Bad Credit Debt Consolidation Loans - Getting a Debt Consolidation Loan, Even With Poor Credit

 


Visitors: 758

An online debt consolidation loan allows even people with a poor credit to reduce their overall monthly payments and regain their financial footing. While there are personal loans that allow you to do this, tapping into your home’s equity is a better option.

Choosing A Loan

Refinancing your home to access your home’s equity enables you to pay off your short-term debt and write off the interest on your taxes. A line of credit won’t let you do that.

With bad credit, your interest rates will be slightly higher than a traditional mortgage, but they will be lower than a line of credit. You also have the option to refinance your loan in two years, after you have established a good credit record.

Applying To Online Lenders

Online mortgage lenders offer financing to all sorts of credit situations, including those with bankruptcy or a foreclosure in their records. Before you begin the process, take the time to research refinance options by different lenders. Compare rates and terms to find the best fit for your situation by requesting quotes.

One you have picked a lender, go ahead and apply online for the deepest discounts. Usually a lender will reduce fees or interest rates for online applications. Unlike a regular mortgage, your home equity loan will take some time to approve since the lender has to verify the value of your home.

If you believe the listed price of your home is undervalued, request an appraisal. With today’s hot real estate market, home values are rising between 5% and 50% a year.

Plan To Refinance In The Future

When you have received your home equity loan, make plans to refinance again in two years. In those two years, you can build your credit score to good by making regular payments on all your bills. You can also raise your score by closing credit card accounts with lenders.

If your lender doesn’t automatically refinance your loan, approach them with a request for a quote to refinance. Typically, your lender will give you a better than market rate. However, you still should compare quotes of other lenders to see if you can find a better finance deal.

To view our list of recommended debt consolidation companies online, visit this page: Recommended Debt Consolidation Companies Online .

Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans.

(438)

Article Source:


 
Rate this Article: 
 
Poor Credit Debt Consolidation Loans
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Bad Credit Debt Consolidation - What Are Your Options to Reduce Your Debt With ..

by: Carrie Reeder (September 24, 2005) 
(Finance/Debt Consolidation)

Debt Consolidation Loans Bad Credit-Is It Possible To Get Debt Consolidation ..

by: Josh Neumann (August 23, 2007) 
(Finance/Debt Consolidation)

Bad Credit Debt Consolidation Help - Get Help To Get Out of Debt and To ..

by: Apurva Shree (May 28, 2007) 
(Finance)

Bad Credit Debt Consolidation Loans - What You Must Do After You Get a Loan

by: Joe Stevens (July 31, 2008) 
(Finance/Debt Consolidation)

Loan Security For Debt Consolidation Loans For People With Bad Credit

by: John Mussi (December 02, 2006) 
(Finance)

Bad Credit Debt Consolidation Under a Debt Consolidation Loan

by: Charles C. Parson (May 15, 2007) 
(Finance)

Bad Credit Debt Consolidation Loan - Merge Your Loans To Reduce Your Worries

by: Andrina James (June 08, 2007) 
(Finance)

Ensure Debt Free Life Through Debt Consolidation Loan Bad Credit

by: Eva Baldwyn (August 29, 2006) 
(Finance/Debt Consolidation)

Bad Credit Debt Consolidation Loan - A Sound Way To Get Rid Of Debt

by: Asheesh Mani (December 15, 2007) 
(Finance/Debt Consolidation)

Poor Credit Debt Consolidation Loans

by: Rebecca Game (January 06, 2006) 
(Finance/Loans)