Most lenders require a minimum credit score of 620 to qualify for a home equity line of credit (HELOC), though some set the bar at 640 or higher. A few credit unions will go as low as 600. The minimum gets your foot in the door, but your credit score also affects how much you can borrow, what interest rate you’ll pay, and how much equity you need to keep in your home.
Where Most Lenders Set the Floor
The standard minimum credit score for a HELOC has shifted downward over the past several years. A score of 680 used to be the industry benchmark, but 620 is now a more common cutoff. That said, individual lenders vary quite a bit. Some national banks require 660 or higher. Others, particularly credit unions, accept scores as low as 600. At least one major mortgage lender sets its own floor at 640.
These minimums aren’t universal rules set by a regulator. Each lender decides its own threshold based on how much risk it’s willing to take. That means getting turned down by one lender doesn’t necessarily mean you’ll be turned down everywhere. Shopping around matters, especially if your score is in the 620 to 660 range.
How Your Score Affects Your Rate
Qualifying for a HELOC and getting a good rate on one are two different things. Borrowers with higher credit scores consistently receive lower interest rates, and HELOCs carry variable rates, so even a small difference in your starting rate compounds over the life of the credit line.
If your score is in the mid-600s, expect to pay noticeably more in interest than someone with a 740 or above. Lenders reserve their most competitive rates for borrowers who exceed the minimum requirements by a comfortable margin. If your score is close to the floor, it’s worth considering whether improving it before applying could save you meaningful money over the draw period.
Equity and Debt-to-Income Requirements
Credit score is just one piece of the approval puzzle. Lenders also look at how much equity you have in your home and your debt-to-income ratio (DTI), which is the percentage of your gross monthly income that goes toward debt payments like your mortgage, car loans, and credit cards.
Most lenders require you to maintain at least 20% equity in your home after the HELOC is factored in, though some allow as little as 15%. The amount you can borrow depends on a calculation called the combined loan-to-value ratio (CLTV): your existing mortgage balance plus the new credit line, divided by your home’s appraised value. The lower your credit score, the more equity a lender may require you to keep untouched.
On the income side, most lenders cap your DTI at 43%, though some credit unions allow up to 50% if you have strong credit or significant equity. If your credit score is near the minimum, you’ll likely need a DTI well below 43% to get approved. Lenders at the margins look for what they call “compensating factors” to offset risk: substantial home equity, cash reserves, stable employment history, or a clean recent payment record.
What Happens Below 620
If your credit score is below 620, most traditional HELOC lenders will decline your application. A few lenders work with borrowers in this range, but they typically require significantly more equity, lower debt levels, and stronger income documentation. The rates you’ll be offered will also be higher.
If you can’t qualify for a HELOC, several alternatives let you tap your home equity. A home equity loan works similarly but gives you a lump sum with a fixed interest rate and fixed monthly payments instead of a revolving credit line. A cash-out refinance replaces your existing mortgage with a larger one and hands you the difference. Both may have slightly different qualification standards. A personal loan doesn’t require home equity at all, though rates will generally be higher since the loan isn’t secured by your property.
Steps to Strengthen Your Application
If your score is close to the minimum, a few targeted moves can make a real difference. Paying down credit card balances lowers your credit utilization ratio, which is one of the fastest ways to boost your score. Making all payments on time for several months builds the recent positive payment history that lenders weigh when your overall profile is borderline. Paying off small outstanding debts also improves your DTI, which helps on two fronts at once.
Before you apply, check your credit reports for errors. Incorrect late payments or accounts that don’t belong to you can drag your score down unnecessarily, and disputing them is free. Even a 20- or 30-point improvement can move you from a marginal applicant to a comfortable approval, or from an above-average rate to a good one.