Monday, June 11, 2012

Will getting a cosigner for a loan help my credit rating after a Bucks County bankruptcy?

Once someone has completed their Chapter 7 or Chapter 13 Bucks County bankruptcy, credit repair is on everyone's mind.

One major way to improve your credit score is to get a cosigner for a loan.  If you get a cosigner and make your loan payments on time it will certainly improve your standing with the credit rating companies.  But the larger problem is asking someone to cosign with you as that person becomes equally responsible for the loan, even if the intent is that you alone will make the payments.  Many a friendship has been lost over cosigning after credit reports start suffering.

Consider what will happen if something unfortunate occurs and you are unable to make the payments.  Your cosigner then needs to step forward, even though  that was never the original intention. His or her credit rating is in jeopardy if he/she doesn’t make the payments in addition to your credit rating.  Think of the long term consequences very hard before deciding on a cosigner. After you finish your bankruptcy with a Newtown, PA bankruptcy lawyer, you should make a list of potential cosigners and determine your debt capacity to make sure everyone is satisfied.