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How To Access A Home Equity Line Of Credit

How To Access A Home Equity Line Of Credit

Many property owners who have accrued substantial home equity over the years will often choose to borrow against it to consolidate debt or remodel their home. This can be a smart move since home equity lines of credit often have significantly lower interest rates than other types of loans and the mortgage interest is tax-deductible. If you've been a responsible borrower who has made payments on time for a number of years, you should have no problems getting approved. Once approved however, what options are available to access your home equity line of credit?


After you finalize the paperwork and been approved for your home equity line of credit, within one to two weeks you should receive a checkbook in the mail to access the funds directly. This checkbook works exactly like your normal checking account except that the amounts for any checks will be deducted from your available credit and start accruing an interest expense like any other loan. This can be beneficial for many consumers looking to use their home equity line of credit for debt consolidation where writing a check is necessary to pay off balances.

Debit Card

It has also become common place for many financial institutions which offer home equity lines of credit to issue debit cards in addition to checkbooks. A debit card accessing a HELOC will function in a similar fashion to a regular ATM card or standard debit card. If you are issued a debit card you will receive a unique PIN which will allow you to withdraw funds from your line of credit up to the amount approved. If you are remodeling a kitchen and make frequent purchases at a home builder supply store then a debit card will usually be more convenient than checks.

In Person

While antiquated, many consumers feel more comfortable withdrawing funds from a HELOC by dealing directly with a teller at their bank or credit union. There may be times where this is necessary like if you're dealing in cash only transactions or require a cashiers check to make payment. Some businesses or individuals do not accept checks or have merchant accounts to process debit cards. Withdrawing funds in person may be your only option when making payment in some circumstances.

Wire Transfer

The Internet has made it more convenient to access home equity lines of credit than ever before. Since this line of credit is like any other account at your bank or credit union, you can log in to the financial institutions' website to transfer money between your bank and other financial accounts. You can also use it to pay bills online or conduct a wire transfer to an investment account if there are no limitations on how you use your home equity line of credit.