Qualifying
What credit score do you need for a home equity loan?
Most lenders look for a credit score of at least 620 for a home-equity loan or HELOC, with the best rates reserved for borrowers at 700+. Some lenders will approve scores in the 580–619 range when you have strong equity and a low debt-to-income ratio, but expect higher rates and stricter terms.
The full picture
Typical credit-score minimums
- 620 — a common floor for many home-equity lenders.
- 680–700 — opens up more lenders and noticeably better pricing.
- 700+ — generally needed for the most competitive rates.
- 580–619 — possible with some lenders if you have substantial equity and low debt-to-income, but at higher rates.
Credit score is only part of the decision
Home-equity lenders also weigh your loan-to-value ratio (how much equity you hold), debt-to-income ratio, and income stability. Strong equity and a low DTI can offset a middling score; a high score alone won't approve a loan if you've already borrowed against most of your equity.
How to strengthen your application
- Check your reports at AnnualCreditReport.com and dispute any errors before applying.
- Pay down revolving balances to lower both your utilization and your DTI.
- Compare offers from multiple lenders — rates and minimums vary widely.
The numbers
Key takeaways
- Most home-equity lenders want 620+; 700+ earns the best rates.
- 580–619 is possible with strong equity and low DTI, at higher cost.
- Equity (LTV) and debt-to-income matter as much as the score.
- Fix report errors and lower revolving balances before applying.
Frequently asked questions
Can you get a HELOC with a 620 credit score?
Yes — 620 is a common floor for many home-equity lenders, though you'll likely see higher rates than a borrower with 700+. Some lenders go as low as 580–619 if you have substantial equity and a low debt-to-income ratio.
What credit score do you need for the best home equity rates?
Lenders generally reserve their most competitive home-equity rates for borrowers with a credit score of 700 or higher. Scores in the 680–700 range open up more lenders and noticeably better pricing than the 620 floor.
Can I get a home equity loan with a 580 credit score?
It's possible with some lenders if you have strong equity (a low loan-to-value ratio) and a low debt-to-income ratio, but expect higher rates and stricter terms than a borrower above 620.
Does home equity matter more than credit score for a HELOC?
Both matter. Home-equity lenders weigh your loan-to-value ratio, debt-to-income ratio, and income stability alongside your credit score — strong equity and low DTI can offset a middling score, but a high score alone won't approve a loan if you've already borrowed against most of your equity.
How can I improve my chances of qualifying for a home equity loan?
Check your credit reports at AnnualCreditReport.com and dispute any errors before applying, pay down revolving balances to lower both utilization and DTI, and compare offers from multiple lenders since minimums and rates vary widely.
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Published 2026-05-22 · Updated 2026-05-22 · https://clearvaluelending.com/answers/what-credit-score-for-a-home-equity-loan