maintain high credit scores
high credit scores mean lower rates
Your credit report is used by banks and other lending institutions to determine your credit worthiness. The report can be a factor in a lending institution's decision to approve or decline your home equity application.
You should review your credit report for any errors before applying for a home equity.
Lending institutions review the following information from your credit report to determine your creditworthiness:
your current outstanding debt
places and number of times you've applied for credit
the kind of credit you have taken out in the past
over extension of your credit lines
You need a credit history of at least one year to ensure a good credit report.
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The FICO Score
The FICO score determines the rate the lender may charge you. The score estimates your ability to repay a loan as evidenced by your credit history. Lenders will sometimes give you a better home equity rate based on a high credit score and good credit report.