{"id":39619,"date":"2020-06-09T17:29:51","date_gmt":"2020-06-09T09:29:51","guid":{"rendered":"https:\/\/www.comparehero.my\/?p=39619"},"modified":"2026-03-27T10:54:32","modified_gmt":"2026-03-27T02:54:32","slug":"how-to-increase-credit-limit-without-affecting-credit-score-2","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/bank-news\/how-to-increase-credit-limit-without-affecting-credit-score-2.html","title":{"rendered":"How To Increase Your Credit Limit Without Affecting Your Credit Score In Malaysia"},"content":{"rendered":"

With the current COVID-19 pandemic, many credit card users are searching for ways to increase their credit limit without hurting or harming their credit score. Here we\u2019ve listed down the step-by-step guide on how to have your credit limit increased for Maybank, CIMB, Citibank, Hong Leong, AEON, Standard Chartered Bank, Public Bank, and more.<\/strong><\/p>\n

Your credit card\u2019s limit is like your pants during the MCO. In no time, you\u2019d realise that you\u2019ve outgrown it.<\/p>\n

If you\u2019re relatively new to this, 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 going overboard.<\/p>\n

This goes hand-in-hand with how much you earn too, as 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, of course.)<\/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. You may need to make an extraordinarily huge purchase this month. Or you need that extra room because you now want to give your daughter a supplementary credit card.<\/p>\n

Or perhaps your rice bowl has been affected by the pandemic, and likewise with your cash flow. You may need to help bolster your finances by paying with your credit card while things improve on your end.<\/p>\n

Don\u2019t be ashamed if you fall in that category – the Covid-19 pandemic has caused many to lose their jobs, and it seems like every new week comes with news of massive layoffs in a variety of industries –\u00a0media<\/a>, aviation<\/a>, hospitality<\/a>\u2026 the list goes on.<\/p>\n

Regardless of why you need a credit limit increase, the question beckons…<\/p>\n

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

Is it good to increase your credit limit? Is it bad to increase your credit limit? Should you even bother? Let\u2019s dive into the pros and cons of increasing your credit limit really quickly.<\/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 and empty home, a new baby, trying to win your girlfriend back because of that thing you said\u2026<\/p>\n

But on the other hand, if your history of dealing with debt has always felt like trying to stay afloat in choppy waters, increasing your credit limit may be a bad idea. Scratch that – it would be the worst<\/em> idea<\/strong>.<\/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>. 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

But the bigger thing here is that your credit limit WILL affect your credit score. More on this in the next section.<\/p>\n

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

If you didn\u2019t know, your credit score is a 3-digit number that indicates your creditworthiness<\/strong>. It\u2019s what banks, lenders, insurance companies, employers, and future mother-in-laws use to gauge if you\u2019re financially healthy or not. The higher your score, the more likely it would be to get financial help. (And, in some cases, the hand of the person you want to marry.)<\/p>\n

If you have a higher limit and an equally high usage, you\u2019ll run the risk of having a high credit utilisation rate<\/strong>. If you increase your limit without actually increasing your expenses, then you\u2019ll have a lower utilisation rate. Let\u2019s demonstrate:<\/p>\n\n\n\n\n\n\n
\u00a0<\/td>\nStandard Ali<\/strong><\/td>\nSuper Spender Ali 2.0<\/strong><\/td>\nSuper Jimat Ali 3.0<\/strong><\/td>\n<\/tr>\n
Credit Limit<\/strong><\/td>\nRM5,000<\/td>\nRM10,000<\/td>\nRM10,000<\/td>\n<\/tr>\n
Credit Utilisation<\/strong><\/td>\nRM4,000<\/td>\nRM9,000<\/td>\nRM4,000<\/td>\n<\/tr>\n
Credit Utilisation Rate<\/strong><\/td>\n\n

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

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

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

*WINNER!*<\/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