Poor Credit and a Home Equity Loan
Poor Credit and a Home Equity Loan
The credit score is used by the lender as an indicator of your payment history. The average credit score required is around 600. In case you have a low credit score, you need to take your time to improve it before applying for residential real estate secured funding.
There are many people with poor credit histories who avail home equity loans in order to carry out debt consolidation and to repay high-interest credit cards. If you have already taken a short-term residential real estate funded loan, you can pay that off along with other loans by getting a home equity loan. Make sure you repay this loan with proper monthly installments, and your credit score will improve.
Poor credit impacts the interest rate you will be offered in the conditions for other loans. If you have not checked your credit report for a long time, you can get a free copy which you are entitled to once in a year. It is possible that the report bears errors. Make sure you point these out through correspondence to credit agencies and get it corrected. With the possibility of identity theft looming, it is important to keep a regular watch on your credit report.
