What Is the Minimum Credit Score Requirement for a HELOC?

If you’re considering tapping your home’s equity with a home equity line of credit (HELOC), your credit score will play a big role in whether you qualify and what rate you get. Most lenders look for a credit score between 620 and 680, though the exact minimum depends on the lender and your overall financial picture.

Because a HELOC is a secured loan, lenders may be more flexible than they would be with unsecured products. Still, the stronger your credit score, the better your chances of approval and the lower your borrowing costs. Here’s what to expect across different credit tiers, what else lenders consider, and how to prepare if your score needs work.

Table of Contents

1. What credit score do you need for a HELOC?
2. Typical HELOC credit score ranges: 620, 660, 700, and up
3. How credit score affects rates and terms
4. What other factors matter?
5. Can you get a HELOC with bad credit (below 580)?
6. Why you should aim for more than the minimum score (700+)
7. What to do if your credit score is too low (below 620)
8. HELOC lenders and minimum credit scores

What credit score do you need for a HELOC?

The minimum credit score for a home equity line of credit (HELOC) typically falls between 620 and 680, depending on the lender. Because a HELOC is secured by your home, lenders can recover losses through the property if you default, making them more open to approving borrowers with fair credit than they would for unsecured loans.

That said, your credit score still matters a great deal. A higher score can help you qualify for lower interest rates, higher credit limits, and reduced fees, while a lower score can limit how much you can borrow or increase your costs.

A HELOC gives you flexibility, but that flexibility can become risky if you’re not financially stable. Strive to strengthen your credit before applying so you can borrow under terms that support, not strain, your finances.

Typical HELOC credit score ranges: 620, 660, 700, and up

Here’s how your credit score might affect your eligibility and loan terms:

Note: These ranges reflect how lenders commonly view HELOC applicants, which can differ slightly from traditional FICO categories.

For reference, FICO generally defines:

• Poor credit: below 579
• Fair credit: 580 – 669
• Good credit: 670 – 799
• Excellent credit: 800 – 850

In other words, a score that’s considered “fair” under FICO might still be strong enough to qualify for a HELOC, especially if you have solid income and home equity.

How credit score affects HELOC rates and terms

Even small differences in your credit score can have a big impact on borrowing costs. Lenders use your score to determine both your interest rate and your credit limit.

Borrowers with high scores usually receive:

• Lower variable interest rates
• Higher borrowing limits
• Lower fees
• More flexible repayment terms

Those with lower scores can expect higher rates and fewer options. Improving your credit before applying, sometimes by as little as 20 to 40 points, can make a noticeable difference in what you’ll pay over time.

What factors do lenders consider besides credit score?

While your credit score is important, lenders also evaluate several other factors to assess your ability to repay:

• Home equity and loan-to-value ratio (LTV): Most lenders let you borrow up to 80% – 90% of your home’s value, including your mortgage balance.
• Debt-to-income ratio (DTI): A DTI below 43% is typically preferred.
• Income and employment stability: Consistent income shows reliability.
• Payment history: On-time payments indicate you’re a responsible borrower.

Because your home is collateral, lenders will still be cautious, even if the loan is secured. The more you can show financial stability, the better your approval odds.

Can you get a HELOC with bad credit (below 580)?

Our research tells us the answer is no.

Bad credit (defined as a FICO score below 580) is too low to qualify for a HELOC in almost every case. While some lenders claim to offer HELOCs to borrowers with fair or poor credit, our research shows that most won’t approve applicants with scores below 620. In practice, the majority of approvals go to borrowers with scores of 720 or higher.

If a lender or other source tells you otherwise, be cautious. Because HELOCs are secured by your home, lenders take extra care to ensure you can repay the balance and protect the collateral behind the loan.

If your credit score is below 620, it’s usually best to:

• Focus on improving your credit before applying.
• Explore a home equity agreement (HEA), which lets you tap into your equity without monthly payments or a credit score requirement.

Why you should aim for more than the minimum score (700+)

A 620 score might get you in the door, but higher credit means lower risk (and lower costs). For example, borrowers with excellent credit may qualify for interest rates several percentage points lower than those with fair credit, which could save thousands over the life of the credit line.

Striving for a higher score can help you:

• Lock in lower rates and payments
• Access a larger credit limit
• Reduce overall borrowing risk
• Protect your home from potential default

What to do if your credit score is too low (below 620)

If your credit score is below a lender’s cutoff, it may be worth taking a few months to strengthen your credit profile. Steps include:

• Pay all bills on time
• Pay down revolving debt to below 30% of your limits
• Avoid opening new credit accounts too quickly
• Check your credit report for errors and dispute them

If you need to access your equity sooner, consider a home equity agreement (HEA), also called a home equity investment. These products allow you to receive a lump-sum payout in exchange for a share of your home’s future value without monthly payments or stringent credit score requirements.

HELOC lenders and minimum credit scores

Here’s more about our top HELOC lenders and their rates, funding amounts, terms, and credit score requirements:

Bottom line

Most lenders require a credit score between 620 and 680 to qualify for a HELOC, though stronger credit can open the door to better rates, higher limits, and lower costs.

If your score isn’t there yet, take time to build it before applying, or explore home equity agreements as a credit-free way to unlock your home’s value safely.