A bad credit home equity loan can help you get the cash you need if you are a homeowner struggling with a derogatory credit history. Most people experience overwhelming circumstances at some point in their life which can lead to financial problems and a poor credit rating. The good news is you can turn your situation around. If you have a high monthly debt load then a poor credit home equity loan can be your opportunity to take control of your finances by consolidating your high interest debt into one low manageable monthly payment. Bad credit home equity loans can also be used to make home improvements or to just get cash-out to be used as the homeowner sees fit.You can apply for a bad credit home equity loan from lenders who offer or specialize in sub-prime lending. Sub-prime lending is a segment of the mortgage industry that caters to people who have credit problems or high debt ratios which keep them from qualifying for conventional mortgage and home equity loans. Poor credit home equity loans have more lenient guidelines and allow for the following types of credit mishaps: late payments, repossession, bankruptcy, collections, high debt ratios and low credit score.A bad credit home equity loan, just like a traditional equity loan, is a second mortgage. This means the lender will secure the loan by placing a lien on your home. If you default on the loan you can lose your home. Before you sign on the dotted line be sure that you can afford the monthly payment. Just because you get approved for $50,000 does not mean you can comfortably afford the monthly payment that comes with it.Bad credit home equity loan rates will vary from lender to lender, but in general, poor credit loan rates are higher than the rates of standard conventional loans. Your credit score and/or the particular poor credit home equity loan program that you choose will determine the rate category that you fall in. Loan program types will also vary…some sub-prime lenders only offer fixed-rate closed end bad credit home equity loans while others may offer both a fixed-rate and an adjustable rate line of credit program. To increase your chances of getting the best possible deal for your particular situation you may want to shop around and compare quotes from several companies before making your final decision.