Your credit score can be as low as 550 if you are below 80% combine loan to value and you are able to provide full income documentation as well.

1. Credit Cards Rates are Higher than 2nd Mortgage Rates-
Credit Card interest Costing You Money Every Month

The primary reason why most homeowners consider paying off credit card debt by consolidating all of their outstanding credit debt into a second mortgage is because the interest rates on their existing credit card are simply too high. Stop throw money away every month and take advantage of lower payment second mortgages.

2. No Annual Fees with Fixed Rate Second Mortgages-

A common trend for bank's issuing credit cards and home equity lines of credit lately has been to charge borrowers an annual fee for using the credit card or line of credit. In some cases these annual fee can be costly.

3. Change Your Low Credit Scores into High Credit Scores-

Many homeowners have circumstances arise that cause their credit scores to suffer. If you own a home and have some equity in your home, chance are you can save a pretty penny, by getting a second mortgage to wipe your debt clean. Even if your existing credit card that have late payments, it's most likely still going to benefit you to consolidate your debt with a 2nd mortgage. Recently the underwriting guidelines for second mortgage programs have become more lenient than ever before.

If you have had a past bankruptcy, foreclosure, repossession, or have been late on your mortgage payments, you still may qualify for a fixed rate second mortgage. If your consumer debt is starting to concern you, and you are having trouble sleeping, it's time to consider your second mortgage options. If you are no longer able to make the monthly minimum payments in a timely manner, it's time to consider your options for a second mortgage that can lower your payments significantly and help your credit score increase. Making your second mortgage payment on time every month will help your credit scores go up because the timely mortgage payments weigh heavy with fico scores.

4. Second Mortgage Loans Have Interest that is Tax Deductible-
Credit Card Interest is not.

Like your first mortgage loan, second mortgages up to your home's value are tax deductible in most cases. Many first time homebuyers run up their credit cards after buying their 1st home, because they need furniture, and sometimes need to make some immediate home improvements. If you have some credit card debt and you pay taxes out of each paycheck, like most Americans, it might be time to consolidate your credit cards and find some additional cash come back to you when you do your taxes.

If you have had past credit problems, we suggest disclosing them with the loan officer. Loan professionals understand the credit obstacles in life and quite often they can help you find the right loan program that may help you prevent future credit pitfalls. Always provide the loan officer with documentation you have to prove the credit discrepancy that is hindering your credit score.

Late payments will adversely affect your credit rating. Another critical factor is maintaining a limited balance on revolving accounts like credit cards. It is also better to pay off debt rather than shifting your balances from credit card to credit card. The experts suggest not closing unused cards, because if your debt isn't reduced, less accounts open can also reduce your credit score.

Fortunately there have been recent changes reduce the negative association from rate shopping for mortgage consumers. Consumer generated inquiries within the past 365 days from mortgage loan or auto finance related industries are ignored for credit scoring purposes for the 1st 30 calendar days. After that multiple inquiries within the next 2 weeks are only counted as one. All inquiries still appear on the credit report, but the impact for inquiries has changed significantly.