Loans for Bankrupts: Personal, Payday & More

Filing for bankruptcy isn’t an easy step to take. While the process is difficult, the hardest part often comes when you’re trying to rebuild your finances, your credit score and your life. After your bankruptcy is discharged, you may find yourself in need of a post-bankruptcy loan. While it sounds difficult, there are some lenders who offer loans to clients with bankruptcies on their records.

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Finder Score	APR Range	Loan Amount	Loan Term	Broker Compliance	Key Features
Promoted Finder score 8.8 Great LoanConnect Personal Loan	Finder score 8.8 Great	8.99% - 35.00%	$500 - $60,000	3 - 120 months	Note: LoanConnect is a loan search platform with access to multiple lenders. Applicants will be matched with a suitable lender based on credit history and borrowing requirements.	Key features: Loan search platform for all credit scores	Go to site More info Compare product selection Compare	loading
Promoted Finder score 8.6 Great Loans Canada Personal Loan	Finder score 8.6 Great	8.99% - 35.00%	$500 - $50,000	4 - 60 months	Note: Loans Canada is a loan search platform. Apply once to get matched with lenders based on your credit and borrowing requirements.	Key features: Loan search platform with the largest lender network	Go to site More info Compare product selection Compare	loading
Promoted Finder score 8.5 Great Fat Cat Loans Personal Loan	Finder score 8.5 Great	6.99% - 35.99%	$300 - $50,000	3 - 84 months	Note: Fat Cat is a loan search platform. Apply once to get matched with lenders based on your credit and borrowing requirements.	Key features: Loan search platform for all credit	Go to site More info Compare product selection Compare	loading

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To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 40+ personal loans are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.

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Finder Score	Costs	Loan Amount	Loan Term	Rebate	Key Features
Finder score 8.7 Great KOHO Cover	Finder score 8.7 Great	0% + monthly fee from $2	$20 - $250	Flexible	Key features: Instant, no credit check or income required	Go to siteMore info Compare product selection Compare	loading
Finder score 8.8 Great Bree Early Pay	Finder score 8.8 Great	0%	$20 - $500	Next pay cycle	Key features: Instant e-transfers, 24/7, no credit check	Go to siteMore info Compare product selection Compare	loading
Finder score 9.3 Excellent Nyble Credit Line	Finder score 9.3 Excellent	0%	$30 - $250	31 days, extendable	Use code CFIND1J to get 500 extra points and a $5 higher approval. T&Cs apply.	Key features: Instant e-transfers, 24/7, no credit check	Go to siteMore info Compare product selection Compare	loading

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Finder Score for cash advance apps

To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 5+ cash advance apps are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.

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Cost	Loan Amount	Loan Term	Serviced Provinces	Key Features
Wagepay Wage Advance Loan	$14 per $100 borrowed	$100 - $1,500	Up to 62 days	BC, ON	Key features: 24/7 approval and e-Transfer, no credit check	Go to siteMore info Compare product selection Compare	loading
iCash Payday Loan	$14 per $100 borrowed	$100 - $1,500	7 - 62 days	AB, BC, MB, NB, NS, ON, PEI	Key features: 24/7 instant approval and e-Transfer, accepts bad credit	Go to siteMore info Compare product selection Compare	loading
Venue Financial Payday Loans	$14 per $100 borrowed	$50 - $1,500	Up to 62 days	BC	Key features: Instant loans, no credit check	More info Compare product selection Compare	loading
Cashco Financial Payday Loans	$14 per $100 borrowed	$50 - $1,500	Up to 62 days	AB, BC and SK	Key features: Instant approval, no credit check	More info Compare product selection Compare	loading

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Can you get a loan if you declared bankruptcy?

If your bankruptcy is discharged, your options may be more limited, but you do have options. Since a first bankruptcy stays on your credit report for six or seven years (and a second bankruptcy for up to 14 years), be wary of the financial products that you apply for. Should you apply and be denied, you could damage your credit score further.

