There could be a number of reasons why you might want to take a loan.
However, if you have a bad credit score, things could get difficult as a bad credit score means you will most likely not receive a low-interest rate or your loan application may get rejected altogether.
In such a case, a home equity loan may be the solution for you. Even with a bad credit score, it is very likely that the home equity loan will get approved, and you can also get a lower interest rate compared to a traditional loan or a line of credit.
This is because your home or property is the collateral here, which makes you less of a risk for the lender.
You can get a home equity loan of an amount up to 80% of the equity in your home.
The greater the equity you have in your home, the more suitable a candidate you are, and even more so if you own 20% or more equity.
Let’s take a look at what you need to know if you want to get a home equity loan with bad credit score.