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How Do I Increase My Credit Card Limit?

May 27, 2024

Key Takeaways

To increase your credit card limit in Singapore, understand the criteria set by banks and the Monetary Authority of Singapore (MAS). Steps include negotiating a temporary increase, requesting a credit limit review with proof of increased income, making advance payments, or applying for another credit card. Choose between permanent and temporary increases based on your financial needs and stability.

Have you ever tried to make a big purchase but found your credit card limit wasn’t enough?

Whether it’s a new washing machine, a dream vacation, or an emergency expense, having a higher credit limit can make life a lot easier.

But how do you get your bank to increase your limit?

Understanding the process and knowing what steps to take can seem confusing at first.

Fortunately, it’s not as complicated as it sounds. In this article, we’ll break down everything you need to know about increasing your credit card limit in Singapore.

From how your credit limit is calculated to the best ways to request an increase, we’ve got you covered. Read on to learn how you can boost your spending power without hassle.

How Is My Credit Limit Calculated in Singapore?

Understanding how your credit limit is calculated is the first step in managing and potentially increasing it.

In Singapore, credit card limits are set by financial institutions (FIs) but must adhere to guidelines from the Monetary Authority of Singapore (MAS). These limits are designed to ensure that individuals do not borrow beyond their means.

Criteria for Individuals Below 55 Years Old

For individuals under 55, the calculation of credit limits is largely based on annual income:

  • Annual Income Below S$30,000: If your annual income is below S$30,000, your credit limit is capped at up to twice your monthly income.

This means if you earn S$2,500 a month, your credit limit will be a maximum of S$5,000.

  • Annual Income Between S$30,000 and S$120,000: For those earning between S$30,000 and S$120,000 annually, the credit limit can be up to four times your monthly income. For example, if your monthly income is S$5,000, your credit limit could be as high as S$20,000.
  • Annual Income Above S$120,000: Individuals with an annual income exceeding S$120,000 have no regulatory credit limit, giving them more flexibility based on their financial status.

Criteria for Individuals 55 Years and Above

For individuals aged 55 and above, the criteria differ slightly, taking into account not just income but also assets:

  • Annual Income Below S$15,000: If your annual income is less than S$15,000, the maximum credit limit is S$2,500. This is to ensure that those with lower incomes are not overextended.
  • Annual Income Between S$15,000 and S$30,000: For annual incomes between S$15,000 and S$30,000, the credit limit is up to two times your monthly income.

So, if you earn S$2,000 a month, your credit limit could be up to S$4,000.

  • Annual Income Between S$30,000 and S$120,000: If you earn between S$30,000 and S$120,000 annually, the limit is up to four times your monthly income, similar to the younger age group.

Therefore, a monthly income of S$4,000 could result in a credit limit of up to S$16,000.

  • Annual Income Above S$120,000: Similar to those below 55, individuals with incomes over S$120,000 annually face no regulatory credit limit.

Plus, for those with substantial assets, the credit limits can be influenced by the value of their personal or financial assets. For example, having net personal assets exceeding S$2 million or net financial assets over S$1 million can also lead to higher credit limits.

Regulatory Guidelines and Flexibility

The MAS guidelines ensure that banks provide credit limits based on responsible lending practices. However, banks can exercise some flexibility. For instance, if you have a good credit history and stable financial status, your bank might be willing to offer a higher limit even within these regulatory frameworks.

Understanding these guidelines helps you see where you stand and what might be possible when seeking an increase.

Steps to Increase Your Credit Card Limit

Increasing your credit card limit can provide the flexibility needed for larger purchases or unexpected expenses.

Here’s a detailed guide on how to increase your credit card limit in Singapore, ensuring you understand the different methods and what they entail.

1. Negotiate a Temporary Credit Limit Increase

Sometimes, you need a quick boost in your credit limit for significant but short-term expenses like a wedding or medical emergency.

Banks are often willing to accommodate temporary increases if you can provide sufficient documentation to support your request. This documentation might include:

  • A wedding invitation or hospital bills as proof of the upcoming expenses.
  • Financial statements or payslips showing your ability to repay the additional credit.

Contact your bank directly, explain your situation, and present the necessary documents. Banks understand these situations and usually have procedures in place to process temporary limit increases quickly.

