Written by Info Expert on February 24, 2010 | Posted in Finance and Money

If you are desperate for cash, a mortgage refinance bad credit loan may be your solution. These loans tap into the equity you have built up in your home to offer you extra money. The equity is used to secure the loan refinance and you can specify how much money you would like to borrow based on the equity in your home and your previous repayment history. If you have been able to repay your previous mortgage in a timely manner, lenders will be able to work with you to offer better interest rates on your mortgage and save you hundreds of dollars a month.

What do you need the extra cash for? If you want to purchase a car, consider bad credit auto loans instead of refinancing your home. When you refinance, you will pay for the loan over a span of 30 years. Buying a car and paying for it for 30 years is a little ridiculous so you might as well use a bad credit auto loan and pay the higher interest rates for 3-5 years versus 30 years.

To gain approval for a loan, you need to follow these tips to improve your chances:

1. Talk to multiple dealers. There are some dealers that have credit score cutoff rules. They will not offer a loan to you if your credit score is below 620 while others will not work with you if your score is below 580. Learning the interest rate cut off amount will give you the chance to reduce your pool of lenders to the companies that are truly interested in you.
2. Find out how much money you can get approved for before you start car shopping. Keep the amount within your budget restrictions and avoid buying a car that you cannot afford. How much will the monthly payment amount be with the taxes and other fees added in?
3. Can you afford to put down some money on the car? Even a small down payment will reduce your risk ratio and this makes you more attractive to lenders.

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