What credit score do you need for a HELOC?
The credit score you need for a HELOC depends on the lender type you’re targeting — and whether you want to simply get approved or actually get a competitive rate. These are two very different targets.
- Minimum to get approved anywhere: 620 at select credit unions. Below this, standard HELOC products are essentially unavailable
- Minimum for most banks: 660–680. Banks use stricter algorithmic cutoffs and rarely make exceptions below this threshold
- For competitive rates: 700+. Opens most lenders and gets you into reasonable margin territory
- For best available rates: 740+. This is the threshold above which most lenders offer their lowest margin. Going from 739 to 740 often saves $375–$750/year on $150,000
Credit score ranges and what they mean for your HELOC
Each credit score range opens a different set of lenders and commands a different rate. Understanding where you fall — and what the next tier up means in dollar terms — is the foundation of your pre-application strategy.
| Score range | Category | HELOC access | Rate impact | Best lender type |
|---|---|---|---|---|
| 800–850 | Exceptional | All lenders, best terms | Lowest margin | Any |
| 740–799 | Very good | All lenders | Near-lowest margin | Any |
| 700–739 | Good | Most lenders | Competitive | Banks or CUs |
| 660–699 | Fair-Good | Select banks, most CUs | Above average | Credit unions |
| 620–659 | Fair | Credit unions primarily | Significantly higher | Credit unions only |
| 580–619 | Poor | Almost none | Effectively unavailable | N/A |
| Below 580 | Very poor | None | Not available | N/A |
Why 740 is the most important threshold
Most lenders price HELOC margins in 2–3 tiers. The most impactful boundary is at 740 — the point where you move from “good” to “very good” in lender systems. Crossing from 739 to 740 often unlocks a 0.25–0.50% lower margin, saving $375–$750/year on $150,000, for the full 30-year life of the HELOC.
Which credit score do HELOC lenders actually use?
This is the most misunderstood aspect of HELOC credit requirements. The score you see on Credit Karma, your bank app, or even your credit card statement is almost certainly not the score your HELOC lender will use.
The tri-merge middle score process
Which FICO model do lenders use?
- HELOC lenders use FICO 2/4/5 — these are the same older mortgage-style models used for purchase loans: FICO Score 2 (Experian), FICO Score 4 (TransUnion), FICO Score 5 (Equifax)
- Credit Karma uses VantageScore 3.0 — a completely different scoring model that can differ by 20–50+ points from FICO 2/4/5
- Most bank apps use FICO 8 — also different from FICO 2/4/5. Better than VantageScore but still not the score lenders use
- myFICO.com — the only consumer-facing service that shows your actual FICO 2/4/5 scores. Worth the $29–$39 before a major HELOC application
Joint applications — the lower score rule
If you’re applying for a HELOC with a co-borrower, lenders use the lower of the two middle scores. This matters more than most couples realize:
- Borrower 1 middle score: 760
- Borrower 2 middle score: 680
- Lender uses: 680 — placing you in the fair-good tier, not the very-good tier
How your credit score affects your HELOC rate and payment
Your credit score determines your margin — the fixed component of your HELOC rate that is set at closing and never changes for the full 30-year life of the loan. A lower credit score means a higher margin, which means paying thousands more in interest every year, decade after decade.
Your HELOC rate = Prime Rate (currently 7.50%) + Your Margin
Margin by credit score tier (typical ranges — 2026)
The 30-year cost of a lower credit score
| Credit tier | Margin | HELOC rate | Annual interest ($150K) | 30-yr total interest |
|---|---|---|---|---|
| 760+ (exceptional) | 0.50% | 8.00% | $12,000/yr | $172,800 |
| 740–759 (very good) | 0.75% | 8.25% | $12,375/yr | $180,000 |
| 700–719 (good) | 1.25% | 8.75% | $13,125/yr | $191,250 |
| 660–679 (fair-good) | 1.75% | 9.25% | $13,875/yr | $202,500 |
| 620–659 (fair) | 2.25% | 9.75% | $14,625/yr | $213,750 |
Credit score requirements by lender type
The same credit score will get you three very different outcomes depending on which lender type you approach. Understanding this is what separates borrowers who get approved on the first try from those who accumulate hard inquiries chasing an approval that never comes.
What hurts your credit score most before a HELOC application
Understanding the FICO scoring factors — and their relative weights — shows you exactly where to focus your improvement effort and what to avoid in the months before applying.