2. Request a Credit Limit Review

If your annual income has increased since you first received your credit card, you can request a review of your credit limit. This is one of the most straightforward ways to secure a higher limit. Follow these steps:

  • Prepare Your Documents: Gather proof of your increased income. This could include recent payslips, a letter from your employer, or your latest income tax returns.
  • Contact Your Bank: Reach out to your bank through their customer service hotline, website, or a visit to a branch.
  • Submit Your Request: Fill out any required forms and submit them along with your income documents.

The bank will review your request, and if your financial situation supports it, they will adjust your credit limit accordingly.

3. Make an Advance Payment

Making an advance payment on your credit card can temporarily increase your available credit. Here’s how it works:

  • Check with Your Provider: Different banks have different policies regarding advance payments. Confirm with your bank how much you need to pay to boost your limit.
  • Make the Payment: Transfer the agreed amount to your credit card account. This payment increases your available credit balance, allowing you to make larger purchases.

This method is particularly useful if you need a short-term increase and can afford to make the advance payment without straining your finances.

4. Get Another Credit Card

Applying for an additional credit card can also increase your overall credit limit. Here’s what to consider:

  • Evaluate Your Needs: Ensure that getting another credit card is necessary and that you can manage multiple cards responsibly.
  • Compare Options: Look for a credit card that offers benefits suited to your spending habits, such as cashback, rewards, or lower interest rates.
  • Apply: Submit your application to the chosen bank. If approved, the new card’s limit adds to your total available credit.

While this method increases your credit limit, it comes with the risk of higher debt if not managed carefully. It’s essential to keep track of payments and avoid overspending.

Bonus Tip: You can combine these methods to maximise your credit limit. For instance, request a credit limit review and negotiate a temporary increase for specific expenses.

This combined approach ensures you have sufficient credit available when needed and helps maintain financial stability.

For those times when you need extra financial help, GS Credit offers flexible loan solutions. Whether it’s for managing unexpected expenses or improving your cash flow, apply with GS Credit today for tailored financial support.

Where Can I Apply for a Higher Credit Card Limit?

Applying for a higher credit card limit varies depending on your bank. Each financial institution in Singapore has its own procedures, which can be followed online, via mobile apps, or through direct contact.

Here’s a breakdown of how you can apply for a higher credit card limit with some of the major banks in Singapore.

UOB Credit Limit Increase

United Overseas Bank (UOB) offers a straightforward process to request a credit limit increase.

Permanent Credit Limit Increase

  1. Use MyInfo: You can fill out an application using MyInfo, which allows for the quick uploading of your information directly on the UOB website.
  2. Personal Internet Banking: If you’re a foreigner or do not have SingPass, you can log in to UOB Personal Internet Banking and follow the prompts to request a credit limit increase.
  3. Credit Limit Review Form: Alternatively, you can fill in the Credit Limit Review Form available on their website and submit it along with the necessary documents.

Temporary Credit Limit Increase

  • UOB TMRW App: For a temporary credit limit increase, use the UOB TMRW app.

You can get instant approval for a temporary increase if it’s for valid reasons like weddings, travels, medical costs, or compassionate purposes.

DBS Credit Limit Increase

Development Bank of Singapore (DBS) provides an easy online process for increasing your credit limit.

DBS offers a straightforward process to increase your credit card limit, whether for a temporary or permanent boost.

How to Increase Your Credit Limit with DBS

Steps for Credit Limit Increase

  1. Login to Digibank Online: Access your account and click on “Apply.”
  2. Select Credit Limit Review: Under “More Application Services,” choose “Credit Limit Review.”
  3. Indicate Preferred Credit Limit: Enter the new limit you are requesting.
  4. Retrieve Income Data: Use Myinfo with Singpass to retrieve your income data.
  5. Submit Application: Review and submit your application.

Required Documents

  • For Singapore Citizens and Permanent Residents
    • Using Myinfo with Singpass: No documents required.
    • Without Singpass: Latest payslip, Income Tax Notice of Assessment, or CPF contribution history.
  • For Foreigners
    • Employment Pass with at least six months’ validity.
    • Latest computerised payslip and Income Tax Notice of Assessment or a company letter certifying employment and salary.

Temporary Credit Limit Increase

  • Apply through Digibank Online for short-term needs like travel or medical expenses.

