Home Equity Line of Credit (HELOC)
A revolving line of credit secured by the equity in your home. Functions like a credit card in that you can borrow, repay, and borrow again up to your limit. HELOCs count toward your revolving credit utilization calculation. Interest is usually variable.
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Revolving Credit
A type of credit where you can borrow repeatedly up to a set limit, repay, and borrow again. Credit cards and lines of credit are revolving. Your credit utilization ratio — a major FICO factor — only applies to revolving credit accounts.
- Mortgage
A loan used to purchase or refinance real estate, where the property serves as collateral. Mortgages are installment loans with terms typically ranging from 10 to 30 years. Missing mortgage payments can lead to foreclosure. Minimum credit scores vary by loan type (FHA: 500, conventional: 620).
Frequently Asked Questions About Home Equity Line of Credit (HELOC)
What does Home Equity Line of Credit (HELOC) mean?
A revolving line of credit secured by the equity in your home. Functions like a credit card in that you can borrow, repay, and borrow again up to your limit. HELOCs count toward your revolving credit utilization calculation. Interest is usually variable.
Is Home Equity Line of Credit (HELOC) important for my FICO® score?
Understanding Home Equity Line of Credit (HELOC) helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.