Bad Credit? With Poor Credit You Can Still Refinance Or Get A Home Equity Line Of CreditWritten by Carrie Reeder
Have you decided to refinance your home or apply for a home equity line of credit but worry about your credit rating? Even with poor credit it is possible to refinance your existing mortgage or obtain a home equity line of credit. New practices in lending industry have made it easier than ever for you to refinance your mortgage or get a home equity line of credit. If you have adverse credit, specialized lenders can help you find loan package your need with an interest rate you can afford. Refinancing your home loan can allow you to make improvements to your home or consolidate debts. Some lenders offer loans up to 125% of your home's value even if you have less than perfect credit. Your current mortgage terms and interest rate, length of time you intend to stay in your home, and level of debt your currently have are all factors to be considered in making decision to refinance your mortgage. If you have equity in your home, you will often receive a lower interest rate than those with little or no equity. Home equity lines of credit are revolving accounts with your home serving as security for loan. When you get a home equity line of credit you are approved for a certain amount of credit. The maximum amount you can borrow at a given time will depend on your credit limit. Typically, a home equity line of credit will have a variable rate of interest although some lenders may offer a fixed rate as well. You will have an amount you can borrow at any given time and you may not borrow more until a certain amount is repaid. Often you will have specific times as to when you may borrow money from your available credit limit.
| | Credit Reports – Why Your Credit Score is ImportantWritten by Charles Essmeier
If you have never heard of a FICO score before, you should become familiar with term. Named for firm that invented it, Fair Isaac Corp., FICO score is three-digit credit summary that, in essence, reduces your entire financial life to a simple set of numerals.
The score represents a distillation of information gleaned from three main credit-reporting bureaus – Equifax, Trans Union, and Experian, regarding your loan and payment history, as well as any bankruptcy filings you may have made. Andy liens or payment defaults will be incorporated into score as well. The score, which can vary from a low of 300 to a high of 850, represents an attempt to quantify a lifetime of financial dealings into a single number. It has been quite successful. In fact, most people would be surprised to see just how important that score has become and how many businesses use it for reasons that aren’t entirely obvious.
Most people would assume, correctly, that lenders would check score of a potential borrower who was applying for a car loan or a home equity line of credit. Many would be surprised, however, to see that score is often accessed by potential employers, landlords, or even insurance companies. While some states have strictly forbidden use of FICO scores as a guideline for setting
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