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Summary
Home Equity Line of Credit (HELOC) is a revolving loan that is taken out against the equity you own in a property. Many consumers go through an important decision on whether their home repairs/upgrades should be funded by using a HELOC or specific, low-interest rate Credit Cards. There can be Pros and Cons of using either approach.

Pros/Cons of Using Credit Cards for Home Repair
Usually the decision is quite simple, that HELOCs most often tend to have lower, more stable interest rates when compared to Credit Cards. However, for some individuals with great credit there are often credit card promotions that allow such consumers to take advantage of very low Balance Transfer deals.

Balance Transfers involve moving an outstanding balance from one credit card to another. This is usually done to obtain a lower interest rate on the outstanding balance. These promotional interest rates may indeed beat those provided by most HELOCs, however, the question is how long a consumer can continue to find credit cards that will provide such promotional rates, allowing them to continually transfer the home repair balance between several credit card lenders. Another aspect to keep in mind are the Balance Transfer Fees that many lenders charge for the actual transfer (usually a small percentage of the total balance).

Again, Credit Cards tend to involve higher interest rates, especially if there is a late payment and the card's interest rates increase dramatically. Be careful when choosing a long-term investment, like home repair, by using credit cards.

Pros/Cons of Using HELOCs
One major advantage that HELOCs have over credit cards is the potential tax deduction of the interest expense. A HELOC is a second mortgage and mortgage interest is a tax deductible expense. These tax deductions can apply for federal (IRS) and state taxes. You can look at this link at the IRS to see better understand if your mortgage interest can be deducted for federal tax purposes: IRS Publication 936, Home Mortgage Interest Deduction (external link),

Unless your credit is outstanding, a credit card often attaches a very high amount of interest to your balance per month. A HELOC is often a better way to get the money you need to use at your disposal without paying as high an interest rate. Make sure to see the article on HELOCs to better know what to look for in getting the right HELOC.

The amount of equity you have in your home is also not dependant on your credit score where the limit on your credit card is. This means you usually get a higher amount available to you when you take out the HELOC vs. a standard credit card (depending on how much equity you've built up in your home).

The major con of using a HELOC is that the loan is secured by your home. Meaning that if you default on your HELOC your house can be foreclosed on. This may sound redundant, but as always be careful and do your research.