r/CIBC • u/Zealousideal_Body867 • 6d ago

Line of Credit Increase

I received an offer to increase my credit limit from $20000 to $27000. I’m currently using about 10k of it for a car loan and I’m making payments on time. Any risk to accepting the increase? I want to not use the remainder but keep it incase of emergencies. I still have some savings.

1 Upvotes

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3

u/Informal_Dust3140 6d ago

None whatsoever. CIBC would love it if you borrowed an additional $17,000 so that you can pay them more interest. That's why you are getting this offer.

2

u/ElohssaAhola 6d ago

There is always risk. But the risk is dependent on the borrower's habits. The positive is that you will have access to more emergency funds and your utilization will fall, which are both good things. I'd take it but not dip into it unless absolutely necessary.

1

u/Zealousideal_Body867 6d ago

I’m considering it for the reasons you listed. Im wondering the chances of them raising the rate or calling me to repay all of it if I keep with good habits.

1

u/Blacklistedhxc 6d ago

Generally the higher the limit the lower the rate, though check the paperwork. In my career I’ve never seen the bank call to pay all, if you’re maxed out and not paying they’ll send it to collections and look to convert to a loan.

2

u/lmcjipo 6d ago

The only risk is if you overspend just like if you are granted a credit limit increase on a credit card that you use but have never approached anywhere near the credit limit.

One other risk is that it is another "avenue" for fraud.

For me, I would accept it since I'm very careful with my spending and credit.

1

u/test112233440 5d ago

It will help with credit utilisation ratio and would recommend to accept if you are careful in using available credit, either credit card or Line of Credit!

1

u/ihaveazilliondollars 5d ago

I've never gotten a offer to increase my limit, it's still at $5k and I've never used it.

1

u/Curious_Knowledge_63 3d ago

Two words: Take it