A HELOC or Home Equity Line of Credit is a credit line that is secured by a second deed of trust on the borrower's house. Equity lines of credit are revolving accounts that function like a credit card, that can be paid down or charged up for the term of the loan. There is a minimum payment due every month which is interest only. Many homeowners only use home equity line of credit for home improvements, and medical bills, but not for every day expenses. The lender will examine your income, other debts, and credit history to decide your appropriate credit limit. Many home equity lines of credit allow the borrower to use designated checks to withdraw or spend money from the line of credit. HELOC's usually use an adjustable rate.