When credit repair is mentioned it is usually done side-by-side with debt. You could have a credit issue when you accumulate too much debt that overwhelms you and you are not capable of paying the debt off. Your credit score and rating will drop as a result and more often than not, getting your credit rating back up can be a major task to accomplish.
To get your credit rating back up you can decide between two alternative solutions which are dependent on your present state of finance and on whether you possess a home that currently has equity or not.
If you own a home with equity, you can then obtain a loan on the equity of your home and use this loan to pay your debt and improve your credit rating. You are able to loan as much as 80% of the present value of your viable home equity. However, this is only possible if you have a minimum equity of 20% available.
One option is to do a full refinance of your mortgage. You will have to weigh out your options as there can be fees to breaking your mortgage contract earlier.
Second mortgage is another option which can either be in the form of a line of credit on your home equity or as a loan on your viable home equity;
The interest rate on your home line of credit will be lower compared to that obtainable on other lines of credit since it is secured on your home.
With a second mortgage, you can settle your debts which have high interest rates with the money obtained and because the interest rate on the second mortgage is lower, your servicing of the second mortgage would not be as difficult to manage as your other debts and as you settle your older debts and engage in credit repair, your credit rating would improve significantly.
On the other hand, if you do not own a home and you are intent on credit repair, you are more than likely going to take a longer time settling your debts and it usually involves a continuous series of assessment of your credit history and communications with your creditors in other to work out a suitable payment plan that should get you paying off the debts and improving your credit rating eventually.
As a homeowner, you can avail yourself with the various options available for you to repair your credit, give us a call today and our experts will take you through these options to find which one solves your debt problem the best and put you on the path of credit repair.
Let us to track down the best mortgage rate & program. We can save you money and years off your mortgage! LEARN MORE
This is an online calculating tool for your mortgage planning. Calculate mortgage payments and budget. Plus options to become mortgage free sooner.FIND OUT NOW
Its Quick, Easy and Free! Only takes a few minutes.APPLY ONLINE
"The fixed vs variable debate"
We are happy to answer!