So, you want to refinance, but your credit is less than perfect? Don't worry, all isn't lost. You have some options. You can still refinance to take advantage of the equity in your home for extra cash. You can consolidate debt, pay for home remodeling or just about anything else with the extra cash. It could be used to get you on the path to financial independence. Remember, if you've got bad credit now, you can reclaim a good credit rating with just a little patience and prudence. If you're trying to be financially secure, whatever you do, don't use the cash from the refinance for frivolous purposes such as a vacation or new boat. You can leverage the equity in your home to achieve financial freedom through a cash out refinance, even if you've got bad credit.

Where can you start? First, you must collect all the necessary information. Pull a copy of your credit report. You get one free each year from each of the three major credit reporting agencies. Call 1-877-322-8228 for your report. That is a central request number for all three agencies. See if there are any inaccuracies on the report. One 2004 study found that over 25% of all credit reports contained errors. These credit report errors can be things like false accounts or delinquencies (25%), listing the same debt multiple times (22%), or paid off (closed) accounts that are still listed as open on the credit report (30%). Your credit may not be as bad as you think. Some of your negative credit history may be due to these errors. If you find any inaccuracies, correct them. This may take some time, but will be worth it. You'll improve your credit score and get a better rate on your refinance. It will take from 30