Home equity loans for bad credit score borrowers are available at slightly higher interest rates. These loans are available to homeowners that are holding equity in their homes and are in need of cash. Such borrowers can use equity in their homes to cover the amount of loan which they have requested.
Ways to Find Bad Credit Home Equity Loans?
You can find bad credit home equity loan by a variety of sources. You can go through yellow pages, you can search online using specific keywords on search engine, and you can also ask any of your friends or relatives who have already taken these services.
Requirements for Bad Credit home Equity Loans
The requirements for these loans are very simple. Lenders require the information about the first mortgage like balance and payment history. You can submit this information either by fax, in person or online via electronic mail.
Interest Rates on Bad Credit Home Equity loans
Interest rates are not always what are advertised by the banks, mortgage brokerage or other lending institutions. So it is advisable to borrowers to carefully investigate about interest rates which they are going to have. Generally, credit score determines the interest rate of the borrowers. It is important for borrowers to check your credit report from all the three credit bureaus to see where is your credit score is standing. If you find any mistakes in your credit report then dispute them.
Effect of Inaccuracies
Inaccuracies on your credit report can ruin your financial position. Inaccuracies can lower your credit score. So it is better for you to correct these mistakes. After getting your credit report free from errors, request for quotes from the lenders.
Avoid Collecting Quotes with Bad Credit Score
It is not a wise practice to collect quotes from too many lenders and allow them to pull out your credit report. It is because you are already having bad credit and when different lenders will check your credit report your score will go down each time by 1 point. So make sure first you raise or repair your poor credit score.
Use Quick Methods to Raise Credit Score
Sometimes lenders hesitate to provide lower interest rates on bad credit home equity loans unless the borrower’s credit score becomes stable. In such situation, borrowers have to take quick credit raising measures. Calculation of card balance to limit ratio is the most effective and fastest method to raise your credit score to get your bad credit home equity loan application approved. If you find the ratio more than 20% then you can pay off the balances and it can raise your credit score to up to 30 points in as little as only a month. If you don’t have sufficient funds to pay off the balance then you should consider taking help from any of your fast friends or relatives. With he financial help from a relative or friend, you will be able to take out a lower interest bad credit home equity loan.
