Frequently Asked Questions about Bad Credit Home Equity Loans

Here are the answers to the most commonly asked questions about bad credit home equity loans.

What are bad credit home equity loans?

Bad credit home equity loans allow you to turn the equity you've built in your home into cash for your financial needs. Equity refers to the appraised value of your home minus the amount you owe on your mortgage or other home loans. For instance, if your home is worth $300,000 and you owe $250,000 on your mortgage, your equity would be $50,000. Bad credit home equity loans are secured loans for people with credit challenges. Your house serves as collateral with bad credit home equity loans.

Who are bad credit home equity loans for?

Bad credit home equity loans are for people with significant credit challenges. Usually, this means that your credit score falls below 620. You might have a history of bankruptcy, charge-offs, or late payments on your credit report. Bad credit home equity loans are ideal for people whose credit prevents them from qualifying for traditional equity loans.

What can I do with bad credit home equity loans?

You might apply for bad credit home equity loans for a number of reasons. You might want to consolidate debts, pay for a college education, renovate or remodel your home, buy a new car, or handle emergency financial needs. Bad credit home equity loans can usually offer significantly lower interest rates than credit cards or other unsecured loans.

How do I apply for bad credit home equity loans?

You can apply for bad credit home equity loans by filling out our free application on our site. We will ask you for some basic information and then supply you with at least four quotes from major lenders across the country. Our lenders compete for your business because you see their quotes side-by-side to help you compare. We offer some of the most competitive bad credit home equity loans in the business.

Do I have enough equity in my home to qualify?

To determine the amount of equity you have in your home, you will need to know the current appraised value of your home and the outstanding balance on your mortgage. Your equity is the appraised value minus debt. If your home is worth more than you owe on your mortgage, you can apply to convert this equity into cash with bad credit home equity loans. If, on the other hand, you owe more than your home is worth, then you are "upside down" in the loan and might want to consider refinancing.

What types of bad credit home equity loans do you offer?

Bad credit home equity loans come in several varieties. You can opt for cash-out refinancing, which allows you to refinance your current mortgage for a larger amount and take the difference in cash. You can also choose a home equity loan or line of credit. A home equity line of credit works much like a credit card, but it is secured against your home.

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