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Get a Higher Line of Credit

It should be possible for most borrowers to get a higher line of credit fairly easily. Getting a higher line of credit is usually easy if you can demonstrate that you can pay it off.

Lenders usually base a line of credit on a borrower’s ability to pay it off. That means that those who can show they can pay more can usually get a higher line of credit. Lenders want to increase lines of credit because they make more money when a borrower gets a higher line of credit.

If your income has increased since you got your line of credit you should definitely try to get it increased. Showing your lender proof that your income has gone up can help you get a higher line of credit. Such proof can take the form of a bank statement.

Get a Higher Line of Bank Credit

If you have line of credit attached to your bank checking account you should be able to get it raised fairly easily. Banks usually base checking lines of credit on the amount of cash that it is run through a checking account. This means that you should be able to get your line of credit increased if your cash flow has increased.

A bank statement demonstrating that a business has a higher cash flow can be used to increase other lines of credit. Showing the bank statement to direct lenders and vendors that extend lines of credit can get them to increase lines of credit.

Putting more money into a bank account can also get the bank to raise the line of credit. Some banks will also give you a higher line of credit if you open new accounts or move existing accounts to their institutions.

Payment Can Raise Your Line of Credit

The best way to get a higher line of credit is to pay off the amounts you owe on an existing line of credit. Paying off lines of credit quickly and making regular payments will prove to the lender that you are capable of paying off your line of credit. It also makes you look like a good credit risk.

Paying off your line of credit can help you get your line of credit increased. A good time to ask your lender to increase your line of credit is after you’ve paid off a balance on an existing line of credit.

The more you pay on your existing lines of credit the easier it will be to get a higher line of credit.

Get a Higher Line of Equity Credit

Getting a higher line of credit on an equity line of credit such as a home equity line of credit is fairly easy. All you have to do is to increase the amount of equity that you have available.

Equity is the difference between the value of a piece of property and the amount it is mortgaged for. This means that if you pay off a mortgage, an equity loan or an existing line of credit you will have more equity. Even paying off part of a mortgage can increase your equity and help you get a higher line of credit.