With a home equity line of credit loan, you can get cash whenever you want at low rates. Even if you have bad credit, you can still find a lender with better rates than credit cards or personal loans. The three tips below will help you get approved by the best company that gives loans.
- Get a copy of your credit report.
Do you know what your credit report says about you? You don't need to know this information to get accepted, but it will help.
There can be mistakes on your credit report, which could hurt you unnecessarily. Get a free copy of your credit history to double-check. You might also find accounts that are still open but that you haven't used in a long time. If you close these accounts, your credit score will go up and you may be able to get better rates.
You might also learn that your credit score isn't as bad as you thought. After two years, you can have a good credit score again. After a year or so, the importance of a late payment can also go down.
- Look first at conventional lenders
Even if you have bad credit, you can get a loan from a traditional lender. Depending on your credit score, these companies may offer the best rates. Even though they are traditional lenders, the rates for B, C, and D loans will still be higher.
You should also look into subprime lenders. They do a lot of business with people who have bad credit. They can also give you loans that aren't typical, such as giving you the full value of your home in cash.
- Don't lie about your credit score.
When you ask lenders for quotes, be honest about your credit history. The loan quotes they give you depend on how much information you give them. If you lie on your application for a line of credit, you won't get it. Quotes that aren't based on accurate information will also be wrong.
Bad credit doesn't mean you can't get any. No matter what your credit score is, you will be able to find a lender. So don't take the first loan you are offered. To find the best line of credit, compare lenders and the terms they offer. By researching companies for a few hours, you can save hundreds of dollars in fees and interest charges.