Answer: -If you have bad credit, you are less likely to be approved for a loan, or if you are approved, you may have to pay a higher interest rate.Part of the decision will be based on what % the $80k in equity is of the value of your home. If your home is worth $800k and you have $80k (10%) in equity and bad credit, you are unlikely to be approved for a home equity loan. On the other hand, if your home is worth $160k and you have $80k (50%) in equity and bad credit, there is a good chance that you will be approved for a loan.This is because the bank looks at how much they could realize from your house if they had to foreclose, and if you only have 10% equity, almost all of that could be eaten up by foreclosure costs, so the bank would lose money if they loaned you the $80k and then had to foreclose. -Not sure... it depends on how bad your credit is. You may just get a higher interest rate. If you're current on all your bills now, and have been for the past couple years, you can ask your bank if they will approve you without using your credit score. -You may get the loan, but the rate would be higher than someone with good credit. I'd be very cautious about using your home to borrow on.... generally not a good idea... most people do it to pay off debt, like credit cards... but will find themselves back in the same debt again (now with a home equity loan too) because they did not change the habits that caused the problems in the first place. -The bank is interested in your ability to repay the loan. The home acts as security for the loan, but the bank does not want to take your home if you don't repay.If you approach the bank, explain why you need the loan. If it is to repay other debts so that you pay less interest and make one payment to a bank rather than on many credit cards with higher interest, the bank will probably help you. If you want the loan to take a vacation while you are repaying credit cards whose balances will increase as you squander the bank's money, it will not be especially interested. The bank will look to your sources of income and debt repayment history and ability. You determine your own credit rating by your spending and debt payment habits. You have to live with the credit rating you have developed for yourself .