Bad Credit Home Equity Loan | Mortgage

by EddieLamb

If you need money quickly but have bad credit then a bad credit home equity loan may be your only choice to get the money you need. Many lenders look at loaning money to persons with bad credit based on the equity in their home. The interest rates are higher than most other people pay for a home equity loan, however.

Persons having bad credit can often improve their credit score just by knowing a few tricks that often help. These tricks begin by obtaining a copy of each credit report that lender can order.

In the United States, the laws require that credit reporting agencies furnish you a free copy of your credit report every year at your request. You will also be able to request a free report if you have been turned down for a loan. You need a copy from all three of the major credit reporting agencies.

Once you obtain and review these records look closely for any inaccuracies being reported. In addition, a bad debt can only affect your report for seven years after it went delinquent. If any debts are beyond the seven year mark, you should ask that they be removed from your credit report. Make all requests by certified mail. You will also need to pay for a return receipt. This procedure will cost about five dollars, but is a necessary part of the process.

Nest you should know the statute of limitations for collecting debt in your state. If you are in the right state, a company only has four years to collect the debt. If any debts are out or your states statute of limitations, ask for an investigation by the credit reporting agency. Dispute the debt as not mine, since you are no longer legally responsible for the debt. Many collectors know that there is nothing they can do about the debt, so they will let it fall off your credit report rather than waste any more effort on trying to collect the debt.

At the same time you send the letter to the agency trying to collect the debt, you should also send a letter requesting that the credit reporting agency investigate the debt. By law they must contact the collector that made the report to confirm the debt and make a report to you within 30 to 45 days. If the debt is not confirmed by the collector, then it must be removed from your credit report.

All of the correspondence should be done by certified mail with a return receipt requested. Although you will pay about five dollars per letter, you will have proof that will be needed if the case ever goes to court.

Many people find that these two letters will remove many of the old delinquent accounts and improves their credit score. If you do this work before applying for a bad credit home equity loan, you may be able to improve your credit score to the point that you will qualify for a standard home equity loan. This can save you hundreds of dollars in the end.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

If you fall under low credit and don't need to lose the chance of your dream home, you should find out about bad credit home equity loan. You should find them all over the Internet and sometimes as a low rate home equity loan.