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If you want to have bad credit, but to save money and fix your credit score, you take a home loan. Of course, you must first have a house, but if you already have a house and seriously raising credit scores and save money, then a 2nd mortgage is a good start. Home equity loans allow you to pay collections, suffering, judgments and past due credit cards. Although he had a year before the bankruptcy equity loans can provide many solutions for the homehigh interest debt problems. Second mortgages have become somewhat easier for homeowners to qualify for with credit issues, such as, low credit scores, late payments, or collection accounts.
The down-side is that you won't be offered prime interest rates from any second mortgage lender if you have low credit scores and past late payments reported with your mortgage loans. Is paying a higher rate the end of the world? Of course not... It is a temporary finance solution to get you back on track.
The bottom line you need to focus on is whether or not the home equity loan offers you monthly savings by consolidating your debt. If you save a few hundred dollars a month and eliminate revolving credit cards, then who cares what about the interest rate. Besides, as soon as your credit score increases to a 680 fico, you can refinance the sub-prime equity loan for a reduced rate second mortgage and save even more a month. Remember, "Rome wasn't built in a day." With debt consolidation, it's not all or nothing. If you can save money now with a bad credit home equity loan, then take advantage of the monthly savings.
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