Debra Booher &Associates Co., Lpa Click here to get your free Legal evaluation
Call Us Today Toll Free

Borrowing after bankruptcy to heal your credit: Part 2

A common myth about bankruptcy is that you won’t be able to apply for loans or credit cards until it’s off your record. In fact, there are many ways to show creditors that you are responsible enough to borrow despite bankruptcy.

In part one of our series, we discussed how to help your credit score rebound with a secured credit card. This post features options regarding loans.

Take out a loan with yourself

Although it sounds bizarre, it’s possible to create a proxy debt with yourself to prove that you can make similar payments. There are some services that can ensure this action counts toward your credit score.

For example, your self-started loan could be $500. You might set the duration to be 10 months and expect to pay $50 per month. After 10 months, you would receive that $500 minus the service’s minor charge for managing the loan and reporting to credit bureaus. The simple act of showing that you can set aside money for a monthly bill can significantly raise your credit.

The danger of unsecured loans

A self-loan or secured credit card might not be possible for you if you’re low on cash. You might start to consider an unsecured loan, which gives you access to more funds.

Be wary of this type of loan, however, because it might not be good in certain situations. If you can’t pay back an unsecured loan, you could suffer the consequences from sky-high interest rates and fees added to the original sum.

Credit score damage doesn’t have to deter you from filing bankruptcy. Seek legal counsel to know if bankruptcy can help you regain control of your finances.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Cuyahoga Falls Office
1350 Portage Trail
Cuyahoga Falls, OH 44223

Cuyahoga Falls Law Office Map

Beachwood Office
3401 Enterprise Pkwy.
Suite 340
Beachwood, Ohio 44122

Map & Directions

Independence Office
4700 Rockside Rd
Suite 415
Independence, Ohio 44131

Map & Directions

Westlake Office
1991 Crocker Rd
Suite 600
Westlake, Ohio 44145

Map & Directions

Canton Office
4450 Belden Village Street NW
Suite 204
Canton, Ohio 44718

Map & Directions

Ravenna Office
2633 St. Rt. 59
(Orchard Plaza)
1st floor
Ravenna, Ohio 44266

Map & Directions