HELOC Credit Score Requirements

In 2026, banks and home equity lenders continue to value stability and responsible credit behavior, specific HELOC credit requirements and eligibility factors shape who qualifies and on what terms. Understanding this lending criteria can improve your chances of approval—and help you qualify more favorable HELOC rates and borrowing power. The RefiGuide published this article to illustrate how to improve your credit score so you can qualify for a competitive HELOC line of credit that best meet your needs. We will reveal the current HELOC credit score requirements and how they impact your home equity line of credit application, based on our lender surveys.

What Is the Minimum Credit Score for HELOC in 2026?

The minimum credit score required for a Home Equity Line of Credit depends on the type of lender and the borrower’s financial profile.

For traditional or prime-rate HELOCs offered by banks and credit unions, most lenders require a minimum credit score of 660 to 700.

Borrowers with scores above 740 typically receive the most favorable interest rates and terms.

However, if you have lower credit, alternative financing options are available. Non-QM lenders may approve borrowers with credit scores as low as 620, especially if there are compensating factors like low loan-to-value (LTV), high cash reserves, or strong rental income. These HELOC loans may have slightly higher interest rates and fees due to increased risk.

For those with poor credit (below 600), hard money lenders may offer HELOC-solutions or equity-based credit lines. These typically rely more on the property’s value than the borrower’s credit score, often allowing credit scores as low as 500 or even no score at all. However, interest rates are significantly higher, and terms are short—often 1 to 3 years.

Choosing the right HELOC option depends on your credit score, equity, and financial goals. Always compare lenders to find the best fit. Potential borrowers are always asking us how much of a HELOC line amount they can get with their credit scores. Since a HELOC is a second mortgage, the credit score is very important to the bank or mortgage lender.

Home equity line of credit (HELOC) loans allow you to use the equity in your home for cash. A minimum HELOC credit score is required. It’s a secure loan where your home is the collateral. You can borrow money against the property based on your equity percentage.

However, the approval and the amount also depend on your credit score, among several other factors. In this article, you’ll learn about the minimum credit score for HELOCs. Let’s explore the possibility of getting a HELOC with bad credit scores as well. In this article, I will explain the details of how a HELOC works and the typical credit requirements you must meet to get approved for a home equity line of credit with a competitive rate.

Before we talk about the minimum HELOC credit score, it’s worth discussing why it’s a requirement in the first place. You may wonder why a credit score is necessary when your home’s equity is the basis of the line of credit.

The thing is that having a solid credit rating makes it easier for lenders to let you borrow money. Like other scenarios in which your creditworthiness plays a role, bad credit HELOC lenders also use your credit score to secure their interest.

A good credit score shows them that you’ll pay your dues on time and would likely not default. But your credit score’s importance doesn’t end there – it also helps determine the rate and terms. Generally, the higher the Fico-score you have, the easier it becomes to get the best available interest rates on the HELOC.

Again, it’s all about your creditworthiness– a higher credit score makes lending you money less risky, allowing lenders to give you a lower rate and higher HELOC credit limit.

What Are HELOC Credit Requirements Today?

After surveying some of the top HELOC lenders in the country, I discovered that the minimum credit score for HELOC is 680 with most banks and conventional mortgage lenders. That said, you’re likely to get an easy and quick approval if your credit score is 700+.

Some HELOC lenders may lend money in a home equity line of credit to individuals with a credit score of 620 or above. However, in such cases, you can expect a relatively higher rate.

Also, the requirement typically does not allow for wiggle room, which means the minimum score is necessary even for initiating the process. If you have a lower credit score, you still may be able to qualify for a HELOC with bad credit. We will help you find private lenders that offers HELOCs with 500 credit scores if you need that.

If your fico score isn’t where you’d like it to be, consider improving it before applying for a new HELOC or home equity loan. Begin by obtaining a free credit report to assess your current standing. Review your credit rating and dispute any errors, late payments, collections or unauthorized charges to have them removed.

Does a HELOC Impact Credit?

Yes a HELOC can impact your credit in several ways, both positively and negatively, depending on how it’s managed. When you apply for a HELOC, the lender performs a hard inquiry on your credit report, which may temporarily lower your credit score by a few points. Once approved, the HELOC is reported as a revolving credit account, similar to a credit card, and becomes part of your credit profile.

