HELOCs work best when you need to borrow over an extended period, when you don’t know how much you’ll need, or when you just want the ability to borrow in an emergency. Here are examples of good uses for a HELOC: College tuition that you pay over several years Ongoing home renovations taking place in stages Emergency cash for your small business Medical costs for a long-term illness On the other hand, if you’re borrowing to buy a vacation home, consolidate high-interest debt, or pay for an expensive medical procedure, a fixed-rate home equity loan or fixed-rate HELOC might be better choices.