Here's the reality: lenders look at a range of scores, not just one magic number. Your credit score matters, but it's only one piece of the puzzle. Equity, income, and debt-to-income ratio all play a part too.
This guide breaks down the score ranges lenders typically want, what happens if your score falls short, and practical steps to strengthen your application before you apply.
Key Takeaways
- Most lenders require a minimum credit score of 620-680 for a home equity loan or HELOC
- Scores of 700+ typically unlock better rates and higher borrowing limits
- Credit score alone doesn't determine approval: equity, DTI, and income matter too
- Borrowers below 620 may still qualify through specialized lenders or by strengthening other factors
What Credit Score Do You Need for a Home Equity Loan or HELOC?
The short answer: 620 to 680 is the range most lenders cite as their baseline. According to Bankrate's 2025 home equity requirements guide, 680 used to be the common threshold, but the norm has shifted closer to 620 — especially for HELOCs.
That said, requirements vary by lender:
- Bank of America requires 660+ for its HELOC, along with at least 15% home equity
- U.S. Bank lists 660+ for both HELOCs and home equity loans
- Smaller or online lenders often set the floor at 620
Score Tiers: What Each Range Gets You
Here's how the tiers generally break down:
| Score Range | What to Expect |
|---|---|
| 740+ | Best rates, highest borrowing limits |
| 700-739 | Strong terms, competitive pricing |
| 660-699 | Standard approval range at many major banks |
| 620-659 | Approval possible with some lenders; higher rates or tighter limits |
| Below 620 | Limited lender options, stricter terms |
HELOCs vs. Home Equity Loans
Because HELOCs are revolving credit lines (similar to a credit card), some lenders set the bar slightly higher than for a fixed-rate home equity loan. Bankrate's lender comparisons found examples like FirstAccess and RenoFi requiring 620 for a home equity loan but 660 for a HELOC.
Requirements are lender-specific, not universal. Shopping around matters, since one lender's "no" doesn't mean another will decline you too.
Can I Get a Home Equity Loan or HELOC With a 600 or 500 Credit Score?
With a 600 score, approval is possible but harder. Some lenders, including Figure, Upstart, and Splash, list minimum scores around 600, according to Bankrate's 2026 lender roundup. Expect tradeoffs:
- Higher interest rates than borrowers with 680+
- Smaller available loan amounts
- Shorter repayment terms in some cases
With a 500 score, options narrow. Bankrate notes that scores in the 500s are unlikely to secure a home equity loan through most lenders. This score sits below the threshold nearly every mainstream lender sets.
Strong equity or a low DTI ratio can sometimes offset a lower score. If you're carrying 40% equity and minimal debt, a lender may look past a bruised credit history that would otherwise disqualify you. But don't count on it as a guarantee. It varies by lender and program.
Beyond Credit Score: Other Qualification Factors
Credit score gets the headlines, but lenders weigh several factors together.
Debt-to-Income (DTI) Ratio
Most lenders cap DTI around 43%, though some allow exceptions up to 45-50%. Here's a quick example:
- Monthly income: $6,000
- Existing debts (mortgage, car loan, credit cards): $2,200
- DTI = $2,200 ÷ $6,000 = 36.7%
That falls comfortably under most caps.
Home Equity and Loan-to-Value (LTV)
Lenders typically want you to retain 15-20% equity after borrowing. Bank of America, for example, requires at least 15% equity remaining.
Combined LTV divides total loan balances (existing mortgage plus the new home equity loan or HELOC) by your home's appraised value. The lower that number, the more room you have to borrow.
Income and Employment Verification
Expect to provide:
- Pay stubs or tax returns
- Employment verification
- Bank statements showing reserves
Payment History and Credit Report Review
Lenders don't stop at the score itself. They'll scan your full credit report for late payments, collections, or red flags that a single number might not reveal.
What Can Disqualify You From Getting a Home Equity Loan or HELOC?
Several issues can derail an application, even with a decent credit score.
Financial disqualifiers:
- Insufficient home equity
- Debt-to-income (DTI) ratio exceeding lender limits
- Inconsistent or unverifiable income
Credit-related disqualifiers:
- Recent bankruptcy or foreclosure
- Outstanding liens or judgments
- Credit scores far below lender minimums
Equity shortfalls are most severe when you're underwater on the mortgage: owing more than the home is worth leaves nothing to borrow against. A home listed for sale can also stall approval, since lenders typically want stable, long-term ownership intent.
Note: bankruptcy doesn't always mean automatic denial. According to Bankrate's 2025 guide on bankruptcy and HELOCs, approval afterward is harder but not impossible — it often just means higher rates or stricter terms.
How to Improve Your Credit Score Before Applying
If your score isn't where you want it, a few months of preparation can make a real difference.
- Pay down revolving balances. Aim to get credit utilization below 30%. Experian's 2025 guidance suggests paying balances before your statement closing date, since most scoring models use the most recently reported figure.
- Keep payments on time. Payment history makes up 35% of your FICO Score — the single largest factor.
- Avoid new credit inquiries. A hard inquiry can shave 5-10 points off your score and linger on your report for two years, though its score impact usually fades within 12 months.
- Review your credit report for errors. Dispute anything inaccurate before you apply. An error you catch early won't drag down your application later.
Working with a knowledgeable mortgage advisor can also help. At ClearPoint Mortgage Advisors, we help borrowers understand where their credit profile stands and explore lender options suited to their specific situation, since qualification guidelines vary widely from one lender to the next.
Estimating Your Monthly Payment
Your credit score helps set the rate you qualify for, and that rate drives your monthly payment. Home equity loan payments come from three inputs: the loan amount, the fixed interest rate, and the repayment term. HELOC payments work differently: the rate is variable and often interest-only during the draw period.
Here's what that looks like using recent national average rates:
| Product & Assumptions | $50,000 | $100,000 |
|---|---|---|
| Home equity loan (8.13% fixed, 60-month term) | $1,016.93/month | $2,033.87/month |
| HELOC (7.30% variable, interest-only draw) | $304.17/month | $608.33/month |
The HELOC figures are interest-only estimates. Once you enter the repayment phase, or if rates shift, your payment will change. A stronger score can mean a lower rate and a smaller monthly bill.
Frequently Asked Questions
What credit score do you need to get a home equity loan?
Most lenders require a score of 620-680, though requirements vary by lender and loan type. Scores above 700 generally unlock better rates and higher borrowing limits.
Can I get a home equity loan with a 600 credit score?
It's possible with certain lenders, especially if your equity and income are strong. Expect higher interest rates or smaller loan amounts compared to borrowers with higher scores.
Can I get a HELOC with a 500 credit score?
A 500 score falls below most lenders' minimum thresholds. Explore alternative financing or improve your score before applying.
Can I get a home equity loan without good credit?
Some lenders specialize in lower-credit borrowers, and strong equity or a co-signer can help. The tradeoff is usually a higher interest rate and stricter terms.
How hard is it to qualify for a home equity loan or HELOC?
Difficulty depends on the combination of your credit score, available equity, and DTI ratio — not any single factor alone. Strong numbers in one area can sometimes offset weakness in another.
What can disqualify you from getting a home equity loan or a HELOC?
Common disqualifiers include insufficient equity, a DTI ratio above lender limits, recent bankruptcy or foreclosure, and credit scores well below the lender's minimum.
