Yousef has been approved for a type of revolving account where a lender uses a Yousef’s home as a guarantee that he’ll pay back the money he borrows. What do we call this type of revolving credit account?

Question

Yousef has been approved for a type of revolving account where a lender uses a Yousef’s home as a guarantee that he’ll pay back the money he borrows. What do we call this type of revolving credit account?

(1 point)
Responses

bank credit card

bank credit card

home equity line of credit

home equity line of credit

credit card issued by another entity

credit card issued by another entity

personal debit card

Answer 1

home equity line of credit

Answer 2

The type of revolving credit account that Yousef has been approved for, where a lender uses Yousef's home as a guarantee, is called a home equity line of credit.

Answer 3

The type of revolving credit account where a lender uses a person's home as a guarantee is called a "home equity line of credit" or HELOC. This account allows the borrower to borrow money up to a certain limit based on the equity they have in their home. The lender can use the home as collateral to ensure that the borrowed money will be repaid.