Key takeaways You typically need better credit to qualify for a home equity loan than a mortgage, but some lenders will still approve you with a score as low as 620. If your credit score isn’t ideal, you may still qualify for a home equity loan, but you’ll likely pay a higher interest rate. Strategies for potentially obtaining a loan despite lower credit include applying with a co-borrower, applying with your current financial institution and writing a letter of explanation to the lender. Can you get a home equity loan with bad credit? Yes, you can. Having a lower credit score doesn’t necessarily mean a lender will deny you a home equity loan . Some home equity lenders allow for FICO scores in the “fair” range (the lower 600s) as long as you meet other requirements around debt, equity and income. What are “good” and “bad” credit scores for home equity loans? Most home equity lenders require a score in the “fair” range or higher.…