The Best HELOC Rates and Lenders in Illinois

A home equity line of credit (HELOC) is a revolving credit line secured by the value of your home. Borrowers can take money out as needed up to the amount of their loan. Various expensive financial needs can be funded by this type of loan.

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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 2023

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.

  • Lender
    APR
    Loan Amount
    Min. Credit Score Requirement
    Repayment Terms
    Annual Fees
    Pre-Approval Time
  • 3.75% to 18%

    $25,000 to $1,000,000

    660

    10-year draw period
    and 20-year repayment period

    None

    N/A

  • Not specified

    Not specified

    Not specified

    Not specified

    Not specified

    Not specified

  • 1.99% special
    introductory variable
    APR for 6 months,
    then as low as
    4.35% variable

    $25,000 to $1,000,000

    Not specified

    10-year draw period,
    20-year repayment period

    Not specified

    Not specified

  • 3.65% to 8.80%

    $15,000 to $750,000

    730

    10-year draw period,
    unspecified repayment period

    $90

    Not specified

  • 4.65% to 9.99%

    $35,000 to $300,000

    620

    10 to 30 years

    None

    1 to 2 weeks

  • Starting at 3.99%

    $10,000 to $500,000

    Not specified

    10-year draw period
    and 20-year repayment period

    $75

    Not specified

  • Starting at 4.64%

    $10,000 to $500,000

    Not specified

    10-year draw period
    and 20-year repayment period

    None

    24 hours

  • Starting at 3.50%

    $15,000 to $400,000

    620

    5 to 30 years

    3% to 4.99%

    24 hours

  • Starting at Prime - 0.50%

    Starting at $17,500

    Not specified

    10-year draw period,
    15-year repayment period

    $50

    Not specified

  • Starting at 3.34%

    Starting at $25,000

    740

    Not specified

    $50

    Not specified

  • 3.49% for 6 months
    (4.08% thereafter)

    Starting at $5,000

    Not specified

    15-year draw period
    with 15-year repayment period

    None

    24 hours

  • 3.75% to 10.63% variable

    $10,000 to $500,000

    Not specified

    10-year draw period,
    and then 20 years for repayment

    None

    Not specified

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


  • Bank of America

    Bank of America offers a 1.99% special introductory variable APR for six months.


    • 1.99% special introductory variable APR for 6 months, then as low as 4.35% variableAPR Range
    • $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • NoneAnnual Fees
    • Not specifiedPre-Approval Time

    on Bank of America Website

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


  • U.S. Bank

    You may apply for a HELOC with U.S. Bank by phone, online or in person.


    • 4.20% to 9.35%APR Range
    • $15,000 to $750,000Loan Amount Range
    • 10-year draw period; unspecified repayment periodRepayment Terms
    • $90Annual Fees
    • Not specifiedPre-Approval Time

    on U.S. Bank Website

Best HELOC Lender for Bad Credit in Illinois: Figure


  • Figure

    Figure has one of the lowest credit score requirements for HELOCs.


    • From 6.55% to 15.54%APR Range
    • $15,000 to $400,000Loan Amount Range
    • 5 to 30 yearsRepayment Terms
    • NoneAnnual Fees
    • 24 hoursPre-Approval Time

    on Figure Website

Best HELOC Lender for Competitive Rates in Illinois: PenFed


  • PenFed Credit Union

    For qualifying customers, PenFed Credit Union offers the lowest APR.


    • 0.99% for 6 months; 4.25% to 18% thereafterAPR Range
    • $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • $99Annual Fees
    • N/APre-Approval Time

    on PenFed Credit Union Website

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.

  • HELOC
    Home Equity Loan
  • Interest Rate

    Adjustable interest rate,
    but fixed-rate options are available

    Fixed interest rate

  • Monthly Payment

    Changes depending
    on the amount of money borrowed

    Fixed monthly payments

  • Repayment Terms

    During the draw period, borrowers pay
    interest on the money they borrowed;
    after the draw period, they repay any
    principal owed in addition to interest

    Repayment starts as soon as
    the money is given to the borrower

  • Fund Disbursements

    Line of credit

    Lump sum delivery

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.

1

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.

2

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.

3

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.

4

Apply

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.

5

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.

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