Since HELOCs are secured by your home, meaning that the lender can foreclose on you if you decide not to pay back the loan, they often come with better interest rates than most traditional credit cards. However, their interest rates are adjustable, so you'll want to be sure to pay close attention to how much interest you could be paying over the life of the loan.
How does it work?
HELOCs handle repayment a little differently than traditional credit cards. Instead of paying off as much of the balance as possible each month, this type of credit comes with two separate payment periods, each with their own set of rules.
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