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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.



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The Power Within You

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Ever thought of getting a credit card but don’t know where to start? For majority of cardholders we know, credit cards are terrific tools that certainly have very great advantages.

We at comprecreditcards.com.ph have surveyed many customers and here is what came out…

Its very handy payment. That’s the big thing, right? You don’t have to worry about being robbed or something because you don’t have that big cash with you. Even if you’re just making small purchases, it’s a big help. Plus, the fact that we are in the on-line shopping age, it’s a total must have.

On the spot loans. When you’re short of cash, a credit card will be there to save you from the embarrassment of not being able to pay as it will help you make up for your purchase. To avoid any fees, just pay your balance in full.

You have no idea as to where you’re spending your money? People have the tendency to say they don’t know where half of their money went. With a credit card, you can easily track your purchases on your monthly payments. So if you think your wife spent too much for the month, check on your bill, who knows, it might even be you…

It’s easier to pay off. It’s easy to pay credit card bills. All you have to do is find an ATM with your checking or an easy account transfer. Good news is you don’t have to wait a month to pay it off. And guess what, some even lets cardholders pay their bills ONLINE. So say goodbye long lines; Hello to convenience!


You get rewards.

Every time you make transactions you earn point or “rewards” that you can exchange for either gift checks, vouchers, exclusive items or maybe the cash back system. We’re not saying that you use your credit card non-stop to avail of these, but as a matter of fact, it is a nice bonus.

Very exclusive deals. How would you spell exclusive? Its “c-r-e-d-i-t-c-a-r-d”. Why? Because you get a lot of high class services that are only available for those people who hold the cards. Sometimes its discounts on products, dining and traveling first class. Remember the times when you really wanted to buy something and you were able to buy it because of the discount my credit card was able to give me.

We can go on and on with these, but nothing is really important than learning it by experience. Everything has its ups and downs. It’s up to you, as the card holder, to become responsible in how you manage your money. Look into the bigger picture of how credit cards make life easier and who knows you might just even love it. Just be responsible and a word of advice, pay your dues on time, all the time…