Home equity loans for bad credit are offered at slightly higher interest rates to homeowners that have enough equity in their homes to adequately cover the loan amount requested. A home equity loan for bad credit can be found by flipping through the yellow pages; online by typing a few keywords into a search engine; and by asking friends and family for referrals. Securing this type of loan requires information concerning the original mortgage, such as balance and payment history. This information can be submitted in person, faxed, or given online via the Internet.
Borrowers requesting a home equity loan for bad credit should be aware that the interest rates advertised by a particular lending institution such as a bank, or mortgage brokerage will not apply to them. The borrower will receive a higher interest rate, as interest rates are directly determined by credit score. It is advised that prior to application, a borrower receive a copy of their report from one or all three nationally recognized credit reporting agencies: Experian, Equfax, or TransUnion.
