FAST HOME EQUITY LOANS Home Equity Loans With No CreditThey may sound tempting, but beware of the no credit check equity loan. Anytime a borrower applies for a line of credit or loan, the lender is under law required to check the credit history of the borrower. Since large amounts of money are involved in a long term fixed rate mortgage, it is a potential risk to both the borrower and lender. The lender could lose if the borrower fails to meet their payment obligation and the borrower could possibly lose his/her home if payments are missed. Thus, when considering an equity loan and seeing a “bad credit, no credit check, no problem” loan, precede with caution, since many lenders will take advantage of the less fortunate. Payday lenders often offer minimal loans to consumers without checking their credit; however, mortgage lenders are under obligation to check the credit of their clients. Some lenders providing bad credit loans may offer the loan to consolidate debt, leading the clients to believe that they are on their way out of debt. Once the borrower steps into the trap, he/she soon learns their debts are increasing instead of decreasing. Furthermore, home equity loans can present a similar trap, luring the client in to a web of debt. Once agreeing to the contract, hidden fees are added to the monthly installments and the client soon learns he cannot meet his monthly obligations. This has happened to me. Therefore, when considering a home equity loan be sure to do a thorough background check on the lender and company offering the loan. Read the terms and conditions, including any fine print added to the contract. Remember, your home is at risk, so procede with extreme caution if you do not want to haphazardly venture in to financial ruin.  |