In a direct HELOC vs personal line of credit comparison, both options have pros and cons. HELOCs provide larger credit limits and lower interest rates, but the lender could repossess your home if you can't afford repayments. While an unsecured line of credit may have a higher interest rate, it doesn't come with the risk of losing your home. You'll also need to be a homeowner with sufficient equity in your home to qualify for a HELOC.