HELOCs function similarly to credit cards, enabling homeowners to borrow money based on the equity in their home and repay it over time. It’s best for financially stable homeowners who need extra funds to pay off debt or make significant expenses.
The interest rate on a HELOC is often substantially lower than a traditional fixed-rate loan, and repayment terms range from 5 to 30 years.
MoneyGeek evaluated different lenders in South Carolina to find the best one for distinct borrower profiles. According to MoneyGeek’s research, interest rates in South Carolina range from 0.99% to 18%. We also identified Bank of America as the best overall HELOC lender.
However, the best lender for you may be different depending on your financial situation and needs. As such, we recommend that you compare the rates and terms of different lenders before applying for a HELOC.
Home Equity Line of Credit (HELOC) Rates for 2023
The table below provides an overview of different lenders’ interest rates, repayment terms, annual fees and other important information as of May 2022. Although MoneyGeek regularly updates its pages as new information becomes available, it’s important to note that rates and terms are constantly changing. You should always verify any rates or terms with your chosen provider.
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 | None | N/A | |
Not specified | Not specified | Not specified | Not specified | Not specified | Not specified | |
1.99% special | $25,000 to $1,000,000 | Not specified | 10-year draw period, | Not specified | Not specified | |
3.65% to 8.80% | $15,000 to $750,000 | 730 | 10-year draw period, | $90 | Not specified | |
Starting at 3.99% | $10,000 to $500,000 | Not specified | 10-year draw period | $75 | Not specified | |
Starting at 4.64% | $10,000 to $500,000 | Not specified | 10-year draw 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, | $50 | Not specified | |
Starting at 3.34% | Starting at $25,000 | 740 | Not specified | $50 | Not specified | |
3.49% for 6 months | Starting at $5,000 | Not specified | 15-year draw period | None | 24 hours | |
3.75% to 10.63% variable | $10,000 to $500,000 | Not specified | 10-year draw period, | None | Not specified |
MoneyGeek’s Picks for Best HELOC Lenders in South Carolina
MoneyGeek has compiled a list of the best home equity line of credit lenders in South Carolina to make it easier for you to choose the one that's right for you.
Few lenders provide HELOCs, and those that do tend to be national banks that only offer it to individuals with good to excellent credit. MoneyGeek suggests checking with your local credit unions if a national lender rejects your HELOC application.
Best Overall HELOC Lender in South Carolina: Bank of America
- Bank of America
Bank of America offers high loan amounts — up to $1,000,000 — to qualified borrowers.
- 6.740% for 6 months, then 9.550%APR Range
- Not specifiedMinimum Credit Score
- $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 South Carolina: U.S. Bank
- U.S. Bank
Provides consumers with flexible ways to apply for loans.
- 4.20% to 9.35%APR Range
- 730Minimum Credit Score
- $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 South Carolina: Figure
- Figure
Figure’s low minimum credit score requirement is ideal for borrowers with credit scores as low as 620.
- From 6.55% to 15.54%APR Range
- 620Minimum Credit Score
- $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 South Carolina: PenFed
- PenFed Credit Union
Borrowers can receive a HELOC from PenFed at a low introductory APR of 0.99% for the first six months.
- 0.99% for 6 months; 4.25% to 18% thereafterAPR Range
- 660Minimum Credit Score
- $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- $99Annual Fees
- Not SpecifiedPre-Approval Time
on PenFed Credit Union Website
HELOC vs. Home Equity Loans
Although home equity loans (HELOANs) and HELOCs are similar in that they both use your home as collateral, they have distinct differences that make them better suited for certain borrower types.
A HELOAN has a predetermined interest rate and repayment period. The borrower receives funds in a lump sum. This is best for those that find it difficult to manage their spending.
On the other hand, a HELOC is similar to a credit card in that it allows the owner to make periodic withdrawals up to a specific limit. This loan has no fixed monthly payment since it has a variable interest rate.
You can learn more about the differences between HELOCs and HELOANs in the table below.
HELOC | Home Equity Loan | |
|---|---|---|
Interest Rate | Adjustable interest rate, | Fixed interest rate |
Monthly Payment | Changes depending on | Fixed monthly payments |
Repayment Terms | During the draw period, borrowers pay | Repayment starts as soon as |
Fund Disbursements | Line of credit | Lump sum delivery |
How to Apply for a HELOC
Applying for a HELOC is easy because most lenders allow online applications. You can simply submit your information online and wait for the lender’s decision.
MoneyGeek outlined the steps you should take before you apply for a HELOC.
Determine how much you need
You should estimate the amount of credit you need based on your intended use of the HELOC. A HELOC may be widely used for different financial needs, such as debt consolidation, home improvements and education expenses.
Assess your financial standing
It’s best to evaluate your current financial situation before taking out a HELOC. You should look at your credit score, existing debt and current income to decide if a HELOC is the right option for you. You might consider improving your credit score before applying to receive a lower interest rate on your HELOC.
Shop around and compare lenders
After deciding how much money you need and assessing your finances, it’s time to research different lenders. When choosing a lender, it’s important to consider factors such as interest rates, fees (if any), payback periods, maximum loan-to-value ratios, etc. Make sure to consider all of these criteria before selecting a company.
Apply
It's time to fill out an application when you've found a lender that meets your needs. Filling out an application usually takes approximately 15 minutes. To be approved for a home equity line of credit, you must provide documents such as pay stubs, bank statements, tax returns and other necessary information.
Use funds wisely
After your funds have been distributed, it's important to keep track of your spending to avoid further debt. Keep in mind that defaulting on your loan payments might result in losing your home.
Frequently Asked Questions About HELOCs
For first-time borrowers, understanding how a home equity line of credit works might be challenging. To help you understand more about the topic, MoneyGeek answered some of the most commonly asked questions below.
sources
- Bank of America. "Home Equity." Accessed June 22, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 22, 2022.
- Figure. "Get a Home Equity Line." Accessed June 13, 2022.
- PenFed Credit Union. "PenFed Home Equity Line of Credit (HELOC)." Accessed June 22, 2022.