I'm Bo Majors
 I got my free credit report, flipped out, paid bills, asked for credit help, got new good credit and disputed errors on my credit report. 

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 I read your website and used a lot of the information you provided and was able to raise my score from 571 to 671 in 2 1/2 months. Thank GOODNESS for your website. IT WORKS!
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= The TOP reason for low credit scores with good credit is debt ratio to available  credit limits. When debt goes to 80% of high credit available then, scores go down. Improve credit fast by reducing or paying off debts.  

 Debt consolidation using a second mortgage or home equity loan or equity line of credit.
 Second mortgages and home equity lines of credit are one of the favorite ways to consolidate debt problems if I my home, have enough equity my house and have a good enough current credit record to qualify and get approved.
 I do not considered this option lightly as I have now put my home up as collateral for debt that was previously unsecured. This option is attractive and sometimes good because one can deduct interest and get lower payments without disrupting good credit. Home equity loans. and 2nd mortgages very attractive options to reduce or consolidate credit card  debt. 

 How is Home Equity figured and how do second mortgage loans work?

• If I have home and it appraises for $100,000 and I owe 70,000, then I have $30,000 in home equity. Most banks use and 80% equity as a max point for home equity without charging a big fees or interest.  So My above situation shows I have $10,000 available for a home equity loan or second mortgage. Many lenders will go higher but we know that they will all do 80%.

What is a home equity line of credit or a second mortgage?

• Home equity lines are set like a credit card where I have a beginning open and available line of credit fixed to my home equity. Lets say $10,000 as above. The line of credit will have a fixed interest rate based on my home as collateral if I default. Home equity lines allow me pay off credit cards or other loans as I wish and I pay very small minimum monthly payments. I should get on a budget to start paying this equity loan down after I consolidate all my high interest loans.

• Second Mortgages are set up like regular loans where I borrow $10,000as above, I am given a payment schedule and payment book. The money goes into my bank account or they write me a check to make payments. If I am in an obvious credit report bind the loan officers will sometimes make the payments for me to make sure the money is spent in a way to help me. Usually some of the money will be left over to clean up untidy bills here or there and catch up on regular utilities and family stuff.

The pros:

• The interest paid on the loan is tax deductible.

• The interest rate is often drastically reduced.

• The monthly payment is often drastically reduced.

• Your payments become more manageable since only 1 payment is made.

The Cons:

• The payments are often stretched out over a longer period of time.

• Lower equity in your home makes you less money if you sell.

• You can jeopardize your home to foreclosure.

• You have to qualify based on your credit score, income and job stability.

Must do if you choose home equity financing to consolidate debt.

• You must decide not to charge up more debt at least until the equity has been paid back.

• Go on a budget and try to discharge the debt earlier than required.

• Decide before hand when or whether you may plan to sell your home.

Get Free bids and find out if a home refinance, 2nd mortgage or a home equity line of credit will help you. 

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