A home equity line of credit or HELOC is a revolving line of credit that uses the equity of your home as collateral. HELOCs are most commonly used when you need access to your home's equity over the next six years. Whereas, a home equity loan is a close-ended loan. As you pay off a home equity loan, the balance decreases and you receive your funds when you are approved for the loan. Home Equity Loans and HELOCs can be used for home improvement, debt consolidation or other high costs like college tuition.