A home equity line of credit (HELOC) is a great way to use the equity you have built up in your home to finance home renovation projects, pay for college tuition, consolidate debt, pay for unexpected medical costs, and more. Once you have secured a HELOC, you have a specific amount of time to use the funds – the “draw period” – which depends on the terms you agree on. Many people secure a HELOC before they even need it so they have peace of mind that it’s ready when they do. When this time comes, a common question is “How do I access the funds?”.
Having a checking account with the financial institution your HELOC is with makes the process much easier, but it is not required. There are several ways to access the funds with or without a checking account. Here’s an overview of the different ways you can access your HELOC.
Accessing HELOC funds with a checking account
Withdrawing HELOC funds using a checking account with the financial institution that issued the line of credit is very simple. You can easily access your line of credit by requesting funds be transferred from your line to your checking account or simply utilizing your online banking to transfer them. You can also request a wire transfer to a merchant.
Accessing HELOC funds without a checking account
If you don’t have a checking account with the financial institution that has issued the HELOC, there are a few extra steps to accessing your HELOC funds. You have the option to order checks to be written directly off of your HELOC, or you can also request a bank cashier’s check to be issued to a creditor or to yourself.
Benefits of banking with your HELOC provider
Having a checking account with your HELOC provider not only saves you a step when you access the funds, it also ensures all your questions related to HELOC approval, transferring and use of funds, draw periods, and re-approvals can all be answered by one institution. Additionally, if your financial institution rewards you for having more products and services with them – like Bankers Trust with Benefits Banking – you can earn more benefits for keeping your products in one place.