A home equity line of credit (HELOC) gives homeowners a revolving credit line for large purchases. It’s similar to a credit card because you can borrow money up to a certain amount that is set by the lender and then pay it back with interest. HELOCs are usually helpful when a homeowner wants to do renovations on the home or consolidate high interest credit cards. It’s useful for homeowners because it can provide more flexibility because homeowners can withdraw and make payments on a daily or weekly basis.