Key Takeaways
- Most lenders look for a minimum credit score between 620 and 680 for a HELOC, though some will go lower if you have strong equity or income
- Scores of 700 or higher unlock the best rates, and even a small rate difference adds up over time
- Credit score is only part of the picture. Your home equity, debt-to-income ratio, and income stability all factor into approval
Your credit score plays a major role in whether you’ll qualify for a HELOC, and what interest rate you’ll pay if you do. Most lenders set their minimum somewhere between 620 and 680, though the exact cutoff varies more than you might expect.
Below, we’ll break down the credit score ranges lenders look for, how your score affects your rate, what to do if your credit is on the lower end, and the other qualification factors that matter just as much.
In this article (Skip to...)
- Minimum credit score required for a HELOC
- How your credit score affects HELOC interest rates
- Can you get a HELOC with bad credit
- How to qualify for a HELOC with a lower credit score
- What to do if your HELOC application is denied
- Alternatives to a HELOC for lower credit scores
- How to find the right HELOC lender for your credit profile
- FAQs about HELOC credit score requirements
Minimum credit score required for a HELOC
The minimum credit score for a HELOC is generally 620, though many lenders prefer to see 660 to 680 or higher. If you’re not familiar with the term, a HELOC (home equity line of credit) is a revolving credit line secured by your home—think of it like a credit card, but backed by your property instead of just your promise to repay.
Now, here’s the thing: there’s no single industry-wide cutoff. Each lender sets its own rules. But after looking at what major banks, credit unions, and online lenders require, a clear pattern emerges.
Most lenders require a 620 to 680 FICO score
So where do you stand?
According to Experian, borrowers typically need at least a 680 FICO score to qualify, though some lenders prefer 720 or higher for their best offers.
Why some lenders set higher credit score minimums
Here’s why lenders can be picky: a HELOC is a second-lien loan. That means if you default and your home is sold, your primary mortgage gets paid first. The HELOC lender is second in line and might not get fully repaid.
Because of that added risk, many lenders use credit score as a quick way to filter out riskier borrowers. Credit unions often show more flexibility with members they know well, while big banks tend to stick to stricter cutoffs. Online lenders? They’re all over the map—some specialize in lower-score borrowers, others only want prime applicants.
Preserve a low rate first mortgage
If you locked in a mortgage rate below 4% back in 2020 or 2021, refinancing to access equity means giving up that rate entirely. A HELOC sits behind your existing mortgage as a second lien, leaving your favorable first mortgage untouched.
This matters more than it might seem. On a $500,000 loan, the difference between 3.5% and 7% adds up to roughly $1,000 per month.
Potential tax advantages for home improvements
Interest paid on a HELOC may be tax-deductible when you use the funds for substantial improvements to the home securing the loan. The IRS allows this deduction on loan amounts up to $750,000 combined with your first mortgage. A tax professional can confirm whether your specific situation qualifies.
How your credit score affects HELOC interest rates
Your credit score doesn’t just determine whether you get approved—it directly shapes the interest rate you’ll pay. And with HELOCs, even small rate differences matter because you’re borrowing against your home over many years.
Credit score tiers and typical APR ranges
| Credit Score Range | Rate Category | Approval Likelihood |
| 780+ | Lowest rates | Excellent |
| 700–779 | Competitive rates | Strong |
| 680–699 | Moderate rates | Good |
| 620–679 | Higher rates | May require compensating factors |
| Below 620 | Limited options | Difficult |
Lenders use what’s called risk-based pricing. In plain terms: the higher your score, the lower your rate. If you fall in the 620–679 range, you can still qualify—but expect to pay more for the privilege.
Why a higher score saves you money over time
Let’s put some numbers to it. On a $50,000 HELOC balance, a 1% rate difference means roughly $500 more in interest each year. Over a 10-year draw period, that’s $5,000 that could have stayed in your pocket.
Can you get a HELOC with bad credit
Getting approved with bad credit is harder, but it’s not impossible. In the world of home equity lending, “bad credit” usually means a score below 620—though some lenders consider anything under 660 to be subprime.
