Many people are interested in getting the cash they need by tapping into their home's equity. Questions we are often asked relate to a person's credit. The questions sound something like this:
- How important is my credit for getting a home equity loan?
- How does my credit score affect a home equity loan?
- Can I get a home equity loan with bad credit?
These are important questions to ask. Like all loans and financing, a lender has several things to consider before approving a home equity loan and determining terms of the loan.
Credit history and credit scores are an important consideration. Credit scores and reports give lenders important information required to make their decisions.
Here are the basics when it comes to credit and your home equity loan:
- The better your credit, the more likely you will be approved for a loan.
- The better your credit, the more likely you will get a more attractive interest rate.
This is also true for most loans and lines of credit.
This means it's important to do the things that help raise your credit score. One of the most important factors is having a track record of consistently paying your bills and loans on time.
If you have any questions about home equity loans or your lending options, please contact us today.