Have you ever wanted to make a big purchase but didn’t have the available credit to cover it?
For example, when you’re planning to buy a washing machine, a refrigerator or a brand new sofa? You need to find ways to get more money!
We often use credit cards to make payments in order to receive rebates. Be careful not to end up in credit card debt. Surprisingly, even personal loans have lower interest rates than credit cards.
Wondering how you can increase your credit card spending limit? Then you’ll want to read this post! In it, we’ll show you how to increase your credit card limit and what you need to prepare before doing so. So don’t wait – read on and take action!
How Is My Credit Limit Calculated In Singapore?
How often did you look at your credit limit, wondering why it’s so tiny? Well, now we’ll tell you who the real culprits are.
And it’s not (just) the banks.
Sure, the credit card issuer does have a say in establishing the max credit, but the Monetary Authority of Singapore (MAS) establishes the guidelines. That means your bank has to comply with those rules.
Age is one essential variable within those rules:
Here’s how your income affects your max credit limit if you’re younger than 55:
- Below or equal to $30,000/ year: The credit limit is a maximum of double your monthly income.
- Between $30,000 and $120,000/year: The limit is a maximum of four times your monthly income.
- Over $120,000/year: You have no more credit limit.
55 and Above
If you’re over 55 years old, your net personal assets must be worth at least $750,000 to $2,000,000. That tells the banks you’ve spent your youth gathering enough wealth to guarantee you credit cards.
Here’s how that credit card limit depends on your income:
- Below or equal to $15,000/year: Your credit limit is $2,500.
- Between $15,000 and $30,000/year: Your credit limit is two times your monthly income.
- Between $30,000 and $120,000/year: The limit is a maximum of four times your monthly earnings.
How Do I Get My Credit Card Limit To Increase?
The best way to increase credit card limits is by upping your annual income. That may mean getting a second job, investing, or renting out some of your properties.
But that’s not always possible.
Working two jobs is exhausting while finding passive income solutions is a long-term lifestyle change that we tackled in this article. We understand you want a higher credit card limit now to pay for a big purchase, like a wedding or home downpayment.
Warning: Charging massive expenses on your credit card can quickly sink you into debt if you don’t repay your bills on time. Clear your credit card debt with Lending Bee’s solution.
That said, here’s how to increase your credit card limit:
1. Negotiate a Temporary Credit Limit Increase
Your bank may understand if you need a temporary limit increase to face an expensive purchase. One example is having a wedding. Although we don’t encourage our clients to use their credit cards for wedding-related expenses, you may still want to do it – and your bank may agree it’s a wise choice. Hospitalisation or a death in the family are other valid reasons for a limit extension.
Remember to bring the bank proof of your situation, but also evidence that you can repay your balance.
2. Request a Credit Limit Review
If you managed to increase your income, you could ask for a credit limit review. Don’t forget to bring the necessary paperwork that proves this increase in your earnings.
3. Make an Advance Payment
You can also increase credit limits with an advance payment on your credit card. Of course, each provider has its conditions. Therefore, your best bet is to ask the bank how much down payment they would require for the limit increase you need.
4. Get another Credit Card
This solution isn’t advisable, but you have the legal option because MAS imposes these credit card limits on banks, not on you. So, let’s say you’re earning $36,000/year, and you have a credit card at DBS with a limit of $12,000.
If you can’t negotiate a higher limit with them, you can open another credit card at UOB and another one at Citibank, for example.
Now, you can make purchases of up to $36,000, even if your credit card limit hasn’t increased per se.
Having multiple open credit facilities can put you at risk for debt if you overstretch and can’t pay your dues on time.
Where Can I Apply For A Higher Credit Card Limit?
You can apply for a higher credit card limit directly with your card issuer. However, each bank has a different process:
UOB Credit Limit Increase
Here’s how to get a UOB credit limit review:
- Fill in a quick application using MyInfo to upload your information on the UOB website.
- If you’re a foreigner or don’t have a SingPass, you should log in to UOB Personal Internet Banking; or
- Fill in the Credit Limit Review Form.
Luckily, a temporary max credit card increase is possible.
If you only need a temporary max credit increase, you can get instant approval using UOB TMRW. However, you’re only eligible for weddings, travels, medical costs, and compassionate purposes.
DBS Credit Limit Increase
You can increase your credit card limit with DBS by following these steps:
- Log in to digibank Online.
- Fill in the new limit you want within $4,000 and your purpose.
- Add the duration for this temporary measure within the limit of 30 days.
- Submit your application.
Citibank Credit Limit Increase
Here’s how to increase your credit card limit with Citibank using the app:
- Log in to your Citi Mobile app.
- Select “Credit Card” or “Ready Credit”.
- Click on “Available Credit.”
- Choose the Permanent or Temporary limit increase, depending on your needs. On the bright side, Citibank’s temporary limit increase is 60 days.
If you don’t have their app:
- Download their request form.
- Fill it in with your details.
- Attach this form to an email, adding the income proof documents.
Choose Wisely Between A Permanent/Temporary Credit Limit Increase
As you can see, increasing your credit card limit isn’t that hard. Banks are usually understanding, especially for temporary limit increases that have a good reason.
But like we said before, you can unwittingly sink into credit card debt if you make the wrong financial choices. You can tackle this situation, but sometimes it’s best to avoid it altogether.
Getting a loan with Lending Bee is a worthwhile alternative.
You have a longer tenure during which to reimburse our customised, affordable installments, meaning you won’t even feel the extra payment in your day-to-day life. That’s how you avoid stress and keep your credit score sound.
Compare personal loan rates with that of credit cards here!
About Lending Bee
In a volatile, uncertain, complex and ambiguous world, you can count on one thing – your partner in credit, Lending Bee. Just like an industrious bee, we are committed to helping each and every customer access credit – quickly, easily and seamlessly.