HELOC stands for home equity line of credit. Essentially, it is a revolving line of credit that uses the equity in your home as collateral. HELOCs can be a good option for those who need to borrow a lot of money at a low-interest rate. You will owe far less interest than using a credit card or personal loan. Using your home to secure the HELOC offers the lender great certainty that you’ll pay back your debt, and a valuable asset should you default.