The number one reason why some homeowners have difficulty getting a home equity loan is because of bad credit. In my company, we called it bad credit home equity loan.
If you have bad credit and is trying to repair your credit score, it helps to understand how credit score is tabulated and the factors going into credit score.
Credit score or FICO is created by Fair Isaac Corporation. It is a value that is used widely by many lenders to determine the interest rate that you will be charged as the homeowner. The credit score value range from 300 to 850. The lower your credit score, the higher your interest payment will be. Bad credit home equity loan applicants usually have a credit score lower than 600.
Your credit score is really like your financial score sheet detailing every major transaction you have with the lenders. So who keep tracks of your credit score? In the united states, it is done by the three major financial institutions namely Transunion, Equifax and Experian.
The factors that they take into consideration when determining your credit score are the amount of money you owed to banks, lenders etc. The length and type of loan. For example,...
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