The amount of the home equity line of credit and how you utilize it affect your credit utilization ratio, a key factor in your credit score. Keeping your balance low relative to the HELOC limit can positively impact your credit score by demonstrating responsible credit usage. Conversely, maxing out your HELOC or carrying a high balance can increase your utilization ratio, potentially lowering your score.

Timely payments are critical, as payment history is the most significant factor in determining your credit score. Consistently making on-time payments can strengthen your credit profile, while missed or late payments can harm it significantly. Additionally, the HELOC’s age contributes to your credit history, with longer credit accounts positively influencing your score.

Can You Get a HELOC with Low Credit Scores?

Understanding these criteria can improve your chances of approval—and help you secure more favorable rates and borrowing power. Although most second mortgage lenders set a minimum credit requirement for a home equity line of credit, some may consider applicants for a HELOC with a bad credit score or a no-credit history, provided they meet other HELOC requirements well above the minimum.

Taking out a HELOC with bad credit is possible if you meet the bank and lender’s HELOC requirements and guidelines. Understanding the various HELOC credit requirements can help you assess your eligibility. In addition to your credit score, the loan amount debt to income ratio, and appraised value will all be closely scrutinized.

The minimum credit score for a HELOC loan ranges from 640 to 700 in most banks.  However, the minimum credit score for Non QM and private money lenders ranges from 550 to 620. There are hard money lenders extending  high risk low credit HELOC loans for borrowers with credit scores as low as 500.

How Much HELOC Can You Qualify for Based on Your Credit Score?

You can calculate a home equity line of credit using a calculator online.

Most HELOC lenders will offer a basic calculator to estimate how much you’ll be able to borrow (if at all).

Again, your credit isn’t the only thing determining your eligibility and the sum you can borrow over a period.

That said, your credit score, current home value, and outstanding mortgage balance are enough for a rough idea before you begin the application.

How Does HELOC Affect Your Credit Score?

A HELOC application requires a hard credit pull, which can temporarily affect your credit ratings. So, it’s important to be absolutely certain and do your homework about the lender and the requirements before you apply.

Once your HELOC has been approved, its impact on your credit report is like any other debt. It depends on how well you manage it. Unlike a mortgage or home equity loan, it’s reported like a revolving credit. If you pay the HELOC payments on time, you can use it to improve your credit score.

Similarly, if you use the cash from HELOC to pay off other debts, you may see improvements in your credit. Closing a HELOC also impacts your credit history, especially if you don’t have other credit available. Essentially, if you have a big debt balance, you can expect a hit on your credit score.

Improving Your Credit Score for HELOC

If you have a lower credit score and want to apply for a HELOC with bad credit, you can work to improve your credit rating. Of course, that will take some time, but it’s entirely possible. You can build good credit with sound financial management and raise your credit scores to the minimum requirement set by the lender.

Here’s how you can do that:

Check Your Credit Report

It’s not uncommon for faulty items in your credit report to lower your credit scores. Credit reporting companies offer free annual credit reports. Look for any reporting errors from the credit bureaus, such as fraudulent accounts or wrong payments. You can request that such records be removed, which will improve your credit score.

Pay Debts and Avoid Late Payments

Paying your debit will work in your favor and improve your chances of getting HELOC approval in two ways. It will improve your credit score and bring down your DTI. More importantly, avoid late payments on your bills, as those directly impact your credit. Ensure you’re paying the minimum monthly amounts on your credit cards.

Key Points on HELOCs and Credit Scores

The HELOC credit score requirement is an important one, but not the only one. While you need credit scores of 680 or higher, you may still be able to get one if other requirements are met. That said, your chances are smaller if you have a low credit score and a bad credit history and may not get favorable conditions.

Besides your credit score, how much you owe on your home (and other loans) also plays a big role. So, even with a good credit score, a high DTI will negatively impact your application.

• Maximize HELOC funds for Cash Out
• Low HELOC Payments
• Find the Best HELOC Interest Rates

The RefiGuide can help you uncover the best home equity loans and HELOCs that are available with your specific fico number. You can shop with multiple lenders and brokers that will outline the current minimum HELOC credit score requirements so you can know what is available and if you meet the HELOC guidelines for the amount you want to borrow and the best possible HELOC interest rate.

