Home equity loan vs. credit card: Which is better now that the Fed's cutting rates?

Homeowners should closely compare their credit card and home equity loan options before borrowing with either now. damircudic/Getty Images

Credit cards are ubiquitous. They're familiar, easy to use and convenient for covering the rising costs of everyday expenses .

Home equity loans , on the other hand, have a reputation for being more appropriate for big expenses. And, unlike a credit card, which is already conveniently in your wallet, you'll need to complete pages of documentation and may even need an appraisal completed on your home to get approved.

But the current economic climate requires that borrowers in need of large amounts of financing revisit both products. What may have been advantageous in a different economy may not be so now, and vice versa. This is especially