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Personal loan vs HELOC

Personal loans and HELOCs both give you cash for a large expense — but they work very differently. Here's a side-by-side comparison to help you decide.

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Feature
Personal loan
HELOC
Secured by your home
No
Yes
Typical APR range
8%–24%
8%–12%
Speed to funding
1–3 days
2–6 weeks
Credit needed
Fair or better
Good + home equity
Payment predictability
Fixed monthly payment
Variable, can rise
Risk if you don't pay
Credit damage, collections
Foreclosure of your home
Our take

Choose a personal loan when you want a fast, fixed-rate payoff and don't want to put your home on the line. Choose a HELOC when you have strong equity, want the lowest rate, and can handle variable payments.

Common questions

Which is faster to fund?

Personal loans typically fund in 1–3 business days. HELOCs take 2–6 weeks due to appraisal and title work.

Which has the lower rate?

HELOCs almost always have a lower APR because your home secures the debt.