If you’ve filed for bankruptcy in California, but need a personal loan, it can be a challenge to find a bank that will lend you money or give you a credit card. However, having a bankruptcy on your credit report doesn’t mean that it’s impossible to secure a personal loan. You still have a couple options available to obtain a loan even with bad credit.

Secured Loans

If you have savings in the bank, you can apply for a secured loan. The bank will place a hold on the money in your account for the amount that you want to borrow just in case you’re unable to pay the loan.

There are some banks who will give you an unsecured loan, but the downside is that you will most likely have to pay high interest rates. Sometimes the bank will ask for a co-signer with good credit who will be willing to take on responsibility of the loan if you can’t make payments.


Payday Loans

Another option to obtain a personal loan after filing bankruptcy is to apply for a payday loan, otherwise known as a “cash advance”. You can get these type of loans at some check cashing places, a store that specializes in payday loans, or you can easily apply for one online.

Generally, all that is required to receive California payday loans is that you have an active bank account and be employed. This short-term loan can help if you’re in a bind and just need a little cash to cover expenses until your next payday. In the state of California the most that you can borrow is $300.

With a payday loan it’s highly recommended that you only borrow what you need. If you borrow too much, you could short yourself when payday rolls around and get caught in a cycle of borrowing money. Remember that you do have to pay back the loan in full plus any fees, which are typically high.

As you can see, getting a personal loan after filing bankruptcy isn’t all that hard. Once you get your credit back in shape, you should have enough practice of borrowing money responsibly.  Then you can go back to applying for regular loans with lower interest rates.

Photo Credit:  Anthony Easton