Equity Loan Bad Credit: Increase Your Chances of Approval

2007-03-08 10:33:40

( Financial )



Whether you believe it or not, equity loan bad credit is one of the solutions that you can benefit from, as people with bad credit are offered lower equity line rates in contrast to personal or credit card loans that can be made available to you.

There are some methods that you can follow in order to increase your chances in getting an approval for an equity loan bad credit.

One way is to obtain a copy of your credit report, and ensure that all the information that is contained in the report is accurately reported. If there are any errors, it should be promptly reported to your local credit bureau.

A dormant bank account can be a cause of a low credit score, and therefore must be closed if it is not being used. A record of bankruptcy affects your credit standing, and will only clear itself after a number of years; consequently, any records of late payments are deleted after about a year.

You should give an honest report on your credit record. Having a bad credit line does not necessarily mean that lenders will deny your application.

Contacting as many lenders or brokers as possible will increase the chances for you to get an approval. Equity line rates differ with each lender, along with fees, repayment reschedules and decisions on whether future refinancing can be an option with your equity loan. Contacting more traditional lenders such as subprime lenders that specialize in equity loan bad credit will also help increase your chances for an approval.

It is important to note at this stage that online lenders normally offer better equity loan interest rates since there is a fierce competition amongst these lenders. Financing companies can also offer you reasonable equity loan interest rates as the company operates with lower overhead expenses.

Once you have decided on a lender, the application process will only take you several weeks. Once your application is reviewed, verified and approved, it will only take a certain number of weeks for you to receive the loan funds.


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