Most lenders require a credit score of 620 or higher, but 700+ gives you better rates
The minimum credit score for a home equity line of credit (HELOC) varies by lender, but most will not work with you below 620. However, a score in that range typically means higher interest rates and stricter terms. If your score is 700 or above, you will see significantly better offers. Some lenders specialise in lower-score borrowers and may go down to 600, but these come with costs — higher rates, lower credit limits, or both.
Your credit score is not the only factor lenders look at. They also check your debt-to-income ratio (how much you owe compared to what you earn), your home's equity, and your payment history on existing debts. A strong score can sometimes offset a weaker ratio, and vice versa. If your score is below 620, improving it before you apply — or waiting to apply — often saves you thousands in interest over the life of the line.
Key Takeaways
- Most HELOC lenders require a credit score of at least 620, though 700 or higher qualifies you for better rates and terms.
- Your debt-to-income ratio and home equity matter as much as your score; lenders want to see that you can afford the payments and have real equity to borrow against.
- If your score is below 620, you may still find lenders willing to work with you, but expect higher interest rates and lower credit limits.
- Checking your credit report for errors and disputing inaccuracies can raise your score before you apply, sometimes by 20 to 50 points.
How lenders use your credit score in a HELOC decision
Your credit score tells a lender how reliably you have paid debts in the past. A HELOC is secured by your home, which means the lender can foreclose if you stop paying. Even so, they still want evidence that you pay on time. A score of 620 to 659 signals higher risk; lenders may approve you but charge a higher interest rate to offset that risk. A score of 660 to 699 is considered fair; most mainstream lenders will work with you, though you will not get their best rates. A score of 700 to 749 is good, and 750+ is excellent — at this level you may have access to for the lowest rates available.
The score itself is calculated from five categories: payment history (35 percent of your score), amounts owed (30 percent), length of credit history (15 percent), credit mix (10 percent), and new credit inquiries (10 percent). A HELOC lender will look at all five, but they focus hardest on payment history. If you have missed payments in the last two years, even one or two, your score will reflect that and lenders will hesitate. If your missed payments are older than two years, their weight on your score decreases over time.
Debt-to-income ratio and why it matters as much as your score
Your debt-to-income ratio (DTI) is the total of all your monthly debt payments divided by your gross monthly income. Most HELOC lenders want to see a DTI of 43 percent or lower, though some will go to 50 percent. If you earn $5,000 a month and your car payment, student loans, credit cards, and mortgage add up to $2,000 a month, your DTI is 40 percent — acceptable to most lenders.
A HELOC adds a new debt payment to your ratio. Lenders calculate what your DTI would be if you drew the full credit limit and made minimum payments on it. If that projected ratio exceeds their threshold, they will either deny you or offer a lower credit limit. This is why two people with identical credit scores can receive very different HELOC offers: one may have low existing debt and may have access to for a large line at a good rate, while the other carries high debt and gets a smaller line at a higher rate, or no offer at all.
Home equity and how much you can borrow
Lenders will not lend you more than a percentage of your home's equity. Equity is the difference between what your home is worth and what you owe on your mortgage. If your home is worth $300,000 and you owe $200,000, you have $100,000 in equity. Most lenders will let you borrow up to 80 or 85 percent of that equity, minus what you still owe on your first mortgage. So in this example, you might be able to borrow $60,000 to $80,000 depending on the lender.
Some lenders require a minimum amount of equity — often $15,000 to $20,000 — before they will even consider you. If your home has appreciated recently but you have not had it reappraised, you may have more equity than you think. Getting a new appraisal costs $300 to $500 but can unlock a larger credit line. Conversely, if your home's value has dropped or you owe close to what it is worth, you may not have enough equity to may have access to, regardless of your credit score.
What happens if your credit score is below 620
A score below 620 does not automatically disqualify you, but it narrows your options. Some credit unions and online lenders will work with scores as low as 600, and a few will go lower if you have significant home equity or a co-borrower with a stronger score. However, the cost is real: interest rates for borrowers with scores below 620 are typically 1 to 3 percentage points higher than for those with scores above 700. Over a 10-year HELOC, that difference can amount to tens of thousands of dollars.
