Home Equity Lines of Credit Like a home equity loan, a home equity line of credit — commonly known as a HELOC —requires the borrower to use his home as collateral for the loan. The HELOC, however, works much differently. It is a revolving line of credit, much like a credit card, against which the homeowner can borrow by writing a check or using a check card connected to the account. The credit can be used as needed, however, the total amount that can be borrowed is set much like the Home Equity loan. Because a HELOC is a line of credit, the borrower makes payments only on the amount actually borrowed, not the full amount available, which can be an advantage for many people. Also, even after paying down a HELOC, the homeowner can re-borrow amounts up to the credit limit of the HELOC. Benchmark Community Bank tries to make the advice on its Financial Answer Center as useful and reliable as possible. Information has been gleaned from a number of expert resources. However, the purpose of this advice section of the website is to provide customers and visitors with general guidance and useful tips only. It doesn’t necessarily deal with every important topic or cover every aspect of the topics with which it deals and might not be relevant or appropriate in all circumstances. It is not designed to provide professional advice and should not be relied on as such. If in any doubt, you should consult an appropriately qualified expert for specific advice before acting on any of the information contained in the Answer Center.