Reviewing your credit scores and reports can provide insight into your standing and potential options. In many cases, you can check your FICO credit score for free through your bank, credit union, or Experian (one of the three major credit bureaus: Equifax, Trans Union and Experian). Additionally, third-party paid services may offer more detailed score tracking so you can meet you goals and the minimum credit score requirements for a HELOC.

Frequently Asked HELOC Credit Questions

What credit score is needed for a HELOC?

To qualify for a HELOC, most traditional lenders typically require a credit score of at least 620. However, if you have a 700 credit score or higher you may receive better interest rates and  more favorable terms, such as lower interest rates and better borrowing limits. Some lenders may accept applicants with scores in the 600–620 range, but they often impose stricter terms like higher HELOC interest rates or reduced credit limits. Additionally, credit history, debt-to-income ratio (DTI) , and the amount of home equity you have also play critical roles in eligibility.

If your credit score falls below 620, alternative lending options may still be available, though they tend to carry steeper borrowing costs. To improve your chances of approval, consider paying down existing debt to lower your DTI ratio and ensuring that your credit report is free of errors. Shopping around with multiple lenders can also help you find more lenient credit requirements or promotional offers tailored for your financial profile.

Can I get a HELOC with a 600-credit score?

Most lenders require at least a credit score of 680 for HELOC. If you have 600 fico score, you may still be able to qualify, but you may need to do so at a higher rate. There are even a few lenders that offer a bad credit HELOC option for borrowers with credit scores between 500 and 600. Of course you will need more equity and a lower loan to value (LTV) to qualify for a HELOC with low credit scores.

Other requirements, such as the CLTV and DTI, may help you satisfy the lender for HELOC. If you do not qualify for a HELOC loan because your fico scores are too low, consider refinancing. See the current refinance mortgage credit score requirements.

Can I qualify a HELOC with 500 to 580 credit score?​

Getting approved for a HELOC with a credit score between 500 and 580 can be challenging, as most traditional lenders prefer scores of at least 600. However, some specialized HELOC lenders or credit unions may offer HELOCs to borrowers with lower credit scores, though they typically impose higher interest rates, stricter repayment terms, and reduced borrowing limits.  To improve your chances of approval, you might consider boosting your credit score by paying down outstanding debt and addressing any errors on your credit report. Exploring alternative lending, such as hard money non QM loan, could also provide access to a home equity line of credit, though at a higher cost. It’s crucial to shop around and compare terms to ensure you get the best deal available for your credit profile.

Can you refinance your HELOC?

Much like a mortgage, you can refinance a home equity loan if your current lender is offering you poor conditions like a high interest rate or not enough money. Many lenders do not offer home equity lines of credit, so you may need a 2nd mortgage lender to refinance a HELOC.

It also depends on whether another lender or bank is willing to offer you HELOC refinancing. You’ll need to apply for a new HELOC with the new lender and begin refinancing.

What are the closing costs on a HELOC or home equity loan?

Most mortgage lenders will charge closing costs on home equity loans and HELOCs. The lending fees and closing costs range from 1 to 5% in most cases. You can expect most banks and credit unions to charge an annual fee for HELOCs, but most lenders will waive that fee.

Do you need good credit for the best HELOC interest rate?

Yes, good credit (typically 700+, ideally 740+) is essential for a low-rate HELOC in 2025. Lenders like LoanDepot and Bank of America offer rates as low as 6.99% APR for high credit scores, while scores below 620 may face rates above 9%. A strong credit score and low debt-to-income ratio (below 43%) secure better terms.

Does an unused HELOC affect credit score?

An unused HELOC may slightly lower your credit score due to the new credit inquiry and increased available credit affecting utilization ratios. However, the impact is minimal if you maintain low debt levels elsewhere. Lenders like PNC report unused HELOCs to credit bureaus, but responsible management prevents negative effects.

Summary on HELOC Credit Requirements

The RefiGuide can help you learn about the current HELOC requirements and connect you with experienced home equity lenders that offer competitive interest rates on HELOCs, home equity loans and cash-out refinances. A HELOC functions much like a credit card, providing you with credit that’s available when you need it. Getting a HELOC for bad credit can be challenging but is possible if you have strong credentials like a low debt to income ratio and a low loan to value ratio. However, qualifying for these loans can be challenging, as they often require a significant amount of home equity and a high credit score. Take advantage of the free advice the RefiGuide offers with HELOC credit lines with no application fee or obligation.

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