Minimum FICO Score For Home Equity Line Of Credit?

Most lenders set the floor at roughly a 620 FICO score, and many major banks push the bar to 640‑660 for a HELOC.

• 620‑639 points: often approved if debt‑to‑income ratio is low or equity is high.
• 640‑659 points: typically meets standard underwriting without extra conditions.
• 660 points and above: qualifies comfortably and unlocks better rates.
• Credit unions and online lenders sometimes accept scores as low as 580 when income, LTV, or payment history are strong.
• Exact thresholds vary by lender; always review the specific policy, as detailed in the 2023 Experian HELOC credit score analysis.

The median FICO score for approved HELOCs in 2023‑2024 is 711, and lenders approve roughly 65% of applicants overall (FICO 2023 HELOC report).

Applicants scoring 660‑699 see approval rates near 55%, those in the 700‑749 band hit about 70%, and scores 750+ enjoy approvals around 85% (Experian 2024 credit trends).

These benchmarks clarify why the minimum‑score ranges outlined earlier matter and they frame the real‑score scenarios explored in the next section.

• If your FICO score falls into a given range, lenders typically set a predictable HELOC approval chance, maximum loan‑to‑value (LTV) limit, and interest‑rate tier for that bracket.
• 720‑749: approval rates exceed 90 %; lenders often allow up to 85 % LTV; rates cluster around 4.5 % (average 2023‑2024 data from FICO's 2023‑2024 score insights).
• 680‑719: approval chances range 70‑85 %; LTV caps sit between 70 % and 80 %; rates usually sit between 5.0 % and 5.5 %.
• 640‑679: approval odds drop to 50‑70 %; lenders typically limit LTV to 60‑70 %; rates move up to 5.5‑6.5 %.
• Below 640: approval falls under 50 % without strong income or equity; LTV rarely exceeds 50 %; rates start at 6.5 % and climb higher.

FICO score decides both the interest rate you'll pay on a HELOC and the percentage of your home's equity the lender will make available. In 2023‑2024 data, borrowers with a 720 or higher typically see rates around 4.5% and can pull up to 95% of their home's value; those in the 660‑719 band usually face 5.5%‑6.5% rates and limits near 80%; scores below 660 often encounter 7%‑plus rates and caps at roughly 65% LTV.

Each 20‑point rise usually trims the rate by about 0.25% and nudges the limit a few percentage points higher FICO's 2023‑2024 scoring guide.

Because earlier sections showed the median FICO for approved HELOCs sits at 690 with a 78% approval rate, you can map your own score onto those benchmarks to predict both cost and borrowing power. If you land at 710, expect a rate a fraction lower than the median and a credit line that may exceed the average 78% LTV Experian's 2024 home‑equity study. Conversely, a sub‑650 score will likely push you into higher‑rate tiers and tighter limits, making the upcoming sections on score‑boost tactics and lender alternatives especially relevant.

HELOCs generally require a higher FICO floor; most banks set 680 as the minimum and reserve the best rates for scores 710‑720, weighting recent inquiries, credit‑utilization ratios, and any 90‑day delinquencies heavily (see the median FICO discussion earlier). A borrower with a 690 score typically qualifies for a 5.5% HELOC rate, but a dip below 680 often forces a higher rate or a denial.

Home‑equity loans accept slightly lower scores; many lenders approve applicants at 660 and may extend credit to 680 scores with a modest rate bump, placing greater emphasis on long‑term payment history and debt‑to‑income ratios rather than utilization. For example, a 665‑score borrower might secure a loan at 6.8% interest, while a 640 score usually requires a co‑borrower or a higher‑priced product. For the latest industry standards, review the 2023 FICO scoring trends before moving on to the score‑boost strategies in the next section.

Here are five fast, proven ways to lift your FICO score before you submit a HELOC application.

1. Reduce revolving balances below 30 percent of total credit limits.
   
   A credit card at $500 balance on a $2,000 limit drops utilization to 25 percent, often adding 5‑10 points to the score. See 2023 FICO utilization guidelines.
2. Dispute inaccurate items on your credit reports.
   
   Errors such as a mis‑reported late payment can shave 20‑50 points; filing a free dispute through the Experian dispute portal usually resolves within 30 days.
3. Keep long‑standing accounts open, even if you rarely use them.
   
