What credit score do you need for a HELOC?
Most lenders start around 620. Every band above that lowers your margin.
Reviewed by Shawn Way, NMLS #1007298★ 4.9 from 111 reviewsUpdated
What credit score do you need for a HELOC?
Most HELOC lenders require a credit score of at least 620, and many banks want 660–680; a few go lower if you keep more equity. Your score sets your price: in 2026, HELOCs funded by Shawn Way's team started at a median 7.55% for 760+ credit, 9.00% for 680–719 and 11.47% under 640.
On this page
Typical rates by score
| Credit score | Spread over prime | Typical rate today |
|---|---|---|
| 760+ | +0.25–1.75 | 7.25%–8.75% |
| 720–759 | +1.00–2.75 | 8.00%–9.75% |
| 680–719 | +1.50–3.25 | 8.50%–10.25% |
| 640–679 | +2.25–5.50 | 9.25%–12.50% |
| Under 640 | +4.00–6.00 | 11.00%–13.00% |
How these ranges are set: the middle half of starting rates on 551 primary-home HELOCs that Shawn Way's team funded from August 2026 through October 2026, each expressed as a spread over the prime rate when it closed and added to today's prime. They cover fixed and variable lines and all loan sizes, and update monthly. Historical results, not an offer or a quote; your rate depends on your credit, equity, line size, property and state. Prime 7.00%, as of October 28, 2026.
Use a free calculator, or get your HELOC rate from Shawn.
What borrowers actually got in 2026
Median starting rate on HELOCs Shawn Way's team funded in 2026, by credit score. Rates were set at the prime rate in effect when each loan closed.
| Credit score | HELOCs | Median starting rate |
|---|---|---|
| 760+ | 750 | 7.55% |
| 720–759 | 481 | 8.20% |
| 680–719 | 536 | 9.00% |
| 640–679 | 341 | 10.55% |
| Under 640 | 114 | 11.47% |
Fixed-rate HELOCs funded in 2026 started at a median 8.65%; variable-rate lines at 9.26%.
Source: HELOCHQ analysis of 9,601 HELOCs funded by Shawn Way's team, January 2023–October 2026. Historical starting rates on funded loans, not offers or quotes. Month by month: HELOC Rate Index.
Raising your score before applying
- Pay card balances below 30% of each limit, ideally below 10%, a statement before you apply.
- Dispute errors on your reports.
- Don't open other new credit in the months before.
Below 620? See HELOC options with bad credit.
What each tier costs
The margin difference between tiers is where the money is. On a $100,000 balance, each point of rate is about $1,000 a year in interest. Moving from the 680–719 tier to 720–759 typically saves around half a point to a point: $500–$1,000 a year on that balance, every year you carry it.
Which score the lender uses
- Most lenders pull scores from the three credit bureaus and use the middle one. Some HELOC lenders use a single bureau.
- With two borrowers, lenders often use the lower of the two middle scores.
- Mortgage lenders generally use older FICO versions, which can differ from the score in your banking app by 20 points or more.
How to raise your score before applying
- Pay card balances down before the statement date. Card balances are reported when the statement closes. Getting each card under 30% of its limit, ideally under 10%, can lift a score within one or two cycles.
- Fix errors. Pull your reports free at AnnualCreditReport.com and dispute accounts that aren't yours, wrong late payments, or paid debts still showing balances.
- Don't open new accounts in the months before applying.
- Ask about a rapid rescore. When you've paid down balances or fixed errors, a lender can sometimes request updated reporting in days instead of waiting a month.
- Keep old accounts open, even if unused.
If your score is under 640
Fewer lenders will offer a HELOC, and the margin will be higher. More equity helps: some lenders accept lower scores when you'll keep 25%–30% equity. Other options include programs for scores under 580 and HELOCs with lower credit. Sometimes the best move is three to six months of paying cards down, then applying.
What else lenders check
The score is the headline, but underwriters also read the report: late mortgage payments in the past 12 months, collections, judgments and recent bankruptcies can lead to a decline even with an acceptable score. Full requirements.
More questions
Does checking my own credit lower my score?
No. Checking your own credit reports or scores doesn't lower your credit score, because it's a soft inquiry, unlike the hard pull a HELOC lender may do when you apply.
Will shopping several HELOC lenders hurt my score?
Possibly. Each HELOC lender may do a hard credit pull when you apply. Ask whether a lender's initial quote uses a soft pull, and keep your applications within a few weeks of each other.
Example
Paying $4,000 off two cards before the statement date moves a borrower from 702 to 724, saving about half a point on a $60,000 line: roughly $300 a year.
Related question: What is a good HELOC rate?
Related question: Does a HELOC affect credit utilization?
Also asked
Does my income affect my credit score?
No, your income doesn't affect your credit score. Scores are based on credit history, not income. Lenders look at income separately for debt-to-income.
Didn't see your question? Ask Shawn
Preview only. Nothing was sent.
Sources
Official sources behind this guide.
- What is the difference between a home equity loan and a HELOC? · Consumer Financial Protection Bureau
- What you should know about home equity lines of credit (booklet, PDF) · Consumer Financial Protection Bureau
- Bank Prime Loan Rate (DPRIME) · Federal Reserve Bank of St. Louis, FRED
- Regulation Z §1026.40: Requirements for home equity plans · Consumer Financial Protection Bureau
- Find a HUD-approved housing counselor · Consumer Financial Protection Bureau