HELOC (Home Equity Line of Credit)
A revolving line of credit secured by your home equity. APRs are typically lower than personal loans, but the home is collateral.
Full definition
A HELOC (Home Equity Line of Credit) is a revolving line of credit secured by the equity in your home. APRs are typically variable and lower than unsecured personal-loan rates because the home serves as collateral. HELOCs are common for home improvement and large planned expenses. The downside: the lender can foreclose on default, and closing takes weeks rather than days.
- Written by
- Get Advance Loan Editorial Team
- Reviewed by
- Compliance Review
- Published
- January 15, 2026
- Last reviewed
- May 22, 2026
- Personal loanAn unsecured installment loan that can be used for almost any personal purpose. The most flexible mainstream U.S. consumer-loan product.
- Unsecured loanA loan that doesn't require collateral. The lender relies on your credit and income to underwrite. Most personal loans are unsecured.
- Secured loanA loan backed by collateral the lender can seize on default. Auto loans, mortgages, and HELOCs are secured. APRs are lower than for unsecured loans.
- Credit unionA member-owned, not-for-profit financial cooperative. Often offers lower personal-loan APRs than banks for the same credit profile.
- Online lenderA lender that originates and services loans entirely online. Decisions in minutes; funding as fast as the next business day.
- Marketplace lenderA platform that matches borrowers with multiple lenders from a single application, so you can compare offers without applying separately.
Ready to apply this knowledge?
Compare personal loan offers in two minutes. Soft credit check only, no impact to your score.
Begin your request