Always contact a lender, be honest about your financial history, and ask if you’ll be considered before submitting an application. While a payday loan has the most lenient eligibility requirements, it also has exorbitant rates and extremely short repayment terms, so consider it only as a last resort.

What kinds of bankruptcy loans can I get?

Personal loans, cash advance apps and payday loans are viable unsecured options post-bankruptcy. You can also consider secured options like auto title loans or secured credit cards, or credit builder loans to help rebuild your credit. Learn more about each option below.

1. Bad credit personal loans

Bad credit personal loans are available from alternative lenders. While standard personal loans offer large amounts, if you’ve just been discharged from bankruptcy, lenders may only approve you for low amounts under $10,000. Be prepared for interest rates between 18% - 35% because lenders will consider you a risk due to your history of bankruptcy.

To boost your odds of finding a lender who can finance you, check out loan search platforms like Loans Canada or LoanConnect. You’ll apply once to get matched with suitable lenders.

2. Cash advance apps

Cash advance apps are fairly new in Canada. They’re small online loans of up to $500, and you won’t need to go through a credit check to get approved for one. You pay no interest on these loans, but you may pay a monthly fee.

To get approved for a cash advance, it’s best to have a recurring income paid directly into your bank account. And if you’d like to lower your cost as much as possible, check out Nyble and Bree. Both these apps offer no-fee, no-interest advances if you opt for three-day funding.

3. Payday loans

These are small loans with repayment terms usually within 62 days. Borrowing amounts are between $100 and $1,500, and the cost of borrowing is $14 for every $100 borrowed.

Only apply for a payday loan after bankruptcy as an absolute last resort because it’s an extremely expensive loan. Before you apply, make sure you’ll have enough income left to pay for other debts and expenses once you repay your loan. If you don’t have enough income left, you may be forced to take out another payday loan.

If you need help with debt or money management, learn about free credit counselling services available to you.

4. Auto title loans

It’s easier to get approved for a secured loan than an unsecured loan after bankruptcy, since the lender can recoup any potential losses by seizing the collateral that you used to back your loan.

An auto title loan is one type of secured loan, where you can use your vehicle as collateral. You can then get access to a loan for anywhere between 25% and 50% of your car’s value. Auto title loan APRs generally range between 9% and 35%. You can apply car title loan lenders like Pit Stop Loans, Fast Action Finance and Prudent Financial.

Before applying for an auto title loan, contact the lender to discuss your options and be honest about your financial past.

5. Secured credit cards

With a secured credit card, you give the lender a security deposit, which acts as collateral, and then use the card like a regular credit card up to a certain limit. The amount you deposit —usually between $200 and $10,000 — often becomes your credit limit. Because it’s secured, the lender takes on less risk, so you have a higher chance of approval even after getting discharged from bankruptcy.

Like typical credit cards, you’ll be charged interest, generally around 15% to 20%, on your purchases. If you default on payments, the lender can seize the deposit. Keep in mind that secured credit cards may come with monthly and/or annual fees.

• Example: Neo Secured Mastercard

  The Neo Secured Credit Card comes with guaranteed approval and no hard credit check. Your credit limit is based on the amount you provide upfront for a deposit, which can be as little as $50 or much as $10,000. The purchase interest rate ranges from 19.99%-29.99%. Learn more about products like the Neo Secured Mastercard.

• Example: Home Trust Secured Visa

  The Home Trust Secured Visa has a high approval rate, even or those with very poor credit or no credit history. It comes with a $0 annual fee and a 19.99% purchase interest rate, although you could get a lower 14.9% rate if you’re willing to pay a $59 annual fee. Learn more about products like the Home Trust Secured Visa.

The downside is that using a prepaid card in bankruptcy won’t improve your credit score. This is because, like a debit card, your card activity isn’t reported to the credit bureaus.

6. Credit builder loans for bankrupts

As the name suggests, a credit builder loan helps you rebuild your credit score, which can be helpful if you’ve filed for bankruptcy. With this loan, you make payments to the lender and receive the loan funds only after you make all your payments. So if you need money right now instead of the future, this loan may not be the right fit. Lenders that offer credit builder loans include Spring Financial, Innovation Federal Credit Union and Affinity Credit Union.

