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Higher Line of Credit

It is possible to get a higher line of credit than you already have. Getting a higher line of credit increases the amount of money that you can borrow and your ability to cope with emergency expenses or expenditures.

Your capacity to get a higher line of credit will depend on a number of factors including the amount of credit you have, your credit rating and the income you have able. Generally, lenders will increase your line of credit if you can demonstrate that you have more money available. Many lenders will increase a line of credit if a borrower’s credit rating has improved.

If you have an equity line of credit such as a home equity line of credit you should be able to increase by raising the amount of equity you have. A person should be able to raise their home equity line of credit by paying off a percentage of their mortgage or money owed on an existing home equity line of credit. If you can’t increase the amount of equity you have probably won’t be able to raise your equity line of credit.

Getting a Higher Cash Line of Credit

Banks usually base the amount of credit available to businesses on the amount of money they run through their accounts. Many banks will raise a business’s line of credit if it runs more cash through its checking account. This is usually called a “cash” or checking line of credit, it is often accessible via a credit card.

This means that a business might be able to get a higher line of credit by running cash through its checking accounts. Taking money out of a savings account or investments and putting it in a checking account with a cash line of credit could raise that line of credit.

Banks may also increase a cash line of credit for good customers with a good credit rating and no history of defaults at request. If you’ve done a lot of business with a bank for years it might be a good idea to call the bank and ask if you can get a higher line of credit.

A good way to do this might be to mention the possibility that you’ll take your business to another bank if you don’t get the line of credit you want. If your existing bank doesn’t give you the line of credit you want, you should contact some other banks and ask if they will give you a higher line of credit if you transfer your accounts there.

Banks want your business so there’s a good possibility that they might give you a higher line of credit to get or keep your business.

Other Higher Lines of Credit 

If you are dealing with lenders than banks you should also be able to get a higher line of credit. If you’ve had a line of credit from a vendor, a supplier, a direct lender or an internet for awhile you might be able to get it raised.

One good suggestion is to pay off everything you owe on the line of credit before asking to get it raised. This proves that you’re willing to repay what you’ve borrowed. It also demonstrates that you are a good risk for a line of credit. If you have a record of paying off past debts you’ll have a better chance of getting a higher line of credit.

If you can’t get a higher line of credit mention the possibility that you’ll take your business elsewhere if you don’t get a higher line of credit. Like banks lenders may change their minds if they think they’ll lose your business.

Shop Around

Before seeking a higher line of credit it might be a good idea to shop around. Go online and look at the lines of credit being made available by other lenders. If you see some better offers write them down and keep that information available.

That way you’ll know where to go to get a higher line of credit. You’ll also have examples of higher lines of credit you can show existing lenders to prove you’re serious about changing.