How To Qualify For A Bad Credit Home Equity Loan Today
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.
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 receive these reports, you will need to examine them closely. In addition, you will need to know the statute of limitations for collecting debt in your state. The credit reporting agencies can report a derogatory mark on your credit report for up to seven years. If there are any debts that are on the report that you last made a payment on over seven years ago, you will need to send a letter to the reporting agency asking that they be deleted from your credit report.
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.
You will also need to send a letter to the company reporting the bad debt. Their address is listed on the credit report. Ask them for proof that the debt is yours. If they cannot provide the proof they must stop reporting it on your credit report. They only have thirty days in which to investigate and answer your request. Your return receipt will have the date they got the mail and start the clock ticking.
As mentioned earlier, the cost of certified mail and the return receipt is small compared to the amount of money this may save you in interest charges on your loan.
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.
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.
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 receive these reports, you will need to examine them closely. In addition, you will need to know the statute of limitations for collecting debt in your state. The credit reporting agencies can report a derogatory mark on your credit report for up to seven years. If there are any debts that are on the report that you last made a payment on over seven years ago, you will need to send a letter to the reporting agency asking that they be deleted from your credit report.
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.
You will also need to send a letter to the company reporting the bad debt. Their address is listed on the credit report. Ask them for proof that the debt is yours. If they cannot provide the proof they must stop reporting it on your credit report. They only have thirty days in which to investigate and answer your request. Your return receipt will have the date they got the mail and start the clock ticking.
As mentioned earlier, the cost of certified mail and the return receipt is small compared to the amount of money this may save you in interest charges on your loan.
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.
About the Author:
If you fall under low credit and don't want to lose the chance of your dream home, you should find out about bad credit home equity loan. You should see them all over the Internet and sometimes as a low rate home equity loan.
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posted by SolveItQuick at
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