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.
After receiving these reports check them closely and dispute any accounts that are being reported inaccurately. In addition you need to find the statute of limitations for debt in your home state. While the bad debts can be reported for seven years on your credit report, many states only allow collectors a certain number of years to collect a bad debt. In some states it is as little as four years. If there are debts that are over seven years old, request that they be removed out of your credit report by sending an appropriate letter to the agency.
Next work on those debts that are older than the statute of limitations but less than seven years of age. Start by writing a letter to dispute the debt with the collection agency that has reported them to the credit reporting agency. They only have thirty days in which to complete their investigation, If they do not respond to you within that time frame they must have the report removed from your report. Once it is beyond the statute of limitations, they will often just let it drop because it's too much trouble and they have plenty of other people to harass about bad debts. In this case the derogatory remarks will fall 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 over time. If you do not have the time to wait for your credit score to improve, then you may need to look further into how to obtain a bad credit home equity loan.
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.
After receiving these reports check them closely and dispute any accounts that are being reported inaccurately. In addition you need to find the statute of limitations for debt in your home state. While the bad debts can be reported for seven years on your credit report, many states only allow collectors a certain number of years to collect a bad debt. In some states it is as little as four years. If there are debts that are over seven years old, request that they be removed out of your credit report by sending an appropriate letter to the agency.
Next work on those debts that are older than the statute of limitations but less than seven years of age. Start by writing a letter to dispute the debt with the collection agency that has reported them to the credit reporting agency. They only have thirty days in which to complete their investigation, If they do not respond to you within that time frame they must have the report removed from your report. Once it is beyond the statute of limitations, they will often just let it drop because it's too much trouble and they have plenty of other people to harass about bad debts. In this case the derogatory remarks will fall 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 over time. If you do not have the time to wait for your credit score to improve, then you may need to look further into how to obtain a bad credit home equity loan.
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