> Works like a credit card. The difference is that the metaphorical credit card ...

theandrewbailey on March 23, 2022 | parent | context | favorite | on: Ask HN: How likely are we to see a financial crash...

> Works like a credit card.

The difference is that the metaphorical credit card of a HELOC has the house as collateral. A normal credit card has no collateral. If you go bankrupt, the HELOC takes the house, but the credit card doesn't.