Qualify For More Than A Bad Credit Home Equity Loan Now
February 3, 2010 by Eddie Lamb
Filed under Debt Consolidation
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.
If you have a little time, it is possible that you may find you can improve your credit rating and qualify for a better loan. You will have to begin by getting a copy of each of your credit reports.
The United States laws require that you be provided a free annual credit report every year. In addition, you can request a free copy any time you are turned down for a loan. You will need a copy from the big three 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.
Next, you can begin to work on those debts that are beyond the statute of limitations for your state, but less than seven years of age. Begin by writing a letter of dispute to the company that has reported the debt to the credit reporting agency. By law they have thirty days to investigate the debt and either send you confirmation that the debt is yours or have it removed from your credit report. If it is beyond the statute of limitations for your state, they cannot sue you in court for the money, so many will simply revise the report and the bad debt falls off of your credit report.
When you send the letter to the collection agency, also send one to the credit reporting agency. Ask for an investigation of the same debts. They must by law contact the collector and investigate the debt. If the creditor does not return the inquiry, then the debt must be dropped from your report. This often works to your advantage.
Do all of your correspondence about debt by certified mail requesting a return receipt. This will cost about five dollars but will save you money in the end if you improve your credit score.
These two letters may go far to repair a poor credit score and allow you to qualify for a better interest rate if you have the time. If you do not have the time to wait for your credit score to improve, then you may need to look further into a bad credit home equity loan.
If you fall under bad credit and don’t want to lose the chance of your dream home, you should find out about bad credit home equity loan. You can find them all over the Internet and sometimes as a low rate home equity loan.