Requesting the bank to raise your credit limit is not always a bad sign. Sometimes a credit card limit increase is needed and helpful in preparing for your family’s growing needs. It also helps you cover unexpected expenses without maxing out your card. This increased purchasing power can also improve your credit score, lower your credit utilization ratio, and provide more financial flexibility. If you want to learn how to increase your credit limit, this article is your easy guide.
How to Increase Credit Limit
Credit limit refers to the maximum amount of credit a bank or financial institution extends to a credit card user. There are four ways to request:
- Request online – You can request through the bank’s mobile app or website. Be prepared to be prompted for personal and financial information for the bank to evaluate your eligibility.
- Request over the phone – Call your bank or financial institution and ask a customer service representative if you’re eligible for a credit limit increase.
- Wait for an automatic increase – Banks regularly offer credit limit increases without a formal request for clients after 6 to 12 months. If bills are paid on time, the card is generally managed responsibly.
- Request for an increase in person – If you choose this option, be ready to submit income documents to prove you have sufficient finances to pay for higher monthly credit card bills. This option also gives the request a personal touch and lets you explain everything in person, reassuring you that you can keep up with your debts.
Improving Your Chances of Getting a Higher Credit Limit
Here are a few tips on raising your chances of getting your higher credit limit approved.
Don’t request too soon
Banks usually review their client’s credit card account every 6 to 12 months. Requesting an increase when being a customer for less than 6 months raises a red flag.
Your creditworthiness has to be spotless
All applications for credit card limit increase goes through an evaluation process. Factors like your credit score, income, and employment or business status are carefully considered before making a final decision. Being an “on-time” client and responsible spender adds to your creditworthiness.
Explain why you deserve a credit limit increase
Focus on the logic of your request and offer sensible reasons why your credit limit increase should be approved. Instead of appealing to emotion, remind them that you’ve been a loyal customer and responsible card user for a long time, you have never missed a credit card payment, all bills are paid in full and on time, you have never maxed out on your card and spend less than 30% of your current credit limit, and your income has increased considerably.
Don’t ask too much
When quoting a credit limit increase, ask for a 10% to 25% increase. Anything higher than that may signal the bank’s credit card evaluators wrong.
For the in-person touch, here’s how to increase credit limits with some Philippine banks and how to apply.
BPI Credit Limit Increase
Call your BPI branch on the Express Phone Hotline or see the bank’s customer service representative to request a BPI increase credit limit. You will be asked to submit income documents such as payslips and income tax returns (ITR) that will be used to evaluate your creditworthiness for a higher credit limit.
Related: BPI Savings Account Requirements: Open an Account with Ease
BDO Credit Limit Increase
For BDO increase credit limit requests, call your branch’s contact number and set an appointment or go to your branch’s customer service representative in person. The bank will ask for critical information to verify your eligibility, such as:
- Your desired credit limit.
- Reference credit cards.
- Your length of relationship with BDO and when you started using a BDO credit card.
- Backup documents such as proof of income and ITR.
RCBC Credit Limit Increase
For all RCBC credit limit increase requests, you need to contact the RCBC Bankard customer service hotline at (02) 8888-1888 since their credit card service is centralized. You can also email service@rcbcbankard.com for the credit card increase request. Be prepared to submit pertinent documents like payslips and ITR.
Metrobank Credit Limit Increase
Metrobank bank accommodates any request on their official Facebook page and messenger or through your branch’s customer service representative. They will assist you with your application and request the necessary paperwork for the evaluation.
PNB Credit Limit Increase
Aside from seeing a customer service representative at your branch, you can also send your request through the bank’s official email.
- Download the PNB Cardholder Request Form.
- Fill out the form and place a checkmark on “Please increase my credit limit/s to” and then indicate your desired credit limit amount either in Philippine pesos or US dollars. Affix your signature at the bottom of the request form.
- Email the accomplished form to pnbcreditcards@pnb.com.ph. Along with the form, also submit the following latest documents:
- One-month payslip
- Latest ITR
- Two-month billing statements of a non-PNB credit card
What Happens When Your Credit Card Limit Increase is Approved?
1. Credit utilization ratio is lower.
The higher credit limit means a lower utilization ratio, improving your credit score. An ideal credit utilization ratio is 30% of your credit limit. The maximum balance should be at most 30%, or the bank will feel you are overspending.
2. Your credit card might get an upgrade.
With some banks, when your request for a higher credit limit is approved, your credit card may be upgraded or changed to a higher-tier one. However, the terms and conditions of the card may change as well. If you can retain your old card with a high credit limit, you can still enjoy the current card’s benefits. If the upgrade is a higher-tier card, make sure the card suits your lifestyle and spending.
3. Lenders offer loans at lower interest rates.
You may suddenly receive more product or loan offers because your credit score has improved, and you are now considered a low-risk borrower.
4. Enjoy more perks and rewards.
A higher credit limit now gives you more purchasing power, especially in bulk. You can also use sales and merchant perks, rewards, and discounts.
5. Close other cards.
Because you have a credit limit increase with a single card, you should cancel other cards with lower credit limits since it is challenging to manage multiple credit cards. This will reduce your expenses and difficulty keeping track of various charges and bills.
Conclusion
As excellent and valuable as credit limits are, it’s important to remember to use them responsibly. Increasing your credit limit is a great way to access more financial resources – as long as you stick to the payment plan you’ve agreed upon. By understanding what can influence your chances of being approved, having a good credit rating, and being disciplined enough o pay back on time each month, you can effectively increase your credit limit in the Philippines. With a higher limit comes potential greater control over your finances – so be mindful of the decisions you make. It might not always seem easy, but with careful consideration and practice, increasing your credit limit is within reach!
Recommended: What is the Best Credit Card in the Philippines?
