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The underwriting process for a home equity loan is similar to that of a first lien mortgage, so you may not receive loan approval and funding for your home equity loan for a month or longer in many cases. People with bad credit may have a hard time qualifying for a home-equity loan because most lenders require at least 660-680 credit score.
What Is a Bad Credit Score? – Bad credit loans with very high interest rates may also be inadvisable, as the interest may be so high that you struggle to make payments and your credit only gets worse. You should also watch out for.