What’s a good HELOC rate in South Carolina?

The interest rate on your home equity line of credit will be determined by several factors, including your credit score and the loan-to-value ratio. According to our research, PenFed Credit Union and Bank of America provide the most competitive interest rates in the state with introductory APRs of 0.99% and 1.99%, respectively.

What can I use a HELOC for in South Carolina?

South Carolina homeowners may use a home equity line of credit to fund renovations, repairs and other expenses.

Is HELOC interest tax-deductible in South Carolina?

The interest on a HELOC is often tax-deductible, but we recommend that you consult a financial advisor for further clarification.

How much money can I borrow with a HELOC in South Carolina?

The minimum and maximum allowable loan amounts vary per lender. In general, borrowers in South Carolina can obtain a loan from about $5,000 to $1,000,000.

Is HELOC better than a home equity loan (HELOAN)?

HELOCs and home equity loans may be excellent options, but the right one for you will depend on your situation. A HELOC is a revolving line of credit that allows you to withdraw funds up to a certain limit as needed, with just the amount borrowed being repaid. On the other hand, a home equity loan is provided as a lump sum with a fixed interest rate.

Are HELOC rates fixed?

HELOC rates vary based on various factors, including current interest rates, the amount borrowed, the repayment term and the property value.

The Best HELOC Rates and Lenders in South Carolina

A HELOC, or home equity line of credit, is a revolving line of credit backed by the equity in your home. HELOCs are ideal for individuals looking to consolidate debt or fund major purchases, such as education expenses or home renovations.

Advertising & Editorial DisclosureLast Updated: 12/6/2022

Edited By

Morgan Hull

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.

WHAT WE’RE GEEKING OUT ON

Home Equity Line of Credit Rates
Best HELOC Lender Overall in South Carolina
Best HELOC Lender for Good Credit in South Carolina
Best HELOC Lender for Bad Credit in South Carolina

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
PenFed Credit Union
3.75% to 18%
$25,000 to $1,000,000
660
10-year draw period
and 20-year repayment period
None
N/A
PNC Bank
Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
Bank of America
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
U.S. Bank
3.65% to 8.80%
$15,000 to $750,000
730
10-year draw period,
unspecified repayment period
$90
Not specified
Discover
4.65% to 9.99%
$35,000 to $300,000
620
10 to 30 years
None
1 to 2 weeks
Flagstar
Starting at 3.99%
$10,000 to $500,000
Not specified
10-year draw period
and 20-year repayment period
$75
Not specified
SunTrust/Truist
Starting at 4.64%
$10,000 to $500,000
Not specified
10-year draw period
and 20-year repayment period
None
24 hours
Figure
Starting at 3.50%
$15,000 to $400,000
620
5 to 30 years
3% to 4.99%
24 hours
Citizens Bank
Starting at Prime - 0.50%
Starting at $17,500
Not specified
10-year draw period,
15-year repayment period
$50
Not specified
TD Bank
Starting at 3.34%
Starting at $25,000
740
Not specified
$50
Not specified
Connexus Credit Union
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
Regions Bank
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 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.
- 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
MoneyGeek's best pick for HELOC lenders in South Carolina is Bank of America. This lender is best for homeowners that want a large amount of funds at relatively low interest rates.
Its initial variable APR of 1.99% is among the state's lowest. The subsequent starting variable rate of 4.35% after the initial six-month period is still relatively low. In addition, the high loan cap of $1,000,000 makes the lender an excellent choice for borrowers with greater funding needs.
However, Bank of America does not disclose the minimum credit score necessary to qualify, so you may be better off with a different HELOC provider. To determine whether you qualify, you should contact a Bank of America representative.
Pros
No annual fee
Fixed-rate option
Mobile application available
One of the lowest introductory APRs for six months
Interest rate discounts available

Cons
High maximum variable APR
Eligibility requirements not specified online
High minimum credit line
Minimum credit score requirement not specified online
APR: Introductory variable APR of 1.99% for six months; starting variable APR of 4.35% thereafter
Loan Amount: $25,000 to $1,000,000
Repayment Terms: 10-year draw period; 20-year repayment period
Minimum Credit Score: Not specified
Annual Fees: None
Pre-Approval Time: Not specified
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
- $15,000 to $750,000Loan Amount Range
- 10-year draw period; unspecified repayment periodRepayment Terms
- $90Annual Fees
- Not specifiedPre-Approval Time
Borrowers in South Carolina that have a credit score of at least 730 will get the best HELOC from U.S. Bank. The lender offers lines from $15,000 to $750,000 based on your credit history, equity and existing debts.
Customers who already have an existing checking or savings account with U.S. Bank and enroll in autopay may get a discount of 0.5%.
However, if you have a poor to fair credit score, you’ll want to look for a different lender. In addition, if your line is paid off or closed during the first 30 months, you'll have to pay an early closure charge of 1% of the initial loan value (up to $500).
Pros
No closing costs
High maximum loan amount
No application fee
Ability to apply over the phone, online or in person

Cons
Repayment period is unspecified
Annual fee
Early closure fee of 1% of the original line amount (maximum $500)
APR: 4.20% to 9.35%
Loan Amount: $15,000 to $750,000
Repayment Terms: 10-year draw period; unspecified repayment period
Minimum Credit Score: 730
Annual Fees: $90
Pre-Approval Time: Not specified
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
- $15,000 to $400,000Loan Amount Range
- 5 to 30 yearsRepayment Terms
- NoneAnnual Fees
- 24 hoursPre-Approval Time
South Carolina residents with credit scores as low as 620 will get the best HELOC from Figure. With a 30-year repayment term, the lender is ideal for those that need a longer time to repay their loans. The lender offers loan amounts ranging from $15,000 to $400,000 with a starting APR of 3.24%.
However, homeowners who want to avoid paying origination or recording fees may find that Figure isn't the ideal choice for them. If you require a loan amount greater than $400,000, you should also choose an alternative lender.
Pros
Low minimum credit score requirement
Fast funding process
Fast online application process
Low starting APRs
Pre-approval within 24 hours

Cons
No in-person branches
Origination fee
Relatively low maximum loan amount
APR: Starting at 3.24%
Loan Amount: $15,000 to $400,000
Repayment Terms: 5 to 30 years
Minimum Credit Score: 620
Annual Fees: None
Pre-Approval Time: 24 hours
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
- $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- $99Annual Fees
- N/APre-Approval Time
PenFed Credit Union is the best option for borrowers looking for a HELOC with competitive interest rates. After the introductory six-month period, the fixed-rate loan's interest rates start at 4.25% and never exceed 18%.
To those that qualify, the lender offers loan amounts ranging from $25,000 to $1,000,000. A potential annual fee of $99 applies if you don’t accrue $99 worth of interest over a twelve-month period. The lender’s fair minimum credit requirement of 660 may also make it difficult to qualify for a loan.
Pros
A+ BBB rating
Low introductory APR for six months
High maximum loan limit
Far minimum credit score requirement
Closing costs partially covered by lender

Cons
Potential annual fee
No online application
Potentially high APRs
APR: Introductory APR of 0.99% for six months; 4.25% to 18% thereafter
Loan Amount: $25,000 to $1,000,000
Repayment Terms: 10-year draw period; 20-year repayment period
Minimum Credit Score: 660
Annual Fee: $99 conditional
Pre-Approval Time: Not applicable
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,
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

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.