{"id":18257,"date":"2020-06-10T20:00:00","date_gmt":"2020-06-10T12:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/how-to-increase-credit-limit-without-affecting-credit-score.html"},"modified":"2026-03-27T15:22:30","modified_gmt":"2026-03-27T07:22:30","slug":"how-to-increase-credit-limit-without-affecting-credit-score","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/debt-credit-score\/how-to-increase-credit-limit-without-affecting-credit-score.html","title":{"rendered":"Increase Your Credit Limit Without Affecting Your Credit Score In Malaysia"},"content":{"rendered":"\n

As your lifestyle changes, you may be searching for ways to increase your credit limit without hurting or harming your credit score. Here we\u2019ve listed down the step-by-step guide on how to increase your credit limit for  cards from Maybank, CIMB, Citibank, Hong Leong, AEON, Standard Chartered Bank, Public Bank, and more.<\/strong><\/p>\n\n

Your credit card limit is just like a highway. As the economy develops and more people inhabit an area, the said highway will have to be expanded to meet transportation demands.<\/p>\n

 <\/h2>\n

What is a Credit Limit?<\/h2>\n

If you\u2019re relatively new to credit cards, you may ask – what\u2019s a credit limit? Very simply put, it\u2019s the maximum you can charge to your credit card<\/strong>, and is usually put in place to stop you from overspending.<\/p>\n

The credit limit on your card is usually determined by your income<\/a>. In most cases, banks would give you a credit limit of 2x your monthly salary. If you have a humble paycheck, there\u2019s a chance you\u2019ll have an equally humble credit limit (and vice-versa.)<\/p>\n

However, there are times when you just need a little more room to swipe. Increasing credit limit is a common consideration, especially if you\u2019ve outgrown your limit.<\/p>\n

For instance, you may have encountered an emergency that involves an unexpectedly large spend. Or you may need that extra room because you now want to give your loved one a supplementary  card.<\/p>\n

Regardless of why you need a credit limit increase, the question remains of whether or not this is a wise choice.<\/p>\n

 <\/p>\n

Is It A Good Idea To Increase Your Credit Limit?<\/h2>\n

\"FI_Looking_to_increase_your_credit_limit__Here\u2019s_how_to_do_it_wisely-02\"<\/p>\n

There are many factors to consider when deciding on whether to increase your card’s limit. Let\u2019s dive into the pros and cons involved.<\/p>\n

On one hand, increasing your credit limit gives you more spending power<\/strong> to meet your needs and wants. This is especially useful if you have a major milestone in life – a wedding, a new home or a new addition to your family.<\/p>\n

On the other hand, if your financial history resembles one struggling stay afloat in choppy waters, increasing your credit limit may be a bad idea<\/span>. <\/p>\n

First off, if you\u2019re struggling to pay your debt, chances are, banks won\u2019t actually agree to giving you a credit limit increase<\/strong>. If you\u2019re already trying to survive the rough seas – increasing your credit limit at this point would be akin to attaching an anchor to your feet.<\/p>\n

More importantly, your credit limit WILL affect your credit score. <\/p>\n

 <\/p>\n

How Increasing Your Credit Limit  Impacts Your Credit Score<\/h2>\n

Your credit score is a 3-digit number that indicates your creditworthiness<\/strong>. It\u2019s what banks, lenders insurance companies and other relevant authorities use to gauge if you\u2019re financially healthy or not.<\/p>\n

The higher your score, the more positively you will be viewed as a borrower. Similarly, you will gain more favorably treatment when it comes to financing terms and conditions.<\/a><\/p>\n

If you have a higher limit and an equally high usage, you\u2019ll run the risk of having a high credit utilization rate<\/strong>. If you increase your limit without actually increasing your expenses, then you\u2019ll have a lower utilization rate. Let\u2019s demonstrate:<\/p>\n\n\n\n\n\n\n
 <\/td>\nStandard Spender A<\/strong><\/td>\nSuper Spender B<\/strong><\/td>\nSuper Saver<\/strong><\/td>\n<\/tr>\n
Credit Limit<\/strong><\/td>\nRM5,000<\/td>\nRM10,000<\/td>\nRM10,000<\/td>\n<\/tr>\n
Credit <\/strong>Utilization<\/strong><\/td>\nRM4,000<\/td>\nRM9,000<\/td>\nRM4,000<\/td>\n<\/tr>\n
Credit Utilization Rate<\/strong><\/td>\n\n

RM4,000 \/ RM5,000 x 100% = 80% utilization rate<\/p>\n<\/td>\n

RM9,000 \/ RM10,000 x 100% = 90% utilization rate<\/td>\n\n

RM4,000 \/ RM10,000 x 100% = 40% utilization rate<\/p>\n

*SUCCESS!*<\/em><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

From the above, here\u2019s the takeaway as to how increasing your limit affects your credit score.<\/p>\n