Need bad credit home loans or bad credit personal loans? Think twice about using your home as collateral. If you need money to pay bills or make home improvements and think the answer is in refinancing, a second mortgage, or a home equity loan - consider your options carefully. If you can't make the required payments you could lose your home as well as the equity you've built up.

It's important not to let anyone talk you into using your home to borrow money you may not be able to afford to pay back. Not all bad credit home loans or bad credit personal loans are created equal. Some unscrupulous lenders target older or low-income homeowners and those with bad credit problems. These lenders may offer bad credit home loans and bad credit personal loans based on the equity in your home not on your ability to repay the loan.

High interest rates and credit costs can make it very expensive to borrow money even if you use your home as collateral. Talk to an attorney, financial advisor, or someone else you trust before you make any decisions about borrowing money. Non-profit bad credit and housing counseling services also can be useful in helping you manage your credit and make smart decisions about bad credit home loans and bad credit personal loans.

Early warning signs avoid any lender who: