11-03-2009, 05:02 AM
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Bankruptcy about to come off - better interest rates possible?
Do creditors give a better rate to those whose bankruptcy is about to come off credit report as opposed to one who more recently filed bankruptcy?
My bankruptcy will be off in a year. I have 3 small credit cards in good standing - never late. Negative marks are 10 small med/dr. bills that my ex was supposed to help pay but did not, and a car repo from 2003. I plan to pay off (w/pay for delete letters) the Dr. bills one by one to help improve my score. The repo was due to a huge financial crisis - job loss, no child support coming in due to ex husband's illness, and expensive car repairs that began occuring every 2-3 months - being a sub-prime loan (got car after bankruptcy) they repo'd the minute I was 2 months behind in payments. My credit score is about 593, so I'm still getting high interest rates on car loans - 18%. Any chance of negotiationg since my bankruptcy is about to come off and I have a good cc history now, or not even worth because of my history? 
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11-03-2009, 04:56 PM
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I'm sorry to say that I don't think your rates will get much lower until that BK actually comes off your credit report.
The reasoning is due to the fact that many people are repeat-filers -- once they go bankrupt the first time, they keep doing it every 7-10 years. You are right in that time frame where you could/might file again. Also given the medical collections and repo, a lender would see that as cause for you to file again, and so you are still considered a high risk to them.
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