bankruptcy can offer financial relief to struggling people. If you have a bad credit history due to past bankruptcy, you can use your car as collateral for funding! Inquire about online title loans today by visiting the ChoiceCash title loan website!
Click the links below for any posts you have missed:
You Love Animals? Here’s How You Can Build a Great Farm
8 Things to Do if You Want to Storm-Proof Your Roof
7 Tips for Hanging Art Around Your Home
10 Must-Have Kitchen Supplies at Home
3 Title Underwriting Issues and How to Avoid Them
Mid-Winter Home Maintenance: Taking Care of Your Exterior
I’d love for you to join my email list! You’ll receive a notification straight to your inbox which will include links to my latest home project posts! Simply enter your address below.
Thanks for stopping by! Have a wonderful day/night depending on where you are in the world! Go with God and remember to be kind to one another!
Toodles,
[…] Can I Get a Title Loan After Bankruptcy? […]