Citibank Credit Limit Increase

Citibank offers both permanent and temporary credit limit increases through its user-friendly mobile app and website.

Steps to Apply via Citi Mobile® App

  1. Log In: Open the Citi Mobile® App and log in to your account.
  2. Select Product: Choose the Credit Card or Ready Credit product you wish to modify.
  3. Available Credit: Click on “Available Credit.”
  4. Permanent Increase: Select the option for a permanent credit limit increase and follow the prompts.

Alternative Online Application

  • Download Form: Visit the Citibank website to download the credit limit increase application form.
  • Fill and Submit: Complete the form with your details and required income documents. Submit the form via email.

Required Documents

  • Salaried Employees: Most recent computerised payslip or latest Income Tax Notice of Assessment and payslip.
  • Self-employed and Variable Income Earners: Last 2 years Income Tax Notice of Assessment.

Understanding the specific procedures of your bank allows you to handle the application process for a higher credit card limit effectively.

Choosing Wisely Between a Permanent and Temporary Credit Limit Increase

Deciding whether to opt for a permanent or temporary credit limit increase depends on your financial situation and needs. Each option has its benefits and potential drawbacks, so it’s essential to choose wisely.

Permanent Credit Limit Increase

A permanent credit limit increase is a long-term solution that enhances your spending power over time. This option is suitable for those who have experienced a steady increase in income or have a more stable financial situation. Here are some key points to consider:

Advantages

  • Increased Spending Power: A higher limit allows for larger purchases and can improve your financial flexibility.
  • Credit Score Boost: Responsible use of a higher limit can positively impact your credit score by improving your credit utilisation ratio.
  • Long-Term Solution: Once approved, you won’t need to reapply, providing ongoing access to additional credit.

Considerations

  • Risk of Overspending: A higher limit can lead to increased spending if not managed carefully, potentially leading to debt.
  • Approval Process: Requires proof of increased income or financial stability, which involves submitting relevant documents.

Temporary Credit Limit Increase

A temporary credit limit increase is designed for short-term needs. This option is ideal for specific events or emergencies where you need extra funds for a limited period. Here are some key points to consider:

Advantages

  • Immediate Access to Funds: Temporary increases can be approved quickly, providing immediate access to additional credit.
  • Event-Specific: Perfect for covering expenses related to weddings, travel, medical emergencies, or other significant one-time events.
  • Lower Commitment: Since the increase is temporary, it reduces the risk of long-term debt.

Considerations

  • Short-Term Solution: The increase is only available for a specified period, after which your limit reverts to the original amount.
  • Potential Fees: Some banks may charge fees for temporary limit increases, so it’s essential to check with your provider.

Making the Right Choice

When deciding between a permanent and temporary credit limit increase, consider the following:

  • Purpose: Determine why you need the increase. If it’s for ongoing expenses or larger regular purchases, a permanent increase might be more suitable. For one-off expenses, a temporary increase could be the better option.
  • Financial Stability: Assess your current financial situation. If your income has increased steadily, a permanent increase could be justified. If your need is short-term and situational, a temporary boost is more appropriate.
  • Repayment Ability: Consider your ability to repay the increased limit. Ensure you can manage the repayments without straining your finances, regardless of the type of increase.

Choosing wisely between a permanent and temporary credit limit increase helps you manage your finances better and ensures you have the necessary credit when you need it most.

Always consider your financial goals, repayment capacity, and the specific circumstances before making a decision.

Making the Right Choice for Your Financial Future

Managing your credit card limit effectively is key to maintaining a healthy financial situation, ensuring financial flexibility, and achieving your long-term financial goals. Understanding the best strategies for increasing your credit limit, whether through a permanent or temporary boost, is essential to avoid the complications that come with mismanaged credit and potential debt.

Even with careful financial planning, there may be times when you need additional financial support to handle significant purchases, cover unexpected expenses, or improve your cash flow.

At GS Credit, we understand that managing finances can be challenging, especially when you encounter unforeseen expenses. If you’re seeking a flexible loan solution to help manage your finances or cover immediate needs, we’re here to assist you.

Explore our loan options and apply today to receive personalised financial assistance tailored to your needs. Apply for a loan with GS Credit and take a step towards financial stability.

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