When you’re faced with a big expense, a 0% interest purchase credit card is often the first thing that comes to mind. It feels familiar, flexible and, on the surface at least, free. For plenty of smaller or one-off purchases, that approach can work well.
But many of the costs homeowners deal with don’t stay small for long. School fees, home improvements, extensions or major renovation work can quickly stretch beyond what a typical credit card will cover. Even with a generous limit, a card isn’t always designed to support spending of that size, especially when it needs to be spread over time.
If you’re a homeowner, there’s another option worth knowing about. A HELOC, or Home Equity Line of Credit, can give you access to a larger and more flexible form of credit, using the equity in your home, and it’s designed to help manage bigger costs over several years rather than just a short promotional window.
When large expenses exceed what a credit card can realistically handle
Credit cards are brilliant for everyday spending and short-term borrowing. But they can start to feel restrictive when you’re dealing with larger, unavoidable costs. School fees, for example, don’t stop after one payment, and home improvement projects often cost far more than initially planned.
When expenses start to push past a single card limit, things can get complicated. You might end up spreading costs across multiple cards, watching different promotional periods, or worrying about what happens when those 0% deals end. A HELOC works differently. Because it’s linked to the equity in your home rather than an unsecured credit limit, it can offer homeowners access to a larger pot of credit that’s better suited to these kinds of expenses.
Extra flexibility for costs that don’t happen all at once
Big expenses rarely arrive in one neat transaction. Renovation work often involves deposits, staged payments and the occasional surprise cost along the way. School fees arrive term by term, not all at once.
With a 0% purchase card, the clock usually starts ticking as soon as the account is opened, even if the limit hasn’t all been used yet. That can create pressure to move faster than you’d like. A HELOC gives you more breathing space. You can draw down funds when you actually need them and only pay interest and repayments on what you’ve used, which makes it easier to deal with costs that build up gradually.
A more sustainable way to spread costs over several years
0% credit cards are designed for short-term borrowing. They work best when everything goes exactly to plan and the balance is cleared before the offer ends. If it isn’t, the interest rate can jump sharply, often to over 30% APR, which can quickly change the overall cost.
A HELOC is built with longer-term borrowing in mind. Because it’s secured against your home, the interest rate is usually much lower than standard credit-card rates. For expenses that take years rather than months to repay, this can make budgeting easier and the total cost more predictable.
Designed for homeowners with bigger financial needs
Homeownership often brings bigger financial responsibilities, and many of them are hard to avoid. A HELOC recognises that by giving homeowners access to the value they’ve built up in their property, rather than relying solely on short-term unsecured credit.
Once it’s in place, a HELOC can be used, repaid and reused over the flexible draw period (2-5 years). That means you’re not constantly applying for new cards or worrying about whether you’ll qualify for the next balance transfer. For some homeowners, it becomes a flexible financial tool rather than a one-off solution.
When a credit card may still be enough
That doesn’t mean credit cards don’t have a place. A 0% purchase card can still make sense if the cost is well within your credit limit and you’re confident you can clear the balance before the promotional period ends.
But when costs are larger, ongoing or spread over several years, it’s worth remembering that homeowners have another option available.
The takeaway for homeowners
If you own your home, a credit card isn’t the only way to spread the cost of a big expense. A HELOC can offer similar flexibility, a larger borrowing capacity and, in many cases, a cheaper way to manage costs over the longer term.
It’s not right for everyone. Because a HELOC is a second charge mortgage (also known as a secured loan), your home is at risk if you don’t keep up repayments. But used thoughtfully, it can give homeowners extra flexibility when a credit card simply isn’t enough.
💡 If you think a HELOC is the one for you: get a quote here
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
