Home Equity Loan

What damage am I doing if I apply for a loan the second time.?

I applied for a busines loan line of credit and was turned down due to to many over drafts. I need to purchase a company vehicle and do some home repairs so I was thinking of appling for a home equity loan at a different bank where I have a my personal account. Am I making things worst or am I still safe in appling for a loan the second time this is within 2 weeks?

Public Comments

1. Each time you get turned down for a loan, your credit rating goes down and will make it even harder for you to get a loan. Within two weeks, i doubt the outcome will change. Though, if you apply for a business loan and then apply for a pesonal loan, it might be a shot.. but a long one! Clean up your over drafts. Don't do anymore for 6 months, and then try again. Keep your bills paid on time for 6 moths. Though, a long history of such things will always hinder you. Sounds like owing more money woulnd't be wise or the adult thing to do. If you can't afford what you have now, how do you intend to pay for a loan. Espcially in a market where the economy is in this state, it will be even harder to prove that within two weeks you became good with your money.
2. yes you are yet making another mistake of your life, that you will be paying off in the years to come.... if you can still bear your condition and will do away, not having to take a bank loan - then don't. Just think of how much of your money is being given away to the banks - for the interest and all other charges... Been there, and it's a no-brainer question for me. The answer is "NO", you shouldn't take a loan.
3. If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determine<!--the monthly payment you will need to make. You also need to know if the interest rate is of a fixed or adjustable nature. Fixed rate implies that the monthly payments will remain constant, while an adjustable rate implies that rates will fluctuate depending on market conditions. http://best-loans.awardspace.com/homeloans.htm In adjustable rate, when will rates change? If your interest rate on the home equity loan is of the adjustable variety, you need to know three things: when the rate is going to change (that is under what conditions), how frequently will the rate change and what’s the average-->percentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.