Bad Credit Refinance
There are many bad credit mortgage refinance options for borrowers. The refinancing option that you'll be looking for if you want to eliminate some of your high interest credit card debt is the cash out refinance. Similar to a debt consolidation loan, a cash out refinance will allow you to pull cash out from the equity you have in your home and use it for anything you want. You may want to use the cash for a new boat or a great vacation. We all probably would.

However, a more effective use of the cash from a mortgage refinance would be to pay off all outstanding high interest debts, such as credit cards, car loans, and store charge cards. You'll be able to get all the advantages of a debt consolidation loan, such as having one convenient monthly payment that is much lower than the total of your current credit card and loan payments. The difference is that a cash out refinance will offer you greater flexibility. The money is yours to do with as you need to. If you just want to refinance to get out of a bad ARM before it resets, you can just refinance the ARM into a fixed rate mortgage product at a lower interest rate. This is important and could save you from foreclosure, a tragic credit mistake.

What if, like so many people, you've already gotten yourself into a situation where your credit is less than perfect. Maybe you even have pretty bad credit. If your FICO credit score is less than 680, you now fall into the subprime borrower category. If you've got just a bit less than a 700 FICO score, you're in kind of a grey area. In the past, many mortgage companies would treat you as if you had good credit in order to get your business, but other lenders would treat you as a subprime borrower. Now there are far fewer that will accept sub-prime business, but you can still get a refinance at a lower, fixed interest rate, in most cases.

source : wikipedia