Best HELOC Rates and Lenders in Illinois for 2024

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Edited byAshley Jacobs

Updated: December 28, 2023

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A HELOC can be used to consolidate debt or to cover large costs such as home improvements, college education and medical bills.

It's important to look around and compare various lenders before applying for a HELOC to obtain the best offer for your circumstances and needs. Currently, the initial HELOC rates vary from roughly 0.99% and can go all the way to 18% after the introductory period ends. Because of its low interest rates and incentives, MoneyGeek recommends Bank of America as the best overall HELOC lender in Illinois.


Home Equity Line of Credit (HELOC) Rates for 2024

The table below summarizes rates, payback terms and other essential details about HELOC lenders as of May 2022. This can be helpful as you research lenders.

Please keep in mind that the pricing and information included are subject to change. However, MoneyGeek updates this table regularly to show the most up-to-date information.


MoneyGeek’s Picks for Best HELOC Lenders in Illinois

MoneyGeek is concerned about you, the customer, and it is our objective to assist you in selecting the best HELOC lender for your needs.

As a result, it's important to point out that home equity line of credit loans aren't widely available. National banks are typically the only ones that issue them. If you've been turned down by a national lender, we recommend checking with your local credit union to see if they offer HELOCs.

Best Overall HELOC Lender in Illinois: Bank of America


Best HELOC Lender for Good Credit in Illinois: U.S. Bank


Best HELOC Lender for Bad Credit in Illinois: Figure


Best HELOC Lender for Competitive Rates in Illinois: PenFed


HELOC vs. Home Equity Loans

Although they may seem similar, a home equity loan (HELOAN) and a home equity line of credit (HELOC) are two separate products.

A homeowner can borrow against the value of their home with a home equity loan. Home equity loans also come with set interest rates and payback durations. The money is given to borrowers in one lump payment by the bank.

Meanwhile, HELOCs function similarly to credit cards. During the draw time, borrowers can withdraw a specific amount stipulated by the lender. Variable interest rates are also available on HELOCs. As a result, the borrower is not obligated to make set monthly installments throughout the payback period.

You can find out more about their differences in the table below.


How to Apply for a HELOC

Many lenders enable you to fill out forms online, making it easier to apply for a HELOC. Typically, you must first supply your personal information and contact information. Then, you must wait for the lender's approval.


Determine how much you need

HELOC loans are ideal for large expenses such as investments, debt consolidation and big purchases, among others. However, before settling on HELOC, you must first determine how much money you need. This type of loan is best for candidates who know exactly how much they need to borrow. It could even turn out that other types of loans are more suitable for your financial needs.


Assess your financial standing

Examine your financial situation to determine if you meet the borrowing requirements. This includes looking at your credit score, income and existing loan-to-value ratio, as these are all key elements that go into setting your rates. You can also determine if you have the financial means to repay what you owe by analyzing your financial situation.


Shop around and compare lenders

The best way to locate the best HELOC lender for your needs and circumstances is to research multiple lenders and compare their offerings. Examine their services, fees and terms. Consider the annual charges, closing fees and rate reductions charged by each lender.



In most cases, you can apply for a HELOC online. To save time, gather the information you'll need for your application. Verified documents such as bank statements, mortgage statements and proof of income may be required. Also, read your Truth-in-Lending declaration carefully and keep an eye out for any minimum and maximum balance limits.


Use funds wisely

Staying within your budget after you start withdrawing funds is the easiest way to prevent getting further into debt. Keep in mind that if you fall behind on your payments, your house may end up in foreclosure.

Frequently Asked Questions About HELOCs

It might be confusing to understand how to get a home equity line of credit (HELOC). MoneyGeek has answered some frequently asked questions regarding HELOCs to help you learn more.

The interest rate on your home equity line of credit is determined by several factors, including your home equity and creditworthiness. Due to their low initial APRs, MoneyGeek recommends Bank of America and PenFed Credit Union to borrowers looking for affordable HELOC loans in Illinois.

You can use your HELOC funds to pay major expenses in Illinois, such as home renovations, college tuition and debt payment.

A HELOC is generally tax-deductible, but you should see a financial counselor or an expert for more details. This will also help determine how much you need to budget.

The amount you may borrow in Illinois ranges from $5,000 to $1,000,000 depending on the lender and your credit score.

Which option is better for you will be determined by your loan purpose. With a HELOC, you pick when to use the cash, and you only pay interest on the amount you actually use. On the other hand, with a HELOAN, you receive a lump sum of cash at loan closing so that you know exactly how much your monthly fees will be and how long the loan will take to pay off.

Normally, no. Because a HELOC is a revolving line of credit, the interest rate varies based on the amount borrowed. However, some lenders will let you switch to a fixed rate.