What Is Credit Line ? and How to Increase Credit limit ?

credit line

 

What is credit line ? credit line mean credit limit, it’s like term that most financial company will use to impress everyone! πŸ™‚ to be honest most of financial industry actually have cool term! and the reason why they do that, simply because they want cool name! i.e to make that industry to be admirable! πŸ˜€

yep! sound corny! but it’s true! πŸ˜€ for example if you watch carefully most forex industry most of the time, using weird language! e.g leverage, Spread, Hedging, Pivot, Carry, etc bla..bla..bla..! the idea is to impress rich people! because what most trader do actually is guessing! it could be right or it could wrong for most cases! but in order to make rich people calm down! forex practitioner always use foreign language! no doubt since forex means foreign..! πŸ˜€ lol!Β  but the point is, almost 99% financial industry always use exclusive words πŸ™‚Β Β  and to be honest with you! when i used weird language/words to argue! most of the time, it really work to make them believe! because obviously when people use exclusive words, people that talk to me, 99% will thinking about what heck is mean :D! lol!Β  yep! we make time lag! πŸ˜‰ lmao!

Here some sample!:

Why not change your leverage into maximum, and put stop loss, in order to minimize margin call! because sometime market create spike! especially when speculator trying to scalp markets!Β  but on the other hand you can get max profit and still maintain floating P/L! and also for track record it also can lower your drawdown rates, and make investor happy with your portfolio!

 

Unfortunately not only Forex industry that using unheard words! it could be insurance, mutual funds, Banks, Stocks and etc! but do you know why they do that ? πŸ˜‰ well, most financial product actually are high risk! and not only that! most of financial product actually are intangible! πŸ˜‰ so imagine if people from financial industry use common words ? πŸ˜‰ yep! most of you will not buy our promise! oops I mean premise πŸ˜€ lol!

anyway guys, back to topic! πŸ˜€ the important question from credit line actually is! How to Increase Credit limit ? if we talk about credit line or limit basically it’s based on many factor! but the most important factor are only 2-3! first is, trust! or credit score! secondly is capacity, and last is warranty or asset! if you have this 3 factor! after a few times doing business with them, your credit limit will increase!

For example! you want to get home loans, Credit Cards or even auto loans!Β  you have good credit score, also you have capacity to pay your debt! the last is, you have asset as warranty! and if something happen, bank, or finance company will take that asset and liquidate to cover your debt and interest rate!

at first doing business with bank, it could be hard, low limit, high interest rates and etc! because the biggest factor for them actually is trust score! or credit score! because no matter what, bank never believe in capacity(incomes) or warranty! because they learned asset and capacity can decrease over time! but trustΒ  it will never decrease! that’s why trust or credit scoreΒ  have more weight other than 2 factors! but trust can’tΒ  never be bought with money! πŸ˜€ because trust need times! and it can take year and years!

So the important question is how to increase credit limit ? well, the answer are quite simple! start small with them! pay on time, never late to pay your debt! do that for 1-2 years! after pay fully your debt! ask them to increase your limit! if you already doing business with them more than 1 years, believe it or not! all bank, have your credit history! and most them will happy doing business with you! and if you apply to different bank,Β  they will approve your application! as long there’s no late payment! then you safe!

In order to increase your credit line, actually you have to create something! it could be comparison, i.e using their competitor product, to threat or bluff them and get maximum credit limit ! here some sample you can do to increase your credit limit!

First build your credit history! 1 or 2 years! always pay your debt on time! if you already have credit history, try to apply with their competitor! and find best rates! most of the time, their competitor always accept your application! simply because you have good credit history! πŸ™‚ if you already have good credit score! ask more! better rates, better limit, low fee and etc! if they can’t give what you want! find other company! I am sure, you can find better company out there! and if you already find best offer from other company! then you can start to bluff! and if it fails! who cares! afterall. if you have better offer! what for, you use them and pay annual fee πŸ™‚ right ?

 

bottom line is, you can get better offer and increase your credit line, if you have good credit history! but you will not get that easily! but since you have good credit score! it can be a power to choose between the average and the best! use their competitor to bluff! trust me it always works πŸ˜€ and if didn’t works! don’t hold back to closed your account πŸ™‚Β  remember the key point in here is only accept the better offer from previous And not the other way around Hint! try credit union to get a half APR than bank! e.g auto loans average interest rate 5%, if you go to credit union you can get 1,99% !

 

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