The 5 FICO score factors
- Payment history (35%) — A single 30-day late payment can drop your score 50–110 points and stays on your report for 7 years. HELOC lenders specifically look at the last 12–24 months of payment history. One missed payment in the past year is a significant red flag even with an otherwise strong profile
- Credit utilization (30%) — The ratio of balances to limits across all revolving accounts. Over 30% hurts; over 50% hurts significantly; over 70% is very damaging. Each card’s individual utilization matters — a maxed card hurts even if your total utilization is low
- Hard inquiries (10%) — Each new credit application triggers a hard inquiry (−3 to −5 points each). Multiple inquiries outside the 14-day mortgage shopping window compound the damage. Applying for a new credit card 3 months before your HELOC is a common mistake
- Account age (15%) — Closing old credit card accounts shortens your average account age and reduces total available credit (increasing utilization). Never close old cards before a mortgage or HELOC application
- Credit mix (10%) — Having only revolving accounts (all credit cards) slightly hurts vs having a mix of revolving and installment debt. This factor is harder to improve quickly and less impactful than the top two
What NOT to do in the 6 months before applying
How to improve your credit score before applying for a HELOC
Not all credit improvements are equal. Some show results in 30 days; others take 6–12 months. Here’s every method ranked by speed and impact.
Fastest impact: shows up in 30–60 days
1. Pay down revolving credit card balances — The single highest-impact action available. Credit utilization is 30% of your FICO score and updates with every billing statement. Getting below 30% on every card (not just total) can add 20–80+ points in a single cycle. Below 10% adds even more.
| Current utilization | Target | Expected score impact | Timeline |
|---|---|---|---|
| 90%+ (maxed) | Below 30% | +40–100 pts | 30–45 days |
| 50–90% | Below 30% | +20–60 pts | 30–45 days |
| 30–50% | Below 10% | +10–30 pts | 30–45 days |
| Below 30% | Below 10% | +5–15 pts | 30–45 days |
2. Dispute credit report errors — Pull all 3 reports free at AnnualCreditReport.com. Common errors include accounts that aren’t yours, late payments incorrectly reported, accounts showing wrong balances, and closed accounts showing a balance. Disputes resolve in 30 days and can add 20–50+ points if genuine errors are corrected.
3. Become an authorized user — Ask a family member with an old, high-limit, low-balance credit card to add you as an authorized user. That card’s history appears on your report immediately. Can add 10–30 points depending on the card’s age and utilization.
Medium impact: shows up in 3–6 months
4. Request credit limit increases — Call your existing card issuers and request limit increases, often done via a soft inquiry (no score impact). A higher limit immediately lowers your utilization ratio.
5. Negotiate pay-for-delete on collections — If you have collection accounts, some collectors will remove the collection from your report in exchange for payment. Get it in writing before paying. Removing a collection can add significant points.
Longer-term: 6–12 months
6. Build a perfect payment history — Set up autopay for the minimum on every account. Even one late payment undoes months of other improvements. Perfect payment history for 12 months is the strongest signal a lender can see.
7. Let hard inquiries age — Each hard inquiry stops affecting your score after 12 months and falls off your report entirely after 24 months. If you’ve had recent inquiries, simply waiting helps.
HELOC credit score requirements vs mortgage requirements
Many homeowners assume their HELOC credit requirements will be similar to their original mortgage application. In some ways they’re the same — but there are important differences that trip up experienced homeowners.
| Requirement | Purchase mortgage | HELOC |
|---|---|---|
| Min credit score (conv.) | 620 | 620 (CUs) / 680 (banks) |
| Ideal credit score | 740+ | 740+ |
| Score model used | FICO 2/4/5 (same) | FICO 2/4/5 (same) |
| Rate type | Fixed options available | Variable only (standard) |
| Appraisal requirement | Full appraisal (almost always) | AVM at online lenders (free) |
| Processing time | 30–60 days | 2–6 weeks |
| Income verification | Full | Full (same requirements) |
| FHA option (lower score) | Yes (500 min with 10% down) | No — HELOCs are conventional |
Key differences to know
- Your score may have changed significantly — If you bought your home 5–10 years ago, your credit profile is different now. Scores can go up (more account history, paid-off debts) or down (high utilization, missed payments). Check your current score before assuming mortgage approval = HELOC approval
- No FHA or VA HELOC products — Government-backed low-credit options (FHA allows 500+ with 10% down) don’t exist for HELOCs. All HELOCs are conventional products with standard credit requirements
- HELOC rates are always variable — Unlike mortgages where you can lock in a fixed rate, standard HELOCs are variable. Your credit score affects your margin permanently, and then your rate moves with the prime rate
A 90-day credit score improvement plan for HELOC applicants
If you need to improve your score before applying, 90 days is enough time to move one or two tiers — if you act systematically from day one. Here’s the complete month-by-month plan.