   Length of credit history accounts for about 15 percent of the score; a 10‑year account contributes more than a newer one.
4. Add a small, paid‑off installment loan or become an authorized user on a family member's good‑credit card.
   
   A mix of revolving and installment credit improves the 'credit mix' factor, which can boost the score by 3‑7 points.
5. Pause new credit applications for at least 30‑45 days.
   
   Hard inquiries stay on your report for two years, but their impact fades after a month; waiting reduces the dip before your HELOC submission.

A lower FICO score can be offset by a strong loan‑to‑value ratio (LTV) and solid income, so lenders look first at how much equity you have and whether you can comfortably service the line. With 2023‑2024 data, borrowers who keep LTV at 80% or below and show a debt‑to‑income ratio under 43% often qualify for a HELOC even with scores in the high‑600s.

If you can't boost your score quickly, focus on raising equity (for example, refinance to a lower mortgage balance) and documenting stable earnings such as two years of payroll records or a profitable side business. These metrics signal low risk and let you negotiate higher limits or better rates, paving the way for the lender‑type options covered in the next section.

Six lender types regularly approve HELOCs even when a borrower's FICO score falls below the conventional 680 threshold.

• Credit unions - often set the floor at 620 and weigh membership ties. (Credit unions that offer HELOCs for low credit scores)
• Community banks - may approve HELOCs with scores as low as 580 when the loan‑to‑value ratio is strong. (Community banks and HELOC eligibility)
• Online direct lenders - use alternative data and typically accept 600 or higher. (Online lenders accept low FICO for HELOCs)
• Portfolio lenders - keep loans on‑balance sheet and flexibly fund borrowers with 580‑610 scores. (Portfolio lenders flexible HELOC underwriting)
• Non‑bank fintech lenders - rely on cash‑flow analysis and often approve 580 and above. (Fintech lenders and HELOCs for subprime borrowers)
• Mortgage brokers linked to wholesale lenders - can source HELOCs for 590‑610 scores through multiple wholesale programs. (How brokers find HELOCs for borrowers with low scores)

If your personal FICO score falls below the range most lenders cite for a HELOC, adding a co‑borrower can lift the application over the line.

Why a co‑borrower helps

• Combined credit scores raise the average, pushing the household into the 'typical' 660‑720 bracket discussed earlier.
• Lender‑reported debt‑to‑income ratios improve when the co‑borrower contributes income, meeting the thresholds highlighted in the 'prioritize LTV and income' section.
• Higher household income often expands the allowable loan‑to‑value, letting you tap more equity.
• Better combined credit can secure lower interest rates, moving you from a penal‑rate tier to the standard tier shown in the rate‑impact table.
• Real‑world example: primary applicant with a 620 FICO and $45K income pairs with a spouse at 720 FICO and $70K income; the lender approves an 80% LTV HELOC at 5.75% versus a 70% LTV at 7.25% if applied alone.

Key points to watch

• Both applicants undergo a full credit review; any negative marks on the co‑borrower affect the joint file.
• Responsibility for repayment is shared; missed payments damage both credit reports.
• Joint ownership means the co‑borrower has a legal claim on the home equity accessed.
• Ensure the co‑borrower understands the loan terms and future financial obligations.

Adding a qualified co‑borrower can turn a low‑score roadblock into an approved HELOC, but weigh the shared liability before proceeding.

If your current FICO sits below the 620‑640 range most lenders cite in the earlier minimum‑score overview (2024 FICO credit score distribution), waiting 3‑6 months while applying the five quick score‑boost tactics from section 5 usually yields a stronger application, lower interest rates, and access to a broader pool of HELOC providers;

however, when you need equity now - because of a renovation deadline, debt consolidation, or emergency - pursuing alternative financing such as a home‑equity loan from a credit‑union, a personal loan, or a HELOC from a specialist lender that accepts scores in the 580‑600 bracket (see section 7) can be faster, though often at higher rates and stricter LTV limits. Weigh the cost of higher interest against the urgency of funds, and remember that adding a co‑borrower with a solid score (section 8) may let you secure a HELOC now without waiting.