Considering refinancing? There are so many alternatives, how to pick the right one? We have gathered the most useful and up to date information for choosing the right refinancing option for you. We hope this site proves useful for you in your quest! Don't forget to bookmark us!

Refinance Tips for Increasing Your Credit Score: Equity Loan Advice for Getting Low Rates

by Dana Jagodnik

Your credit score, based on your credit report, basically shows lenders the likelihood that you will repay what you owe. The higher your credit score the easier it is for you to qualify for loans and the better the interest rate you will be offered. However, if your credit is not so perfect, there are ways to improve your score. One option available to you, which can rebuild your credit is to do a refinance. Refinancing with a home equity loan will allow you to pay off those high balances and high interest accounts that have a negative impact on your credit history. Consolidating debt is the closest thing to starting from scratch and can often be a better move than creating new accounts and adding more debt to your history.

Your payment history is one of the most important factors of your credit score. Lenders will look to see that payments are being made on time, that youíre making at least your minimum monthly payments, and are not missing payments. Through the course of a

refinance it can be a good idea to pay off accounts with late payments, bankruptcies, or collections to improve your fico score.

Lenders also look to see that your credit limits are not maxed-out. Avoid carrying a balance that are more than 80% of your credit limit because creditors may view your high balances as excessive debt that you may not be able to stay current with. Therefore, during the course of a refinance itís a good idea to pay down and consolidate any debt that you can. The smaller the balances you keep the more it will reflect positively on your credit score.

After you have finished your refinance your work is still not done. You might have consolidated all your debt into your mortgage but your mortgage and other payments still have to be made. Make sure to make regular and timely payments to any creditors that you have left. This is especially important for you mortgage, which is probably one of the most highly weighted parts of your credit history.

It

takes some time for your new credit history to gain momentum. With patience and timely repayments, you will likely be able to build a new credit history that creditors will look upon favorably when making decisions about your ability to handle even more credit. Make sure to apply for new credit sparingly. Shopping around for credit can have an adverse affect on your score, especially during the course of a refinance. Each time you apply for new credit and that company checks your report, an inquiry is added to your credit file. Too many inquiries can be seen as an indication that you have had trouble getting new credit or could be overextending yourself.

Don't close unused credit card accounts near loan time. If you have several credit card accounts but are only using a few of them, you'll only raise your balance-to-limit ratio if you close the unused ones. You also shouldn't open new accounts when applying for a loan if possible. If you have a short credit history or very few

accounts, opening a new credit line may lower your score since you don't have a proven track record. What's more, a new account will lower the average age of your accounts, another factor in your credit score. Lenders will often look for 3 established trade lines to see that you can manage your credit and pay accounts off in a timely manner.

Dana has written many mortgage and real estate articles over the years. You can read more mortgage related loan articles at Mortgage Refinance & Debt Consolidation and learn more about refinancing equity loans even if you have less than perfect credit.

To get more free 2nd mortgage & refinance tips, please visit Bad Credit Second Mortgages. More credit resources can be seen at National Credit Score Index.

Related Articles

100 Percent Refinance - No Down Payment Refi Loans
Refinancing 100 percent of your loan allows you to cash out all of the value of your home. With no down payment required, you can use your money to pay off debt, invest in other property, or remodel your current home. When refinancing, make sure...read more

Bad Credit Refinance Loans - Finding a Good Lender
Finding a good lender to help you with refinancing your home loan can be tricky if you have bad credit. There are plenty of predatory lenders out there who would like to take advantage of you with excessively high interest rates and fees. The key to...read more

Deciding Whether to Refinance a Mortgage Loan
If you're considering whether or not to refinance your mortgage loan, you may find that the decision that you make will influence your finances for years to come. Refinancing can be a powerful tool to save money and receive better interest rates ...read more

How to Refinance Your Credit Card Debt with a Home Equity Loan
Are you burdened with a pile of credit card debt? Are you seeking options to reduce your debt? Run a search through the Internet, or seek some financial advice and you will realize that there are many ways you can achieve your objective. If you...read more

Mortgage Refinance Quote Offers Flexibility to Homeowners
Over the past several years, the housing market in the U.S. has boomed. Homeowners have watched their home equity balloon as housing prices have soared. In many areas in the U.S., modest homes purchased as recently as seven years ago have doubled...read more

Refinance Car Loan Ė How to Benefit from an Auto Loan Refinancing
Although auto loan refinancing is a great way to lower car payments and save money, few people consider this option. Car buyers refinance their auto loans for several reasons. Is the current interest rate or APR high? Maybe you accepted a...read more

Refinance & Mortgage Tips: Down Payment From 401k Or 403b Retirement Annuities
If you are purchasing a home and have a substantial portion of your assets inside of a retirement account such as a 401K, 403B or other retirement product or annuity, you may choose the increasingly popular option of tapping those funds to make a...read more

Need more information? Try a search:

Google