Credit builder loans tend to have lower maximum loan amounts at around $1,250 – $10,000, with interest rates generally ranging between 9.5% and 20%. Loan terms tend to be shorter, maxing out usually between 6 and 24 months.

Other types of bankruptcy loans in Canada

Besides personal financing, you also have access to other types of loans once you’ve been discharged from bankruptcy.

Bankruptcy mortgage

Since buying a house is one of the biggest purchases most people will make, lenders are very careful when approving mortgage loans. That said, it’s possible to get a mortgage with bankruptcy on your record. The most important factor is to show the lender that you’ve started successfully building up your credit history.

Each lender has their own criteria around bankruptcy mortgage requirements, but you’ll usually need to be discharged from bankruptcy for anywhere between a few months and two years to be eligible. Having a large down payment can also help improve your chances of approval.

Bankruptcy car loans

It’s possible to get a car loan after declaring bankruptcy, although your choice of lenders will be limited. You can improve your chances of getting approved for a bankruptcy car loan by taking some time before you apply to first build up your credit history. It can also help to choose a less expensive car and have a large down payment.

The lender will likely have to be in contact with your licensed insolvency trustee at some point in the process. You should expect the car loan interest rates you’re approved for to be on the higher side.

What to consider before you apply for bankruptcy loans

• Calculate if you can afford the repayments. Since your assets and income may have been affected by bankruptcy, you’ll need to seriously consider whether you can afford the loan repayments.
• Take the decision seriously. Applying for a loan when you’re in a difficult financial situation isn’t a decision that should be taken lightly. Consider the reason why you’re taking out the loan and determine if there are other, more affordable ways of paying for what you need without taking out a payday loan.
• Understand that you’ll be charged high interest rates. Lenders see borrowers who have previously defaulted on payments as higher risk, which is why they charge them higher interest rates.

How to find bankruptcy loans in Canada

There are a few things you can do to narrow down your options and find the right bankruptcy loan in Canada for you. Taking these steps before you apply for post-bankruptcy loans can help ensure you’re in the best position to qualify:

1. Get a copy of your credit report. You’ll want to know your credit score and what your credit report looks like before you apply for a loan after bankruptcy. You can request a copy of your credit report from one of Canada’s main credit bureaus, Equifax or TransUnion. Once you know your score, you’ll be able to figure out which loans you can apply for.
2. Check your credit report for mistakes. Go through your credit report very carefully to make sure that there are no errors. Errors in your report could bring your score down even further. If you find any errors, report them to the credit bureaus to have them corrected. Learn more about correcting errors on your credit report here.
3. Narrow down your options. Compare lenders that offer credit cards or loans to clients with bankruptcies, like the lenders above. You may want to call any providers you’re interested in to ask about the minimum credit score requirements and see if they have any procedures in place for approving loans with bankruptcies.

How can I be approved for bankruptcy loans?

While there are lenders who will consider applicants who are in bankruptcy or who have previously been bankrupt, filling out the application isn’t all it takes to be approved. Here are some of the requirements you may need to meet.

• Income. This is probably the most important factor for your application because lenders use income to determine whether you have the ability to repay a loan. Lenders typically have minimum income requirements, and you’ll need to provide proof of income, such as pay stubs or bank statements, to show that you meet the minimum.
• Employment situation. The stability of your employment also plays a factor, especially if you’re self-employed or a part-time worker. Different lenders have different restrictions, so be sure to check with the lender before applying.
• Age and location requirements. Most lenders only offer loans if you’re the age of majority in your province (18 or 19), and they may only service certain provinces and territories. You’ll need to provide them with a government-issued ID with your name and address, such as your driver’s licence.
• Assets. For loans after bankruptcy, the lender may require you to secure an asset for the loan as a guarantee in case you default.
• Guarantor. If you don’t meet the lender’s criteria, you may be able to apply with a guarantor to increase your chances of being approved. A guarantor agrees to sign the loan with you and cover your payments if you default on them. Their finances would need to be in good shape in order to qualify.

