How Do I Increase My Credit Card Limit & What Do I Need To Prepare?
by CashOctopus • June 30, 2022
You are going to make a large purchase that costs thousands of dollars.
We all find ourselves in a situation where we could use a bit more spending power. If you find yourself in this situation and have a credit card, the next step might be to increase the credit limit.
But how do you go about doing that? And what do you need to prepare before applying for a higher limit?
What happens if you overspend after increasing your credit card limit? Will taking a personal loan be better for this purchase?
In this blog post, we’ll answer these questions and provide ways on increasing credit limits. Read on to learn more.
How Is My Credit Limit Calculated in Singapore?
First, we need to understand how banks calculate our credit card spending limit.
The bank determines the credit limit on your credit card or credit line. Still, it is ultimately overseen by Singapore’s Monetary Authority (MAS).
As a result, any credit limit they give you must meet MAS’s requirements. Your entire credit limit must fall between the following levels, depending on your age.
1. 55 Years and Below
Your annual earnings determine your credit limit. When you earn less than S$30,000 per year, the credit limit is limited to double your monthly earnings.
The credit limit is four times your monthly earnings if you earn between S$30,000 and S$120,000 per year. For people earning more than S$120,000 per year, the credit limit is not regulated.
2. Over the Age of 55
The income criteria are reduced for people over fifty five, but you must have around S$750,000 to S$2 million in personal net assets .
Your yearly earnings also determine the credit limit. For persons earning up to S$15,000 per month, the credit limit is S$2,500. If you earn between S$15,000 and S$30,000 per month, the credit limit is twice your monthly salary.
If you earn between S$30,000 and S$120,000 per month, you will be granted a max credit limit of four times your monthly earnings.
How Do I Get My Credit Card Limit to Increase?
If you want to raise the credit limit on a favored card, bear in mind that there are now restrictions to how much you may raise it. But don’t let this stop you.
Here are three ways to get more money from the bank:
1. Request a Review of Credit Limits
If you want a permanent increase in credit limit, you must demonstrate that your income has improved since you received your credit card. You can send your most recent income papers, such as payslips, CPF statements, or Income Tax Notices of Assessment.
The credit limit will be raised after your income is validated.
This might be an excellent strategy to raise your credit score and enhance your financial situation. So, if you want to take your finances to the next level, request a credit limit review immediately.
2. Make a Down Payment
Making an advance payment on your credit card is another way to increase credit limit. This technique is excellent if you have a large quantity of cash but a little credit limit and need a temporary credit limit increase for a big purchase.
3. Temporary Credit Limit Increase
You can submit an online inquiry for people who want a temporary increase in credit limit for vacation, a wedding, hospitalization, or compassionate reasons. To get credit limit increased authorized, you will most likely be requested to present documentation of your life circumstances.
It is crucial to remember that you must settle off the account before the credit limit increase lapses or you’ll be charged an over-limit fee.
Requesting a temporary credit limit increase is an excellent approach to pay unforeseen expenses while remaining inside your budget.
However, it can be easy to fall into credit card debt. Credit card interest rates are as high as 26% to 27%. This is actually higher than personal loans.
Personal loans might be a better option if you’re looking for a large sum of money urgently. Click here to get free loan quotes from CashOctopus Singapore.
Where Can I Apply for a Higher Credit Card Limit?
Some of the banks you can apply for a higher credit card limit at UOB bank, DBS Bank, and Citibank.
1. UOB Credit Limit Review
How do you increase your UOB credit card’s spending limit?
For Singapore citizens and PRs with Singpass, complete your request within a few minutes by retrieving all the information needed online. No documents are required – it’s that simple.
If you are not a Singaporean or Permanent Resident, log in to UOB Personal Internet Banking and fill out the Credit Limit Review Form. They will evaluate your income papers before issuing a temporary increase in the limit if necessary.
If you want a temporary credit limit increase, apply with UOB TMRW for immediate approval or phone us at 1800 222 2121, and we will gladly assist you.
Temporary credit limit increases are only available for international trips, weddings, medical/hospitalization, and compassionate reasons.
For other reasons, you can apply for a larger loan here.
Note: The permission of both the Principal and Supplementary Cardmembers is necessary for supplementary cards to benefit from a temporary or permanent credit limit increase sought by the Principal Cardmember.
2. DBS Bank Temporary Credit Card Limit Increase
For a temporary credit limit increase, you can apply via the digibank online or online form.
– Online banking digibank
– Enter your User ID and PIN into Digibank Online and finish the authentication procedure.
– Select the Purpose of the request and enter the Temporary Limit Increase Amount up to S$4,000.
– Set the Temporary Limit Increase Duration to 30 days and click Next.
– To finish the application, double-check the information and click Submit.
3. Citibank Permanent Credit Card Limit Increase
You can apply for a permanent increase by using the Citi Mobile app or apply physically at Citibank branches.
– Citi mobile app
– Log in to Citi mobile app
– Select credit card or ready credit product
– Select available credit
– Click on available permanent credit increase
For a physical application form, you may download it here and send the necessary income papers through email.
What if I Cannot Increase my Spending Limit?
Banks are able to increase your credit card spending limit if they see a healthy financial state as well as a valid reason. This is great for those who need money urgently.
However, there are often red tapes and bureaucracy in banks.
To get more money from the bank, you will need to cater to the processing time and admin fees. Next, it will also take a lot of time to compare rates between banks.
There is a method to get fast cash in Singapore without increasing your credit card spending limit.
Simply apply for the fastest personal loan in Singapore via our unique algorithm. We promise only the best loan rates will be shown!