Interest Rates on Loans and Credit Cards after Bankruptcy
While it’s true that interest rates on loans and credit cards after bankruptcy may be rather high, it is not impossible to obtain a home, credit card, or car after filing.
Believe it or not some lenders actually look for people that have gone through bankruptcy. Not only will they be able to charge a higher interest rate, but they also know that you will not be able to declare bankruptcy again for a number of years. So, finding a credit card after declaring will not be a difficult feat. Still, you will want to build your credit back up after filing in order to gain lower interest rates on loans and credit cards after bankruptcy even though this may take awhile.
As soon as your bankruptcy period has passed, sign up for three credit cards. Make sure that you choose credit cards that report your payment history to the credit bureaus. Then, pay off your monthly balance on each card every month. Over a period of one year your credit will begin to improve allowing you to lower the interest rate on your existing cards. Until you have fixed your credit you will only be able to obtain a sub-prime mortgage and an auto loan that includes a high interest rate. If you need to have a car in order to get to and from work, you will have to take that high interest rate car loan. As with the credit cards, paying your monthly car payments on time will help you to fix your credit.
Obtaining interest rates on loans and credit cards after bankruptcy is entirely possible – in fact, many people rebuild their credit after filing without any problem. Some people even find that their credit is better the second time around as compared to the state of their credit before filing. The trick is to get those credit cards that include a high interest rate and pay them off right away. If you are not sure where to go after you are through with your bankruptcy, contacting your bankruptcy lawyer will certainly help.
The lawyer that got you through the initial filing can also help you after your bankruptcy term is over. A good lawyer will be able to make a solid plan for you to follow, which will help you to build back your credit. Speaking with a lawyer is the only way to ensure that you will succeed this time around.
You can gain low interest rates on loans and credit cards after bankruptcy as long as you work to build back your credit immediately. Filing for bankruptcy is tough, but you can bounce back from this financial crisis.