How Does Bankruptcy Affect My Interest Rates?
Posted By Jacoby & Jacoby on Aug 30, 2010 5:45am PDT
It is an instant relief when after you file bankruptcy, the creditors’ harassing phone calls stop but that stress is replaced by dealing with a severely damaged credit report that makes getting credit cards, car loans or mortgages tough. Getting approved for a credit card after your bankruptcy will be very difficult, particularly in the first two to three years. When you do qualify for a credit card again, it will generally start at the highest rates. Purchasing a car is possible in and after bankruptcy. Car ownership is one of the fastest ways to show positive credit history. However, expect to have higher interest rates. With on-time auto and credit card debt payments in the first two years of bankruptcy, you can begin to see a credit score that meets the criteria for a mortgage. Bankruptcy will have an adverse affect on the rate, but not make it impossible to own a home.
Are you thinking of
filing bankruptcy? We can help! Make sure to speak to
Jacoby & Jacoby either online or call us at 631-289-4600 to schedule a FREE consultation with one of our bankruptcy attorneys. We can review your individual situation and get you back on the right track.