What Credit Score Do You Need for a HELOC? (2026 Requirements)
Last updated 04/17/2026 by
Ante Mazalin
Edited by
Andrew Latham
Summary:
Most lenders require a minimum credit score of 620 to qualify for a HELOC, with the best rates and highest credit limits reserved for borrowers at 680 or above.
Your score is one factor — available equity and debt-to-income ratio carry equal weight.
- 620–679: Minimum threshold for most HELOC lenders — approval is possible but expect higher rates and lower credit limits.
- 680–719: Standard approval range; most lenders proceed without added conditions at competitive rates.
- 720+: Best rate tiers and highest approval odds; some lenders unlock combined LTV limits above 85%.
- Below 620: Most HELOC lenders decline; a home equity loan may be accessible through specialty lenders, but options are limited.
A HELOC lets you borrow against your home’s equity as a revolving line of credit — similar to a credit card, but secured by your property. That collateral is why lenders can approve lower scores than they would for unsecured products, but it also raises the stakes: your home is on the line if you default.
Here’s what the real approval thresholds look like, how lenders weigh equity against your score, and what to do if your credit falls short.
Compare Home Equity Lines of Credit
Compare rates from multiple HELOC lenders. Discover your lowest eligible rate.
What credit score do you need for a HELOC?
HELOC credit requirements vary more than most loan products because lenders set their own minimums within broad market norms. The table below reflects realistic approval outcomes across most major lenders.
| Credit Score | Approval Likelihood | Rate Expectation | Max CLTV Typically Offered |
|---|---|---|---|
| 740+ (Very Good) | Very high | Best available rate tier | Up to 90% CLTV at some lenders |
| 700–739 (Good) | High | Competitive; near best rate tier | 85% CLTV standard |
| 680–699 (Good) | Moderate–High | Standard rates; some lender variation | 80–85% CLTV typical |
| 640–679 (Fair) | Moderate | Higher rates; limited lender options | 80% CLTV or lower |
| 620–639 (Fair) | Low–Moderate | Highest rates; may require more equity | 75–80% CLTV typical |
| Below 620 | Very low | Most lenders decline | N/A for most lenders |
CLTV — combined loan-to-value ratio — measures your total mortgage debt plus the HELOC against your home’s current appraised value. A lender allowing 85% CLTV on a $400,000 home with a $280,000 mortgage balance would extend a HELOC of up to $60,000 ($400,000 × 85% = $340,000 − $280,000 = $60,000).
HELOC vs. home equity loan — credit requirements compared
Both products tap your home equity, but they work differently and carry slightly different credit requirements.
| Feature | HELOC | Home Equity Loan |
|---|---|---|
| Minimum credit score (typical) | 620 | 620 |
| Rate type | Variable (tied to prime rate) | Fixed |
| Disbursement | Revolving line — draw as needed | Lump sum at closing |
| Best for | Ongoing expenses, renovations over time | One-time large expense |
| Bad credit options | Limited specialty lenders at 580–619 | More specialty lenders available |
If your score is below 620, a home equity loan with bad credit is more accessible than a HELOC at that range — a fixed lump-sum product carries less ongoing risk for lenders than an open revolving line.
What HELOC lenders evaluate beyond your credit score
Credit score is the entry point, but three other factors determine how much you can borrow and at what rate. See the full list of HELOC and home equity loan requirements for lender-specific criteria.
- Available equity: Most lenders require at least 15–20% equity remaining after the HELOC is added — meaning your CLTV can’t exceed 80–85%. More equity gives you a larger credit line and better negotiating position on rate.
- Debt-to-income ratio (DTI): Most HELOC lenders cap DTI at 43%, though some allow up to 50% with compensating factors. Your DTI includes your existing mortgage payment plus the new HELOC payment at full draw.
- Home appraisal: Lenders order an appraisal to confirm current market value before approving a HELOC. If your home has declined in value since purchase, available equity shrinks accordingly.
- Payment history on existing mortgage: A late mortgage payment in the past 12 months is a common reason for HELOC declines even for borrowers above the minimum credit score threshold.
- Employment and income stability: Two years of stable income is the standard expectation. Lenders calculate your qualifying payment based on the full draw amount, not your anticipated average balance.
