A bad credit refinance equity loan is a great option for people that have some equity and also have credit problems. It's easy to have more debt than you can handle. Credit cards, car payments, furniture and electronics debts; they can all add up to an overwhelming monthly figure. Thankfully, there is a way out; a poor credit refinance using your existing equity will allow you to get the money you need to pay off your debts. Without equity, your low credit score refinancing is a lot more difficult, but if you have a significant asset to act as collateral, its easy to secure a bad credit home equity loan.
Bad credit refinance equity loans will place your significant asset against the value of your bad credit home equity loan. The lending institution will be less concerned with your history of bad credit, as your existing equity makes the loan virtually risk free from their perspective. A bad credit home equity loan will allow you to transfer the balance of your debt away from high interest credit cards and store cards to a low interest, long term bad credit refinance equity loan.
What does this mean for me
This low credit score refinance solution will get current creditors off your back; as they will be satisfied with a payment in full for all debts owed. This complete repayment will also start to restore your overall credit score.
The bad credit home equity loan will also reduce your monthly payments considerably. A low credit score refinance spreads debt repayment out over a much longer term; and as a result, your repayments are substantially reduced each month. A bad credit refinance equity loan could drop your monthly payments by as much as 80%, and you'll still be paying off a greater percentage of the principal each month.
Poor credit refinance solutions also reduce the percentage of each payment that you make that goes towards interest payment. With credit card debt and interest rates as high as 20%, if you're not paying much more than the minimum payment, your paying almost all of your monthly payment in interest fees. A bad credit refinance equity loan should cut the interest rate that you're paying by more than 50%, meaning that twice as much of your monthly payment each month is actually going towards debt reduction.
Poor credit refinance loans sound pretty good. Is there a catch
Bad credit home equity loans are, on principal, a smart solution for people that have gotten themselves in debt trouble. There are however, unethical poor credit refinance providers who will attempt to get your business with false promises and actually intend to charge you significantly higher than market standard fees or interest rates. Thankfully, it's easy to compare poor credit refinance companies on the internet.
http://www.articleco.com/Article/Bad-Credit-Refinance-Needed--Use-Your-Equity-And-Get-Out-Of-A-Financial-Hole/39186
