Home Equity Loans and Credit Reports

Home Equity Loans and Credit Reports

From the Consumer Mailbag: Dear Cynthia: I would like to apply for a home equity loan to remodel my kitchen and baths. I am not sure what is on my credit report and would hate for the bank to deny my application because of it. What can I do to prepare to apply for this loan?

ANS: Lenders look for ability as well as willingness to pay, which is evident on your credit report. Start by checking your credit report for incomplete or inaccurate information. If there is any, dispute it immediately by writing the credit agency. Look over the number of accounts you have open. If you have several which are not being used, close them. It is important to pay bills on time. If you have accounts that show only a few on-time payments, concentrate on making as many on-time payments as possible before applying for the loan.

Source: Dollar, P. (1999, March). Talking dollars makes cents.
Re: Advance Preparation for Loan Application.


	Web site coordinators: Jamie Thompson Sandra McKinnon Site evaluation: Cynthia Crawford Last updated: March 09, 2005	Web site established by: Kate Akers Mark Belwood Cynthia Crawford Sandra McKinnon Diana Hammond

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