How does bankruptcy affect my credit and loan eligibility?

Whether you’re currently in bankruptcy or have a bankruptcy listed on your credit report, you’ll need to understand the long-term effects it has on your credit score and your financing eligibility.

• Your credit report. A first bankruptcy will remain on your credit report for six to seven years, while a second bankruptcy will remain on your report for up to 14 years.
• Your credit score before bankruptcy. If you had poor or bad credit before you declared bankruptcy, then your credit won’t take a huge hit because it’s already low (with the lowest possible score being 300). Lenders will take into account your credit history before and after bankruptcy and make a decision based on all of the facts.
• Your loan eligibility. Lenders may view your application as risky since you’ve demonstrated your inability to pay back your debts in the past. Once you find a lender willing to provide you with a loan, make sure you’re able to repay it in order to avoid falling into the vicious cycle of debt again.
• Your interest rate. Be aware that you can’t file for bankruptcy again for a few years. This means that predatory payday lenders will offer you money at very high interest rates. If you can avoid taking out a payday loan, you should; otherwise, you might find yourself stuck in another, often worse, debt spiral.
• Your payment history. If you do decide to get a loan, make sure you have a steady income that’ll help you pay it back on time and in full. This will help rebuild your credit after bankruptcy, which means you’ll have access to better rates down the road.

Frequently asked questions

• Do I have to pay money up front before getting a bankruptcy loan?

  No, a legitimate lender shouldn't ask you to pay any funds up front. In many provinces, it's actually illegal for a lender to request any money up front. If a lender charges an origination or processing fee for a loan, they'll typically deduct it from the loan amount. If a lender is asking for a prepaid card loaded with funds, you should look elsewhere for a loan — it's likely a scam. You should also be aware that loan insurance is never required.

• How do I find a lender who offers loans for discharged bankrupts in Canada?

  In order to find out which lenders accept bankrupt applicants, you can either browse our curated lists of bankruptcy lenders here or review the eligibility criteria of different lenders and call their customer service lines before applying.

• Do I have to disclose to lenders that I'm in bankruptcy or have filed for bankruptcy previously?

  If the lender's application includes a question regarding bankruptcy, it can be considered fraud if you don't answer truthfully. Besides, many lenders will check your credit report when deciding whether to approve your application, where they can see any bankruptcy in the past six to seven years.

• Are there bankruptcy loans that don't require credit checks?

  Yes. Some lenders of payday loans, credit builder loans and cash advances don't do credit checks.

• Does declaring bankruptcy clear debt in Canada?

  Yes, in most cases, declaring bankruptcy in Canada will clear your debts. However, there's a selection of "non-dischargeable" debts that are exempt from bankruptcy, including alimony and child support back payments as well as student loans (within seven years of when you stopped being a student).

• Can you get a line of credit with a bankruptcy?

  It'll be very difficult to get a line of credit if you have a history of bankruptcy. This is because lines of credit have flexible repayments and require financial discipline in paying off the balance. Lenders may find you too high of a risk for a line of credit. If you need flexible repayments, consider KOHO Cover or Nyble. Nyble in particular can rebuild your history as you make on-time payments.

Written by

Emma Balmforth

Producer

Emma Balmforth is a producer at Finder. She is passionate about helping people make financial decisions that will benefit them now and in the future. She has written for a variety of publications including World Nomads, Trek Effect and Uncharted. Emma has a degree in Business and Psychology from the University of Waterloo. She enjoys backpacking, reading and taking long hikes and road trips with her adventurous dog. See full bio

Emma's expertise

Emma has written 124 Finder guides across topics including:

• Banking
• Personal Loans
• Car Loans
• Business Loans

Co-written by

Aliyyah Camp

Contributor

Aliyyah Camp is a SEO content strategist and former publisher at Finder, specializing in consumer and business lending. Her writing and analysis has been featured in CentSai, the Dough Roller and the Chicago Tribune. She holds a BA in communication from the University of Pennsylvania. See full bio