News And Articles

What is your limit?


In the Philippines (and in most economies), there are no hard and fast rules on determining the credit limit an issuing bank may extend a cardholder. It’s all arbitrary; the figure often seems to come out of thin air, based solely on the bank’s discretion. However, some factors do affect how big (or small) your credit limit can be.

  1. Your monthly income – Some banks give you a limit that is 20% higher than your monthly income, and some banks give you 20% less than your monthly income.
  2. How long you have been a creditor – If you have been a credit card holder if that bank for a few years, you may be given a bigger limit than a new applicant.
  3. The issuing bank’s conservativeness – Citibank and Banco de Oro are often less conservative than most issuing banks; they tend to give higher credit limits.  Some of their cards, of course, impose higher interest rates than the cards issued by more conservative banks, like BPI.
  4. The credit limit on your other cards – If you have credit cards from other issuers, a new issuer might try to give you at least the same credit limit, if not higher, provided that you’ve been responsible in using your current limit. If you pay on time and regularly, other banks will feel more confident in lending you bigger amounts.
  5. Your desired credit limit – You can oftentimes demand your credit limit, especially if you have a good credit score, meaning, you have a history of being a responsible credit card user. Getting a higher credit limit can be as simple as calling your bank and asking for an increase. They may require you to fax an income tax return or other proof of income. You can also negotiate the limit on new banks trying to get your business by demanding for a certain figure and saying that you will not sign up unless they grant you that figure. If you really are an ideal credit candidate in their eyes, you will get the limit you want.



Featured Credit Cards:

BDO GOLD MASTERCARD


FEATURES:

  • Avail of FREE Annual fee for the initial year!
  • Spend at least Php180000 per year and get FREE ANNUAL FEE FOR LIFE!
  • Shop, dine and travel anywhere around the world with the BDO MasterCard Gold!
  • Get one point for every Php50 worth of purchase and trades them for a reward you want!
  • Avail of the Dual Currency Billing Option!
  • Leave all your worries and concerns behind with the Travel Accident and Inconvenience Insurance Coverage of up to P5 Million exclusive for BDO Gold Cardholders!
  • Enjoy unlimited discounts and privileges with the BDO MasterCard Gold!
  • Worry no more with BDO’s light and easy installment programs!

Featured Articles:

KEEPING AWAY FROM CREDIT CARD PROBLEMS

Once used properly and efficiently, credit cards are handy and suitable devices for just about anyone who is of age. It can even assist you with upcoming activities like buying a house, getting another degree and sometimes going for a leisure trip somewhere abroad with family and friends. Before you allow your teenager or yourself to get a credit card, know some of its advantages and understand some of its procedures.

A credit card can allow you to bUy products or services which you need right now but can’t afford to pay all of it at once. Sometimes it’s often the single way to pay for hotel accommodations, car rental fees or airline tickets.

Credit cards also allow it holders to purchase items over the phone or sometimes in the internet. You can shop and pay your monthly bills in the convenience of your very home! Some credit card companies offer virtual banking that lets you shop and transact business online.

It is also safer to carry a credit card than to carry cash around wherever you go. For the most part, credit cards are very useful in instant emergencies like accidents, car breakdowns or calamities.

You could actually even give anything you purchase protection, avail of travel insurances, free miles and even cash back bonuses if you charge your transactions with your credit card.

One fact is for sure; having a credit card is convenient at times but also remember that a credit card tempts you to spend money you don’t have. Always have the sense to follow up on your credit card to avoid overspending which can give you a big headache in the future. Use your credit cards in ways that you benefit from them, not them benefiting from you!

Understand what you’re getting into before you start building up credit card balances. Once used wisely, they are an absolute help in budgeting. But if not, they will turn up to be your greatest nightmare.