About Home Equity Loans & Bad Credit

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Home equity loans are good for people with bad credit because banks will use the home as collateral for the loan, instead of looking at credit scores. Secure a home equity loan by consolidating outstanding debts with ideas from a mortgage specialist in this free video on home equity loans.

Part of the Video Series: Real Estate Financing
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Video Transcript

Hi my name is Stetson Lowe and in this clip we're going to be talking about home equity loans and bad credit. A home equity loan allows a borrower to borrow portions of the home's equity securing that with the collateral as your home. And this is sometimes attractive to people with bad credit because the banks will lend to you a large sum of money based on your home as collateral and not put quite as much emphasis on your credit score alone as with an unsecured loan. So if you have bad credit and are looking to borrow a large sum of money, a home equity loan might be a good way to go. With bad credit, sometimes come high interest rates and if you have an auto loan with a really high interest rate or credit cards unsecured debt that has 29, 30% interest, it might be a great idea to consolidate those debts into one lower rate home equity loan that can allow you to take advantage of a lower rate and lower your payments by 100's of dollars a month thereby allowing you to pay the debts off much quicker.

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