Most lenders want a credit score of 620 or higher, but the real requirement depends on the lender and your other finances
There is no single credit score requirement for a home equity line of credit. Banks and credit unions set their own minimums, and most fall between 620 and 680. Some will lend to people with scores in the 600s if you have substantial equity in your home and a steady income. Others require 700 or above. The score matters, but it is not the only thing lenders look at — your debt-to-income ratio, the amount of equity you have, and your payment history on existing debts all factor into the decision.
If your score is below 620, most mainstream lenders will turn you down. If it is between 620 and 680, you have options, but you may pay a higher interest rate or be asked to put down a larger cash deposit. If it is 680 or above, you are in the range where most lenders will at least consider you, though approval is never may provide.
Key Takeaways
- Most lenders require a credit score between 620 and 680, though some will go lower if you have significant home equity and stable income.
- Your credit score is one factor among several — lenders also look at how much equity you have, your debt-to-income ratio, and your payment history.
- Scores below 620 are difficult to work with at traditional banks and credit unions; scores above 700 generally open more options and better rates.
- The interest rate you receive often depends on your credit score, so a higher score can save you money over the life of the line.
How lenders use your credit score in the HELOC decision
Your credit score is a shorthand for how you have handled debt in the past. Lenders use it to estimate the risk that you will not pay them back. A higher score suggests you have paid bills on time, kept credit card balances low, and not taken on too much debt at once. A lower score suggests missed payments, high balances, or recent defaults.
When you apply for a HELOC, the lender pulls your credit report and score, then uses that score as a starting point. If your score is below their minimum, the application stops there. If it meets their minimum, they move on to check your income, employment history, and how much equity you have in the home. They also look at the specific reasons your score is what it is — a score of 650 caused by one missed payment five years ago looks different to a lender than a score of 650 caused by maxed-out credit cards right now.
Credit score ranges and what they mean for HELOC approval
Different lenders draw their lines in different places, but these ranges describe what most of the market does:
| Credit Score Range | What to Expect |
|---|---|
| Below 620 | Most mainstream lenders will decline. Some credit unions or online lenders may consider you, but rates will be high and terms strict. |
| 620–679 | You are in the range where approval is possible. Rates will be higher than for borrowers with better scores. You may be asked to provide more documentation or have a smaller credit line. |
| 680–719 | You are competitive. Most lenders will consider you. Rates will be closer to their standard offers, though not their best. |
| 720 and above | You may have access to for the best rates and terms most lenders offer. You have the most negotiating power. |
Keep in mind that these are general ranges. A credit union may have a 640 minimum while a national bank has a 700 minimum. An online lender may focus more on your equity and income than your score. The only way to know what a specific lender will do is to ask or submit an application.
What else lenders look at besides your credit score
Your credit score is important, but it is not the whole story. Lenders also examine your debt-to-income ratio — the percentage of your monthly income that goes to debt payments. Most want to see this below 43 percent. If you earn $5,000 a month and already owe $2,000 a month in car loans, mortgage, and credit card minimums, your ratio is 40 percent. Adding a HELOC payment might push you over that threshold, and the lender may decline or offer you a smaller line.
Home equity is another major factor. If you own a home worth $300,000 and owe $250,000 on the mortgage, you have $50,000 in equity. Most lenders will let you borrow up to 80 or 85 percent of your home's value, minus what you owe. So in this example, you could borrow roughly $40,000 to $45,000. A lender is more willing to work with a lower credit score if you have substantial equity, because the home itself is collateral — if you do not pay, they can foreclose and recover their money.
Employment and income stability matter too. A lender wants to see that you have held your job for at least two years and that your income is steady or growing. If you recently changed jobs or are self-employed, you may be asked to provide tax returns or bank statements to prove your income is real and consistent.
How your credit score affects the interest rate you pay
Even if two people both get approved for a HELOC, they may not pay the same interest rate. The person with a 750 credit score might get a rate of 8.5 percent, while the person with a 650 score might get 9.5 percent. Over time, that one percentage point difference adds up. On a $50,000 line, the higher rate costs you roughly $500 more per year in interest.
This is why improving your credit score before you apply can save you real money. If you can raise your score from 640 to 680 before applying, you may may have access to for a lower rate, which means lower payments and less total interest paid over the life of the line. Even a small improvement in your score can move you into a better rate tier.
Steps to take if your credit score is below the lender's minimum
If your score is too low right now, you have options. The fastest is to shop around — different lenders have different minimums, and a credit union or online lender may accept a score that a bank will not. You can also ask the lender what specific issues are dragging your score down and whether fixing them would change their decision. If you have a recent missed payment or high credit card balance, paying that down or catching up on the missed payment can raise your score within weeks or months.
Another approach is to wait. Credit scores improve over time as old negative marks age and recent positive payment history accumulates. A missed payment from seven years ago has much less impact than one from last month. If you can wait six months to a year and focus on paying all bills on time and keeping credit card balances low, your score will likely improve enough to may have access to.
You can also work on your other financial profile while your score recovers. Paying down existing debt lowers your debt-to-income ratio and makes you more attractive to lenders, even if your score has not changed. Staying in your job and building a longer employment history also helps.
How to check your credit score before applying
You are may have access to to one free credit report per year from each of the three major credit bureaus — Equifax, Experian, and TransUnion. You can order all three at annualcreditreport.com, which is the official site run by the bureaus themselves. The report shows your payment history and debts, but does not include your credit score.
To see your actual score, you can use free tools offered by credit card companies, banks, or websites like Credit Karma or NerdWallet. These scores are usually accurate enough to give you a sense of where you stand, though the exact number may differ slightly from the score a lender sees. The score a lender sees depends on which bureau they pull from and which scoring model they use — there are multiple versions of credit scores, and they do not all produce the same number.
Before you apply for a HELOC, check your score and your credit report. Look for errors — if something on your report is wrong, you can dispute it with the bureau and have it removed or corrected. Even small errors can drag down your score. Also look for accounts you do not recognize or signs of fraud. If you spot something wrong, fix it before you apply.
Frequently Asked Questions
Can I get a HELOC with a credit score below 600?
Most mainstream lenders will not work with scores below 620. Some credit unions, online lenders, or private lenders may consider lower scores, but rates will be significantly higher and terms will be stricter. You may also be required to have substantial home equity or a co-signer. It is worth calling a few credit unions in your area to ask their minimum.
Does a hard inquiry for a HELOC hurt my credit score?
Yes, when a lender pulls your credit to review your application, it creates a hard inquiry that temporarily lowers your score by a few points. The impact is small and fades within a few months. However, if you apply to multiple lenders within a short window — say, two weeks — the inquiries may be counted as a single inquiry for scoring purposes, so the damage is limited.
What if I have a good score but was denied for a HELOC?
A good credit score does not may provide approval. Lenders also look at your debt-to-income ratio, home equity, employment history, and the reason for your score. You may have been denied because you do not have enough equity, your debt payments are too high relative to your income, or you recently changed jobs. Ask the lender why you were denied — they are required to tell you — and address that specific issue before applying elsewhere.
Will paying off debt improve my credit score before I apply?
Yes, paying down credit card balances lowers your credit utilization ratio, which is a major factor in your score. Paying off a collection account or catching up on a missed payment also helps. Changes may show up on your credit report within 30 to 45 days, though the full impact on your score may take longer.
Is the credit score requirement the same at all banks?
No. National banks often have higher minimums — sometimes 700 or above — while credit unions and online lenders may work with scores in the 620 to 680 range. Rates and terms also vary. It is worth calling three to five lenders to compare their minimums and offers before you apply.