Discover the minimum credit score you need to get a HELOC.
Home equity lines of credit let you borrow against your home’s equity. You can use these financial products to consolidate debt, pay for a vacation, cover medical bills and address other expenses. However, mortgage lenders will review your credit score and other details before deciding if you qualify for a line of credit. Knowing what credit score is needed for a HELOC can help you plan accordingly. We spoke with experts who laid out what you need to know.
What is a HELOC?
A HELOC is a line of credit that taps into your home equity. The more home equity you have, the more capital you can borrow against your home. Homeowners can increase their equity by making mortgage payments, applying sweat equity and waiting for their property to appreciate over time.
These financial products tend to have lower interest rates than most loans since they are tied to collateral. Personal and credit card loans are unsecured, which translates into higher rates. HELOCs usually have lower rates, and people with a lot of home equity can typically borrow more from a HELOC than they could with a personal loan or a line of credit.
What Credit Score is Needed for a HELOC?
A higher credit score will give you access to more competitive rates and potentially more financing. However, you don’t need an excellent credit score to get financing.
Ali Zane, the founder and CEO of Imax Credit Repair, shares the credit score range that can help most homeowners qualify for HELOCs.
“People should know that their credit score is important, but it's not the only thing lenders look at,” Zane explained. “More often than not, a number of 680 or higher gets you in. But if you want the best rates, try for 720 or higher. For some lenders, 620 is low enough, but the rates and terms will be stricter.”
What Else Do You Need to Get a HELOC
A 620 credit score may be enough to get a HELOC from some lenders, but continuing to boost your score will improve your chances. However, you can have a good credit score and still not get approved for a HELOC. Zane shares another key metric that mortgage lenders consider before giving you a home equity line of credit.
“Lenders seem to be paying more attention to debt-to-income ratio and home equity these days. This means that even if you have a great credit score, it may still be hard to get a loan if you have too much debt.”
The debt-to-income (DTI) ratio measures how much of your income goes toward debt. For instance, if you earn $10,000 monthly and pay $4,000 monthly in debt, you have a 40% debt-to-income ratio. A lower debt-to-income ratio will make it easier to get competitive loans.
The maximum debt-to-income ratio varies for each lender, and it’s a different ratio depending on the financial product. Most HELOC lenders will approve your application if you have a 43% debt-to-income ratio, but some lenders will let you get away with a 50% debt-to-income ratio.
Should You Get a Fixed-Rate HELOC or a Variable-Rate HELOC?
Most HELOCs have variable rates, but some lenders offer fixed-rate lines of credit. Both fixed-rate and variable-rate HELOCs have pros and cons, but knowing the differences can make the decision easier.
Vic DeLuce, SVP of Finance at Rate.com, shares what to consider when deciding between a fixed-rate HELOC or a variable-rate HELOC.
“A variable rate HELOC can be the right choice in the event that interest rates go down,” DeLuce explains. “Variable rate HELOCs also include unique features such as an interest only period resulting in a lower upfront payment and the ability to redraw once a portion of the HELOC has been paid down. A fixed rate HELOC allows the borrower to access the equity in their home with peace of mind in a fixed and predictable payment. Working with a knowledgeable lender like Rate can help borrowers determine which product is right for them based on long term financial goals and risk appetite.”
Fixed-rate HELOCs make monthly payments more predictable. However, a variable-rate HELOC makes more sense if you believe interest rates will decline.
Different Ways You Can Use a HELOC
You can use HELOC funds to make any purchase. Mortgage lenders don’t have to know how you intend to use the funds, but letting them know can improve the relationship. One way to use a HELOC is to pay off your credit card debt. Zane explains how this can be a big advantage and how using a HELOC this way can be a disadvantage if you aren’t careful.
“This could be a great idea or a big mistake if you are not focused. If you compare a HELOC to a credit card, the interest rate will be much lower, but you must remember that you are risking your home. Before they take out a loan, I always inform my clients to make a plan for paying it back. The worst mistake is using a HELOC to pay off credit cards and then getting more debt. You get into worse financial shape if you're not careful.”
Real estate investors scaling their portfolios usually take a HELOC from one of their properties to make the down payment on a new property. This strategy can help them build more wealth, but a bad market cycle can turn that type of leverage into a weakness.
You can also take out a HELOC to make home improvements, help with taxes, or cover another bill.
The Bottom Line
Some lenders will let you get a HELOC with a credit score as low as 620. However, a 680 FICO score and a low debt-to-income ratio will significantly boost your chances of getting approved. You can use a HELOC to cover any expense, and since it’s a revolving line of credit, you can continue to borrow against it as long as you pay it back.
HELOCs are valuable financial products that let homeowners tap into the equity they have built in their homes over the years. These lines of credit can help you grow your wealth or address high-interest debt like credit cards and personal loans.
Why You Should Trust Us
Benzinga has guided readers on their financial journeys for over 15 years. The Benzinga team has access to many financial experts who provide commentary on articles. The expert featured in this article has worked with many clients to improve their credit scores so they can obtain better financing.
I’m a Certified Personal Finance Counselor (CPFC) and have been a writer for Benzinga since 2021. I have also contributed to other finance publications, such as U.S. News & World Report, Business Insider and Newsweek.
FAQ
Can you get a home equity loan with a 580 credit score?
It’s an uphill battle to get a home equity loan with a 580 credit score, as most lenders have a minimum credit score requirement of 620 to 680. A lender might approve your application if you have a very low debt-to-income ratio, but it’s better to get your FICO score up to 620 before applying.
Is it hard to get approved for a HELOC?
Getting approved for a HELOC should be easy if you have a high credit score and a low debt-to-income ratio. The entire process can take a few weeks, but if you fulfill the requirements, you shouldn’t have an issue getting approved. Homeowners with credit scores below 620 or high debt-to-income ratios may have difficulty getting approved.
What disqualifies you from a HELOC?
A credit score below 620 and a debt-to-income ratio above 50% will typically disqualify you from a HELOC.
Sources
Zane, Ali. Personal interview with the author. 17 Feb. 2025.
Fitzpatrick, C. (2025, Jan. 2). HELOC for Debt Consolidation: Does it Make Sense for You? Benzinga https://www.benzinga.com/money/heloc-for-debt-consolidation
What is sweat equity? Habitat for Humanity. https://www.habitat.org/stories/what-is-sweat-equity
Clark, C. (2025, Jan. 7). Best HELOC Lenders for 2025. Benzinga. https://www.benzinga.com/money/best-heloc
O’Reilly, A. (2025, Jan. 8). HELOC Pros and Cons - Should You Get One? Benzinga. https://www.benzinga.com/money/heloc-pros-and-cons
DeLuce, Vic. Personal interview with the author. 17 Feb. 2025.
O’Reilly, A. (2025, Feb. 5). Fixed-Rate HELOC: The Key to Smart Home Financing. Benzinga. https://www.benzinga.com/money/fixed-rate-heloc
O’Reilly, A. (2025, Feb. 3). How Does Using a HELOC to Pay Off Credit Card Debt Work? Benzinga. https://www.benzinga.com/money/heloc-to-pay-off-credit-card-debt
About Marc Guberti
Marc Guberti is an investing writer passionate about helping people learn more about money management, investing and finance. He has more than 10 years of writing experience focused on finance and digital marketing. His work has been published in U.S. News & World Report, USA Today, InvestorPlace and other publications.