You may have heard of a way to get cash in pocket in a short period of time through taking out a home equity loan. But, what if you need more cash than the average lender is willing to lend you. And, what if you have a bad credit score?If you are interested in taking out a bad credit 125% home equity loan, here are 3 tips on what it is and how you can qualify:1. What a 125% equity loan is:A home equity loan is simply a loan you take out while using the equity in your home as collateral. Banks and other lenders feel much more comfortable making a loan to someone – no matter what their credit score – if the loan has something backing it up. Of course, equity is just the total amount of your home you actually own (value minus amount owed).Traditionally, most lenders have not been willing to make a loan for more than 80% loan to value (80% LTV). This means that, for example, if your home is worth $100,000 on the market and the current outstanding mortgage principal is $70,000, the most the bank would be willing to lend in a home equity loan would be $10,000. That is because 80% of $100,000 is $80,000, and $80,000 – $70,000 = $10,000.However, some lenders today will actually extend a person a loan for up to 100% or 125% of the value of their home. This is riskier for the lender, but then again the lender also can charge a higher interest rate for this type of loan.2. How to qualify if you have bad credit:If you are interested in a home equity loan but have a bad credit score, you will not want to just approach any old lender you come across for your loan. Rather, you need to seek out “bad credit 125% home equity loan” lenders.3. What to do before you contact the bad credit equity lenders:Before applying with these lenders, however, it is important that you become very familiar with your Equifax, Experian and TransUnion credit reports. These reports hold your entire financial history, so you will want to go through them with a fine-tooth comb in order to determine if there are any items there that you will want to be able to explain if asked.Consider these 3 tips as you apply for a bad credit 125% home loan.