Refinance With a Low Credit Score - Tips To Get An Approval

Even if you have poor credit, you can still get financing for a home equity line of credit. Today, the competition within the lending industry has made it easier for people with poor credit to get approved for refinancing. There are even lenders who specialize in assisting people with poor credit in getting approval for refinancing.

The following are some tips on how to get approved for refinancing even if you have low credit.

Check Your Credit Report

It is crucial that you get a copy of your credit report. Once in hand, make sure that there are no discrepancies. You can obtain a free copy from one of the three national credit reporting agencies. You may also want to ask for your credit score. Typically, scores 650 and above qualify you for conventional rates. If your credit score falls below a 650, then you may want to look into sub prime lenders.

Boost Your Qualifications

The next tip is to boost your qualifications. For example, if you have bad credit or a bankruptcy, then by waiting two years after a bankruptcy you can qualify for conventional mortgage rates. Other ways to enhance your qualifications in the eyes of a lender are to have little debt, significant cash reserves and a large income.

Shop Around

Finally, make sure you shop around. Sometimes people with bad credit feel that if someone offers them a loan at a gigantic interest rate and fees, then they must take it because they have poor credit. This is not true. If you have poor credit, then look for the lenders that specialize in assisting people with low credit scores in obtaining financing. There are loans out there that you can qualify for without being robbed by large fees and rates. It helps to shop around before accepting an offer.