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Post by littleitaly on May 21, 2011 18:49:02 GMT -5
I am currently hovering around 600 rating and am interested in a HELOC. After doing research I have several leads for private lenders that 'specialize' in HELOCs to credit ratings like mine. My plan is to consolidate revolving debt, paying back some bad debt and get a little cushion.
Not giving the semantics of my financial scenario, is it wise to trust these companies? Are there reputable nationwide lenders that do poor credit HELOCs?
Thanks in advance for anything you all can help with.
Matt
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constanz22
Senior Member
Joined: Dec 18, 2010 14:32:17 GMT -5
Posts: 4,219
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Post by constanz22 on May 21, 2011 18:53:55 GMT -5
Not getting into whether it's a good idea for you or not, just answering your question...about 6 years ago, my credit was not good, lots of debt, low FICO (maybe 625 or so) and I took out a Home Equity loan, not line of credit, through Beneficial. They were fine. I didn't have any problem with them. Of course, the interest rate was higher than most regular banks, but it was way cheaper than a lot of my 29% CC's.
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Deleted
Joined: Jun 30, 2024 1:59:15 GMT -5
Posts: 0
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Post by Deleted on May 21, 2011 18:58:18 GMT -5
I actually heard or read something about this recently. You are converting unsecured debt to secured debt. If you default while it's unsecured, your home is ok. If you convert it to secured, you may lose the house.
Think about it. Most people who do this don't change their habits; they only get further in debt. My ex and I did this a couple of times. The last time was when we got divorced, and I "paid" off half the debt by having it subtracted from my half of the house. No idea how he is doing now, but I haven't been in debt since.
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