Lenders that accept lower credit scores
Not all lenders have the same appetite for risk. Some are more willing to work with borrowers who have lower scores:
- Credit unions: Often more flexible, especially if you’re an established member with a history there
- Portfolio lenders: Lenders that keep loans on their own books (rather than selling them) can bend their own rules
- Online lenders: A mixed bag—some target lower-score borrowers, others don’t, so shopping around is key
Trade-offs of borrowing with a lower score
If you do qualify with a lower score, expect some trade-offs:
- Higher interest rates: You’ll pay more for the credit line compared to borrowers with stronger scores
- Lower credit limits: Lenders may cap how much you can borrow to limit their exposure
- More equity required: You might need a lower combined loan-to-value ratio to offset your credit risk
- Extra documentation: Lenders may want more proof of income, assets, and job stability
How to qualify for a HELOC with a lower credit score
If your score is borderline, there are practical steps you can take to improve your odds—or at least get better terms.
1. Check your credit reports for errors
Mistakes on credit reports are surprisingly common. Disputing inaccuracies with the credit bureaus can sometimes boost your score quickly. You can pull free annual reports from all three bureaus at AnnualCreditReport.com.
2. Pay down revolving debt
Your credit utilization ratio—how much of your available credit you’re using—has a big impact on your score. Paying down credit card balances can improve your score within one to two billing cycles.
3. Avoid opening new credit accounts
New credit inquiries and accounts can temporarily lower your score. If you’re planning to apply for a HELOC soon, hold off on opening new credit cards or financing other purchases until after you’re approved.
4. Consider adding a co-borrower
A co-borrower with stronger credit may help you qualify or secure better terms. Just keep in mind that both of you become equally responsible for repayment.
5. Compare lenders with different credit requirements
Requirements vary a lot from lender to lender. Getting quotes from multiple sources—credit unions, banks, and online lenders—helps you find the best fit for your credit profile.
Compare HELOC rates from multiple lenders. Start here.
What to do if your HELOC application is denied
Denial is neither a river in Egypt nor the end of the road if you want a HELOC. Here’s how to move forward:
Compare home equity lenders now. Start here
Alternatives to a HELOC for lower credit scores
If a HELOC isn’t the right fit right now, other options may help you access funds.
Home equity loan
A home equity loan gives you a lump sum with a fixed interest rate and predictable monthly payments. Credit requirements are similar to HELOCs, but the fixed-rate structure appeals to borrowers who prefer knowing exactly what they’ll pay each month.
Cash-out refinance
A cash-out refinance replaces your existing mortgage with a larger one, giving you access to your equity as cash. Credit requirements may differ slightly, but this option means giving up your current mortgage rate—something to weigh carefully if you locked in a low rate a few years ago.
Personal loan
Personal loans are unsecured, meaning your home isn’t used as collateral. Rates are typically higher than home equity products, but there’s no risk of foreclosure if you can’t repay. Some lenders accept credit scores in the low 600s.
Verify your HELOC eligibility. Start here
How to find the right HELOC lender for your credit profile
The best way to find favorable HELOC terms—regardless of your credit score—is to compare offers from multiple lenders. Each lender weighs credit score, equity, and income differently, so shopping around often reveals better options than settling for the first quote you get.
Credit unions may offer more flexibility for members, while online lenders can provide quick pre-qualification without affecting your credit score. Banks often have competitive rates for borrowers with strong credit profiles.
Time to make a move? Let us find the right mortgage for you
FAQs about HELOC credit score requirements
A HELOC application triggers a hard inquiry, which may cause a small, temporary dip—typically 5 to 10 points. However, multiple HELOC inquiries within a short window (usually 14 to 45 days) are often counted as a single inquiry for scoring purposes. That means rate shopping within that timeframe minimizes the impact.
Most HELOC lenders use FICO scores, though the specific version varies by lender. Some may also consider VantageScore. The score you see from a free monitoring service may differ slightly from what lenders see, so expect some variation when you apply.
Once you've made credit improvements—like paying down debt or correcting errors—wait at least one full billing cycle for changes to appear on your credit report. For significant improvements, waiting two to three months often yields better results.
Credit score requirements are set by individual lenders rather than state law. However, lender availability and competition vary by location, which can affect your options. In areas with more lenders competing for business, you may find more flexibility on credit requirements.
