Consumers Digest

I have very bad credit, but I need a home improvement loan.?

I own my house that is worth about 250,000, and I owe 77000 on it. No other second mortgages. I know that given my very poor credit rating I can only seek the assistance of a subprime lender, but where do I go to find a reputable.

Public Comments

1. Simple....Ask a few Realtors or Escrow Companys in your area. They should know. Each state has different laws.
2. There is no distinct indication of a bad credit loan on a report. If you pay on time then it good. If you're late then it's bad. Sometimes the industry code can be used if the company is scoring the data themselves. We used to do this when I worked for a major retailer evaluating credit. The theory was that if you were using a loan company like Household Finance or Beneficial Finance, instead of a bank, it must be that you got turned down by your local banks. On of the people on our accounts receivable team flipped out when she heard this, because she had bought some dishes and the store salesman had convinced her to finance them through the store, rather than her bank card, which turned out to be placed with HFC. Oh, well. It's more of a guideline rather than a rule.