Articles

How to Increase Credit Limit in Your Credit Card

by Mohammad AbdurKhan Financial Blogger
Every credit card comes with a dedicated credit limit. The limit varies from bank to bank. But there’s one common thing among all bank’s credit limits, i.e. it’s flexible with the customer’s needs. Sometimes the cardholder sees himself/herself in a need of a higher credit limit, and right at that moment, he/she needs to analyse their needs before blindly opting for an increase in credit card limit.
Benefits associated with a credit limit increase:
  • The cardholder can enjoy a financial flexibility with an increase in the credit limit.
  • The cardholder can also get a better credit score with an increase in the credit limit.
  • The increase in credit limit can help a cardholder in case of emergencies.
  • The cardholder can enjoy a better lifestyle, travel and dining experience with the credit limit increase.
  • Things to consider while opting for a credit limit increase:
  • The cardholder needs to know exactly how much of an increase in the credit limit is requiredbefore opting for one.
  • The possibility of getting the request of an increase in credit limit depends a lot on the customer’s behaviour in the past. This includes the repayment behaviour, the credit score, and the current status. If the cardholder had maxed out the card in past at several occasions and/or has been inconsistent with repayments, his chances of getting an increase in credit limit are very thin.
  • The cardholder also needs to have a valid and precisely-evaluated reason to opt for a credit increase.
Types of credit limit increase:
  • Temporary credit limit increase: The cardholder can go for a temporary credit limit increase in case of emergencies or when he needs the money for a short period.
  • Permanent credit limit increase: A salaried employee can opt for a permanent credit limit increase in cases of a salary hike whereas a self-employed individual can opt for one in cases of a significant development in his business.
Required documents to increase credit limit:
Salaried employees: 
  • Latest one month slip
  • Latest EA form that’s issued not more than 12 months before the application
  • Latest BE form with LHDN receipt or 
  • Latest EPF statement issued not more than 12 months before the date of application.
Self-employed individual: 
  • Business Registration form (Form 24 and 29) 
  • Last 6 months bank statement 
  • Latest B form with LHDN receipt.
Commission earners/Variable income earners: 
  • EA form released not more than 12 months before the date of application
  • Last 3 months pay slip
  • Latest BE form with LHDN receipt or 
  • Latest EPF statement released not more than 12 months before the application.
The process of application:
The process of application for a credit limit increase is listed below:
  • The applicants need to download the Credit Limit Increase form from the bank website or get the copy from the bank’s branch.
  • The form needs to be filled with the required information and should be attached with the supporting documents. 
  • The applicant then needs to upload the documents along with the form filled with necessary details on the website or submit them at the bank’s branch physically.

About Mohammad AbdurKhan Junior   Financial Blogger

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Joined APSense since, January 23rd, 2018, From Kuala Lumpur, Malaysia.

Created on Jan 24th 2018 04:10. Viewed 99 times.

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