Line of Credit

Business
Get a Line of Credit
Line of Credit
Others
Payment
Rate
Raise Your Line of Credit

It is possible to raise your line of credit if you know how to negotiate with your lender.

Most lines of credit can be increased if the borrower is able to show the lender that they can payback the additional credit requested. A borrower who is able to do this should be able get their line of credit raised.

Your ability to raise your line of credit will be affected by your income, your credit history, your history of paying back past lines of credit and other factors. If any of these factors has improved since you opened your line of credit you should be able to get an increase in your line of credit.

When to ask for a Higher Line of Credit

The best time to ask your lender to raise your line of credit is when your situation has improved. If your income or business’s cash flow has increased significantly or your credit rating has improved it is a good time to ask for a higher line of credit.

If you have a bank line of credit watch your bank statement to see if the amount of money being running through your accounts has increased. If the amount of money running through your checking account has gone up you should ask the bank to raise your line of credit.

If you have lines of credit from lenders other than your bank you could show them your bank statement as proof you can handle a higher line of credit. A bank statement that shows more cash flow is proof that you actually have the money. This is what lenders, especially hard money lenders; are looking for.

You should also watch your credit rating by getting your credit report on a regular basis. If your credit rating improves you should ask for a higher line of credit. You might be able to get a lender to raise a home equity or real estate line of credit if your credit rating goes up.

Other Ways to Raise Your Line of Credit

If you have a home equity line of credit you should be able to raise it by increasing the amount of equity you have in your home. Equity is the difference between the value of your home and the principal of your mortgage.

The more you have your home mortgaged for the less equity you’ll have. This means that you can increase the amount of equity you have by paying off your mortgage, home equity loans and home equity lines of credit. If you can pay off a large percentage of your mortgage you should be able to increase your equity and your line of credit. Just doubling your mortgage payment for a few months or paying off a home equity loan can give you more equity.

Once you’ve increased the equity in your home you can contact your lender and ask for a higher line of credit. The lender should be willing to raise your line of credit when you have more equity available. You should be able to do this with any equity line of credit you have on any real estate you own.

Why You Should Raise Your Line of Credit

Even if you don’t plan to use the additional credit you should try and raise your line of credit. The reason you should do this that you don’t have to use a line of credit.

Raising your line of credit won’t cost you anything but it will give you additional financing that you can access quickly if you need it. Getting a higher line of credit will mean that you have emergency financing available when you need it.