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Creditors Want To Lend To Post-Bankruptcy Customers: 5 Reasons

by John G. Merna, Esq.

Credit After Bankruptcy: Reason Number One
Creditors make a lot of money lending especially when they can charge higher interest rates. Think about it. You paid minimum payments for years before your bankruptcy and probably didn’t see your balances go down. That was all profit in their pocket in the form of interest, many thousands of dollars a year, and you still owed them a lot of money. They want you in that trap again.

Credit After Bankruptcy: Reason Number Two
Creditors can charge you higher interest after your bankruptcy because you have less access to reasonable interest rates until you do some credit recovery. This means more profit from post-bankruptcy clients then clients with good credit. FYI, the attorneys at Merna Law developed and designed their own proprietary Credit Recovery Course, which is free to all our clients.  Check it out at this link.

Credit After Bankruptcy: Reason Number Three
Creditors have lower risk of you filing another bankruptcy because you are only eligible to file a Chapter 7 bankruptcy every 8 years.  Interest rates are suppose to reflect risk.  However, post-bankruptcy clients have a lower risk than people in debt prior to bankruptcy.  This is an advantage to lenders.

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Credit After Bankruptcy: Reason Number Four
Creditors know you are all “cash-flow”.  Think about it. You have gotten rid of all the debt that has been sucking your disposable income each month.  They want some, if not all, of that “freed-up” cash-flow.  But you are going to be smarter than that.  As our credit recovery course points out.  Credit is a tool, not a lifestyle statement.  Used wisely, it can help you grow rich.  Used thoughtlessly, it just makes you poorer.

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Credit After Bankruptcy: Reason Number Five
Creditors know you have been a credit “sucker” in the past.  Quick to get it. Quick to use it. And slow to pay it off.  Believe me, they are betting on you getting into that “credit trap” once again so they can make a lot of money off you. Don’t!


On a personal note, I appreciate all the thanks from our blog readers and clients about the various topics I write about. Stay tuned. Stay healthy and God bless.