Pro Tip: HELOC rates are variable and tied to the prime rate — when the Fed raises rates, your HELOC payment rises too. Before applying, calculate what your monthly payment looks like if the rate increases by 2–3 percentage points from where it is today. If that payment strains your DTI, a fixed-rate home equity loan may be the safer structure.
How a HELOC affects your credit score
Opening a HELOC has several credit score implications worth understanding before you apply.
At application, a hard inquiry is triggered — typically a 5-point temporary drop. Once open, a HELOC adds a new revolving account to your file. Unlike credit cards, HELOC utilization is typically not factored into your overall revolving utilization ratio by all scoring models — but high HELOC balances can still signal risk to lenders reviewing your full file manually.
For a detailed breakdown of the ongoing scoring impact, see how a HELOC affects your credit score across the application, draw, and repayment phases.
How to qualify for a HELOC with lower credit
If your score falls below 680, these steps improve your position before applying — or help you find an approval path that most borrowers miss.
- Calculate your actual available equity first. Order a free automated valuation estimate or pay for a pre-appraisal before approaching lenders. If your CLTV is already above 80%, even a strong credit score won’t unlock a HELOC — equity is the non-negotiable constraint.
- Pay down revolving balances to lower your DTI. HELOC lenders calculate your qualifying payment at full draw — if adding a $50,000 HELOC payment pushes your DTI above 43%, pay down installment debt to create room before applying.
- Avoid late mortgage payments in the 12 months before applying. On-time mortgage history is weighted heavily by HELOC underwriters. A single late payment in the recent past can trigger a decline regardless of your credit score.
- Shop credit unions and community banks specifically. Large national banks typically require 680+. Credit unions and community lenders are more likely to approve at 620–640 and often offer lower rates to members. See strategies for qualifying for a HELOC with bad credit for lender-specific guidance.
- Apply within a 14-day window across multiple lenders. Multiple HELOC hard inquiries within 14 days count as one inquiry for FICO scoring purposes. Use this window to get competing offers without additional score damage.
Frequently asked questions
What is the minimum credit score for a HELOC?
Most lenders require a minimum score of 620. Some credit unions and specialty lenders will go as low as 580, but at that level expect higher rates, lower credit limits, and more restrictive CLTV caps. The practical threshold for a competitive HELOC — reasonable rate, 85% CLTV, minimal conditions — is 680 or above.
Can you get a HELOC with a 600 credit score?
Rarely through mainstream lenders. A 600 score falls below the 620 minimum most HELOC lenders require. Credit unions and portfolio lenders occasionally approve in this range with significant equity (CLTV below 75%) and strong income documentation. A fixed-rate home equity loan may be a more accessible path at this score.
How much equity do you need for a HELOC?
Most lenders require at least 15–20% equity remaining after the HELOC — meaning your total mortgage debt plus the HELOC can’t exceed 80–85% of your home’s appraised value. On a $400,000 home, you’d need your existing mortgage balance to be $340,000 or less to access any HELOC at all (assuming an 85% CLTV cap).
Does a HELOC hurt your credit score?
Slightly, temporarily, at application — a hard inquiry typically drops your score by 5 points or fewer. Long-term, a HELOC adds a revolving tradeline and extends your credit mix, both of which can help your score if managed well. Late HELOC payments are reported to all three bureaus and carry the same negative weight as any other missed payment.
Is a HELOC or home equity loan better for someone with bad credit?
A home equity loan is typically more accessible for borrowers with lower credit. Its fixed structure and lump-sum disbursement carry less ongoing risk for lenders than an open revolving line — making specialty lenders more likely to approve it at scores between 580 and 619 where most HELOC lenders won’t go.
Key takeaways
- Most HELOC lenders require a minimum score of 620; the best rates and highest CLTV limits start at 680–720.
- Available equity is as important as credit score — you need at least 15–20% equity remaining after the HELOC to qualify at all.
- HELOC rates are variable; calculate your payment at +2–3% before committing to ensure it remains manageable if rates rise.
- Late mortgage payments in the past 12 months are a frequent HELOC decline trigger, even for borrowers above the score minimum.
- Multiple HELOC applications within 14 days count as one hard inquiry — always shop at least three lenders.
- Borrowers below 620 should consider a fixed-rate home equity loan as a more accessible alternative to a HELOC.
Ready to compare HELOC lenders and current rates? See options at SuperMoney’s HELOC comparison.
Share this post:
Table of Contents