How does bankruptcy affect interest rates on loans? Credit cards?

bankruptcy affects your credit score, essentially reducing it to the lowest possible. The lower the credit score the higher the interest rates on all type of credit, assuming a creditor will even lend to you.

How does bankruptcy affect interest rates on loans? Credit cards?

Filing bankruptcy will essentially knock you out of the running for any type of credit. If a bank will even look at you for credit issues they will charge you sky high interest...in the 20-30% range. Not worth it.

How does bankruptcy affect interest rates on loans? Credit cards?

If all people to whom the banks have lent money become bankrupt the bank would run into loss and to come out of red bank has to increse the lending rates . Simplified answer

If any singele person becomes bankrupt then he becomes a risk for any further lending . He may once again become a spendthrift or gambler or risk his borroowed money recklessly since it is borrpowed mony. In such cases the rates willo be higher.Infact many would not even risk at higher rate.

How does bankruptcy affect interest rates on loans? Credit cards?

Don%26#039;t listen to advise that is not based on life experience.

A repossession or foreclosure is much worse than bankruptcy. Creditors know you cannot file for another seven years.

Fact: I purchase a new car through Ford Credit at 3.9% just two years out of bankruptcy

Fact: I financed a home Mortgage at 6.25% just two years out of bankruptcy

Fact: I obtained mid 600 score just two years out.

If you want to know how bankruptcy changes your life...talk to someone who%26#039;s been there...twice. (divorce, divorce,divorce). Idiots giving advise about which they know nothing abound.

But heres the thing, you need to monitor your credit reports closely for a couple of years after wards. And go to the bookstore and purchase %26quot;Guaranteed Credit%26quot; by Arnold S. Golstein