News And Articles


Annual Fee
Interest Rate

How Credit Limit Is Determined

  • Interest Rate :
  • Annual Fee :

DESCRIPTIONS:


Ever wonder how your credit limit is determined by a bank? Have you ever felt bad about having a low credit limit compared to others? Do you sometimes wonder why you were given a very high credit limit? The “magic number” is dependent on a lot of things, but mainly at how the bank assesses your ability to pay back your credit.

Banks love good credit

Banks are ready to give you a higher credit limit if your credit score is good. There are some banks willing to instantly give you a big credit limit upon application but others may put you on probationary mode where you get low credit limit at first; the amount eventually increases over time when you prove to them that you are capable of paying your loan.

The bank is watching you

Banks and credit card companies in general like to monitor your credit status. While most of them can limit any increases on your credit to at least once or twice every year, you can also be rewarded with a higher number of increases if your credit is really good. Sometimes, having good credit is also unfortunate in a sense that you continue getting higher limits regardless of whether you are capable of affording to pay such an amount or not, so if you are not careful, you may find yourself buried in debt.

What to do to avoid debt

The truth is, credit card companies don’t care about your financial status. They just want to know if you are capable of paying your credit card bills on time. Therefore, you need to tell the bank or the credit card issuer to not give you higher credit limit anymore if you think you have enough. You need to know your own financial limitations first so you can set a boundary with your credit card.

To turn down an increase in your credit limit, a simple call to the bank or your credit card company should do the trick. You may have to send them a letter to ensure that they take action.



Featured Credit Cards:

HSBC Classic and Gold Credit Card


FEATURES:

  • No worries with your annual fees because the initial year will be for free for both the primary and supplementary card holders.
  • Get 1 Rewards point for every Php10 you make!
  • Pay less as you buy more with HIP!
  • Need assistance at the middle of the night? Relax as HSBC Classic and Gold Credit Card has 24/7 customer service ready to help you with everything you need.

BPI Credit Card – Express Classic


FEATURES:

  • Pay for just Php1250 for your primary card!
  • Get the lowest finance charge of just 2.75%!
  • The BPI Classic card lets you shop and dine with friends and family anywhere since it  is accepted in 20,000 establishments nationwide!
  • Avail of FREE Travel Insurance Package when you charge your fare with the BPI Classic card.
  • Avail of BPI Express Classic card’s S.I.P. facility that lifts the problem with you paying high-ticket items by easy to pay installment terms!
  • Get cash advance for up to 30% of your credit limit!
  • Earn free miles with every Php35 worth of transaction charged to your BPI Express card!
  • Transfer your balance with just 1% add-on interest rate per month!
  • Enjoy 24/7 customer service anytime, anywhere!

Citibank Rustans Credit Card


FEATURES:

  •  Pay an annual fee of just Php2500 and enjoy 2% rebate on all Rustan purchases!
  • Transfer your old account to your new Citi Rustan’s Card absolutely for FREE!
  • Relish on a Cash Advance Rate of 3.50%!
  • Get a Cash Advance Service fee of Php500 or 3% which ever is higher!
  • Go over your credit limit of over Php500! 

MABUHAY MILES PLATINUM CREDIT CARD


FEATURES:

  • Get free Miles with the lowest point conversion ever to hit the market with only Php38!
  • Gain access to your credit card account anywhere in the world!
  • Enjoy as much as 30% of your credit limit in My Ally Instant Cash
  • Also enjoy a revolving Interest Rate of only 3.25%!

Featured Articles:

HOW TO PICK THE BEST AMONG THE REST: CHOOSING THE RIGHT CREDIT CARD FOR YOU

With all the offers you get form credit card companies, you may feel a little overwhelmed about what kind of credit card suits you best. Here, at comparecreditcards.com, have a few tips for you in choosing the appropriate credit card for you before you say the big “yes” to any credit card company or get carried away with solicitations over the phone or via mail.

Find out your basic goals. Ask yourself; Why do I need a credit card? You can’t just go and apply for a credit card just to be “in” with another crowd.

Next, determine how much you are prepared to pay for the annual fees and how much you plan to spend every month. This will help you start selecting a credit card that is within your budget.

Now do the research. Go to online resources (like comparecreditcards.com) to find out everything you need. If you have free time, drop by at the banks to inquire personally about all the things you need to find out. These should include the following:

  • The annual fee
  • Required minimum period
  • Finance charges
  • The credit card issuer providing the credit line and its size
  • The extension period (interest free days) before the payment should be made.

Review all the credit cards your have researched. Base your choice of credit card to the one that bests suits your lifestyle and personality. Always remember to choose the credit card that proposes the BEST DEAL for you. For example, don’t go for a credit that offers you free miles if you don’t have any plans of traveling abroad! Get the point?

Now that you know what to do, start looking up your resources and find out the best credit card suited for you.