Did you know that you could have a powerful financial tool at your disposal as part of your everyday banking? If you've got a Home Equity Line of Credit (HELOC) that you haven't used yet, you're not alone. Many homeowners hesitate to tap into this flexible resource, unsure of its benefits or how to use it wisely. Let's shed some light on your HELOC and its potential to empower your financial future.

Your HELOC: more than just a loan

A HELOC goes beyond a standard line of credit, with unique perks that can help fund your next goal.

• Lower interest rates. In today's market, a HELOC can be a savvy borrowing choice. Imagine consolidating your high-interest credit card debt (let's say, 18% annual percentage rate) into a HELOC with a rate of 6.5%. On a $10,000 balance, that's a potential interest saving of over $1,000 per year.
• Flexible access to funds. Unlike a personal loan, which gives you a lump sum, a HELOC lets you borrow what you need, when you need it, up to your approved amount. Need $5,000 for a kitchen upgrade? No problem. A few years later, want to borrow another $10,000 for tuition? Or maybe an emergency comes up and you need finances to fall back on right away? You've got it—all from the same line of credit.
• Credit score booster. Using your HELOC responsibly—by making payments on time and keeping your balance low—can actually improve your credit score. Think of it as a way to build your financial strength while achieving your goals.

Smart ways to use your HELOC

• Create your dream home. Whatever’s on your renovation wishlist, your HELOC can help you turn your house into a home you truly love.
• Conquer high-interest debt. Looking for a better way to manage credit card balances or other loans? Having a hard time managing credit card balances or other loans? A HELOC can be used to consolidate debt that may have a higher interest rate, freeing up cash flow and reducing stress.
• Invest in education. A HELOC can launch personal growth or career advancement. Use it to finance your own continuing education, your children's tuition or even specialized training courses.
• Navigate financial challenges. Whether it's for unexpected medical bills, car repairs or temporary income loss, having a HELOC means you have a financial safety net in place.
• Maximize investment opportunities. Sometimes, great investment opportunities arise unexpectedly. With a HELOC, you have the flexibility to act quickly and potentially grow your wealth.

• Budget wisely. Treat your HELOC like a debit card, not a blank check. Set clear spending limits and track your usage.
• Make regular payments. Even if you're only making interest payments initially, aim to pay down the principal as soon as possible.
• Monitor your credit score. Regular, on-time payments on your HELOC can boost your score, but missing payments can damage it—be mindful of your usage.

Ready to fuel your next goal?

Your HELOC could help. Book an appointment with one of our experts to explore what’s possible.