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Minimum Line of Credit

The minimum line of credit is the lowest possible line of credit that a borrower can get from a lender.

Generally, borrowers should try to avoid the minimum line of credit because it is a very bad deal. The minimum line of credit gives a borrower a very low amount of credit and usually comes with a much higher interest rate.

In many cases a minimum line of credit actually costs a borrower more than the amount of credit they received. It is always a good idea for borrowers to avoid getting the minimum line of credit.

Avoid the Minimum Line of Credit

Those with low credit scores will often be forced to get the minimum line of credit. Many lenders will only give those with bad or poor credit scores the minimum line of credit.

One trick that those with bad or poor lines of credit have to look out for is online lenders that promise to give anyone a line of credit. In exchange for high interest rates and fees these lenders will simply make the minimum line of credit available. The fees and interest rates on these online lines of credit will often exceed the amount of credit available.

Many credit cards come only with the minimum line of credit. These credit cards usually have high fees and interest rates. As with the online lenders the credit card companies try to trick people with bad credit into taking out these cards because they make quite a bit of money off of them. 

Increase the Minimum Line of Credit

It is possible for a borrower to increase the minimum line of credit. The easiest way to do this is to pay off the balance on a line of credit. When the balance is paid off the line of credit is increased.

A way for a person with bad or poor credit to get more credit is to open a line of credit and add money to it. Paying more than the minimum on a line of credit or credit card can increase the amount of credit available.

Many banks have checking accounts connected to lines of credit. These lines of credit can be increased if more money is run through the bank account. Increasing the minimum line of credit on these accounts can make it easy to do business.

Minimum Line of Credit

Borrowers should read the terms of line of credit agreements carefully to make sure they aren’t being tricked into getting the minimum line of credit.

When looking at a line of credit agreement borrowers should look for the words minimum line of credit.  Learning what the minimum line of credit is can show a borrower if a line of credit is a good deal or not. Reading the fine print can also help a lender avoid being required to get the minimum line of credit.