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One of the best ways to borrow money if you have poor credit is with a bad credit home equity loan. Many lenders will consider loaning money to you on that basis that would not touch you with any other type of loan. Just be prepared to pay more interest on the loan than someone with good credit would pay for the same loan.
by EddieLamb
One of the best ways to borrow money if you have poor credit is with a bad credit home equity loan. Many lenders will consider loaning money to you on that basis that would not touch you with any other type of loan. Just be prepared to pay more interest on the loan than someone with good credit would pay for the same loan.
If you have bad credit there may be some things that can be done which will help to improve your credit score. You will need to begin by ordering copies of your credit reports.
The United States laws require that you be provided a free annual credit report every year. In addition, you can request a free copy any time you are turned down for a loan. You will need a copy from the big three credit reporting agencies.
Once you obtain and review these records look closely for any inaccuracies being reported. In addition, a bad debt can only affect your report for seven years after it went delinquent. If any debts are beyond the seven year mark, you should ask that they be removed from your credit report. Make all requests by certified mail. You will also need to pay for a return receipt. This procedure will cost about five dollars, but is a necessary part of the process.
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 they have other people to harass about bad debts. The derogatory remark falls off of your report.
At the same time you send the letter to the agency trying to collect the debt, you should also send a letter requesting that the credit reporting agency investigate the debt. By law they must contact the collector that made the report to confirm the debt and make a report to you within 30 to 45 days. If the debt is not confirmed by the collector, then it must be removed from your credit report.
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 if you have the time. If you do not have the time to wait for your credit score to improve, then you may need to look further into a bad credit home equity loan.
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