Can you use a home equity loan for something other than a home?
I need a loan & some people had suggested I look into this because of the lower interest rates, instead of using high interest (not to mention EVIL) credit cards. But it's not for a home & I don't have enough collateral for the amount I'd like to borrow. I have a fantastic credit score over 700, but also have student loans & other credit card debt, which I am very excellent at paying at, & make enough to make the payments comfortably. If I can't get a home equity loan, what kind of loan can I get, & at what amount & rate should I expect? I've looked around online, but all the bank terminology does nothing but confuse me, so anyone who could clarify this a small more "user friendly" would be helpful!
It's not for home improvement. Really, it's basically a business expense, but I'm not sure if a bank would consider this a business type of loan.
Oh, & one *minor* detail… I don't own a home 
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Tags: business expense, business type, collateral, credit card debt, Credit Cards, credit score, high interest, Home Equity, home equity loan, home improvement, interest rates, minor detail, student loansTags: business expense, business type, collateral, credit card debt, Credit Cards, credit score, high interest, home equity loan, home improvement, interest rates, minor detail, student loans
You can use the equity loan for anything. They will literally give you a check book and debit card in many cases. You are basically borrowing against the equity you have in your home. The interest you pay on this loan will be tax deductable and that is also what makes it more attractive than a credit card or personal loan. Be very carefull! Turning your home in to an ATM machine is what has gotten many people in distress and is what has caused the "credit crisis" that we are seeing right now. The stock market has plunged because of this and the negative effects on the economy are still being played out. I would only do this if it is necessary or if the loan will add value to your home. You may find yourself in a position where your home is worth less than your first mortgage and equity loan which means you will not be able to sell your home if you have a financial hardship and you may be forced to forclose like all those people out there…
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