If your score is below 620, you have two realistic paths. The first is to wait and improve your score before applying. Paying down existing credit card balances, making all payments on time for six months, and disputing any errors on your credit report can raise your score 20 to 50 points or more. The second is to apply now with a lender that accepts lower scores, knowing you will pay more, and then refinance to better terms once your score improves. Neither path is fast, but both are more cost-effective than borrowing at a high rate for years.
How to check your credit report for errors before applying
Your credit score is based on information in your credit report, which is maintained by three bureaus: Equifax, Experian, and TransUnion. Errors in that report — a missed payment you actually made, a debt listed twice, an account opened in your name fraudulently — will lower your score. You can request a free copy of your report from each bureau once per year at annualcreditreport.com, the official site run by the three bureaus together. Do not use other sites that offer "free" reports; many are scams or will sign you up for paid monitoring you did not want.
When you get your reports, look for accounts you do not recognise, payments marked as late that you made on time, and duplicate entries. If you find an error, contact the bureau in writing (email is often faster) and provide documentation — a cancelled check, a bank statement, a letter from the creditor. The bureau has 30 days to investigate and correct or remove the error. Disputing errors takes time but costs nothing and can meaningfully raise your score before you apply for a HELOC.
Interest rates and terms for different credit score ranges
HELOC interest rates are tied to the prime rate, which changes with the Federal Reserve's decisions. On top of that, lenders add a margin based on your credit score and other factors. The table below shows typical rate ranges, though actual rates vary by lender, location, and current market conditions.
| Credit Score Range | Typical Interest Rate Range | Typical Credit Limit |
|---|---|---|
| Below 620 | 8% to 12%+ | $10,000 to $50,000 |
| 620–659 | 7% to 9% | $25,000 to $100,000 |
| 660–699 | 6% to 8% | $50,000 to $200,000 |
| 700–749 | 5% to 7% | $75,000 to $300,000 |
| 750+ | 4.5% to 6.5% | $100,000 to $500,000+ |
These ranges are approximate and based on typical market conditions. Rates change frequently, and individual lenders set their own margins. A bank may offer a lower rate to customers with existing accounts or to those who set up automatic payments. An online lender may offer the same rate to all borrowers in a score range, with no discounts. Always get quotes from at least three lenders before deciding; the difference between a 6 percent rate and a 7 percent rate on a $100,000 line is roughly $1,000 per year in interest.
Frequently Asked Questions
Can I get a HELOC with a 580 credit score?
Most mainstream lenders will not work with a score that low, but some credit unions and online lenders specialising in lower-score borrowers may consider you if you have substantial home equity and a low debt-to-income ratio. Expect rates of 10 percent or higher and a credit limit well below what you might otherwise may have access to for. Improving your score to 620 or above before applying will give you far more options and better terms.
Does applying for a HELOC hurt my credit score?
Yes, but only slightly and temporarily. Each application triggers a hard inquiry, which lowers your score by a few points. Multiple applications within a short window (typically 14 to 45 days, depending on the scoring model) count as a single inquiry, so shopping around with several lenders in a week or two has less impact than spreading applications over months. The inquiry typically falls off your report after two years and stops affecting your score after one year.
What if my spouse has a much higher credit score than I do?
You can apply for a HELOC as a co-borrower with your spouse, and lenders will consider both scores. If one of you has a score above 700 and the other is below 620, the stronger score can help offset the weaker one. However, both of you will be responsible for repaying the line, and both will be liable if the debt goes unpaid. Make sure you both understand the terms before signing.
How long does it take to improve my credit score enough to may have access to?
It depends on what is dragging your score down. Paying off a credit card balance can raise your score within one or two billing cycles (30 to 60 days). Disputing an error can take 30 to 45 days. A missed payment stops affecting your score significantly after two years, though it stays on your report for seven years. If your score is 580 and you want to reach 650, expect three to six months of on-time payments and lower balances.
Do different HELOC lenders have different minimum credit score requirements?
Yes. Banks typically require 680 to 700 minimum. Credit unions often go lower, sometimes to 620 or 600. Online lenders vary widely; some require 700+, others will work with 600. Calling or checking the lender's website before applying tells you whether you meet their minimum. This saves you from hard inquiries that lower your score if you do not may have access to.