If youve recently filed bankruptcy, you may be concerned about what interest rates youll receive on future loans and credit cards. This is a common concern. Though you may feel that the credit card offer you received in the mail has a ridiculously high interest rate, youre not sure whether or not its the best you can get in your current situation. This article will offer some information on how bankruptcy affects interest rates on loans and credit cards:

Interest Rates on Credit Cards

In a perfect world, credit card interest rates would be comparable to those of mortgages. Unfortunately, credit cards are unsecured loans, and this represents a significant risk to the lender. For this reason, credit card interest rates will always be high, even for people will immaculate credit. After bankruptcy, you can expect the highest interest rates charged, which is generally between 25 and 29.9%. However, once youve established a relationship with that company and proven that you can pay your bill on time every month, they will most likely lower your interest rate. Compare credit cards from multiple companies in order to find the best rates and terms and choose a reputable lender. Make sure that they report to all three major credit reporting bureaus monthly so that you can start rebuilding your credit.

Interest Rates on Auto and Mortgage Loans

For a couple of years after you file bankruptcy, youll be stuck with sub-prime mortgage and auto loan interest rates. This can require that you pay a much larger interest rate than someone else with credit that allows them to get approved for a prime loan. However, if you can wait a couple of years, you will be more likely to get approved for a prime loan. This can save you thousands of dollars over the life of the loan. In order to ensure better rates after a couple of years, start with small credit accounts and pay them on time every month. This will allow you to build credit and present yourself as a responsible borrower. This is a lenders biggest concern after a person has filed bankruptcy -- that theyll become unable to pay their debts again.

If you can prove that you can pay your debts, you will become much less of a risk. This results in interest rates that are much lower than they would be if you applied immediately after your bankruptcy was finalized. Here is a list of recommended Adverse Credit Home Mortgage Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.