Credit card limit increase allow?

[pinpinpin]

Hi.

I would like to check increase in cc limit.

Used to be salaried stuff with annual ard 40k.

Last yr became self empolyed.

The cards was give when I'm salaried. Will self employment affect the increase in limit?

 

[xjasonz]

Hi.

I would like to check increase in cc limit.

Used to be salaried stuff with annual ard 40k.

Last yr became self empolyed.

The cards was give when I'm salaried. Will self employment affect the increase in limit?

u will have to send in your IR8A form for self employed for them to assess if they wana increase ur limit.

But since u just became self employed, I rather u not do tht. Instead, go to another bank and apply a new card instead.

 

[pinpinpin]

u will have to send in your IR8A form for self employed for them to assess if they wana increase ur limit.

But since u just became self employed, I rather u not do tht. Instead, go to another bank and apply a new card instead.

Changed for half a yr at least.

In fact the income increases 2x. But it is less than 2yrs of business.

 

[xjasonz]

Changed for half a yr at least.

In fact the income increases 2x. But it is less than 2yrs of business.

u can try to call in and ask.

 

[frustrateddude]

understand that self employed has much difficulties in getting a card approved-
not forgetting the 2 years of assessment required.

 

[pinpinpin]

For example.

When I am salaried, 40k noa in 2013

Then later work as self empolyed. Like 30k salaried and 50k self employed in 2014.

Something like this.

 

[reddevil0728]

For example.

When I am salaried, 40k noa in 2013

Then later work as self empolyed. Like 30k salaried and 50k self employed in 2014.

Something like this.

Can submit your income tax return lor. But MAY on the contrary revise downwards?

 

[pinpinpin]

Can reduce?

 

[aural]

For self employed they will be stricter most of the time. Being a self employed for over a decade I know it through personal experience. As some said u may want to try with other banks first unless there is really a great jump in your income compared to your previous pay. Regardless a 2yr NOA will be needed.

 

[MarketWizards]

TS, not sure why you need ( or want ) to increase your credit limit. But a word of caution! With TDSR, the more credit cards you own and the higher the limit ( and your actual expenditure ). It is to your disadvantage when you need to apply for housing loan.

I have actually canceled three cards recently and asked to reduce the credit limit for another card from $90K to $35K.

 

[xjasonz]

TS, not sure why you need ( or want ) to increase your credit limit. But a word of caution! With TDSR, the more credit cards you own and the higher the limit ( and your actual expenditure ). It is to your disadvantage when you need to apply for housing loan.

I have actually canceled three cards recently and asked to reduce the credit limit for another card from $90K to $35K.

Prob he will need the higher limit for his business purchase.

In any case, i think applying from a new bank will actually give him more credit then just asking for a credit increase frm his current bank.

The best solution is to take out a business credit card tht is tied to the company rather thn personal name. Thts wht i feel

 

[NightWish_]

when my business started.. even tho i earn more. most banks wont give more limit as they need 2 years NOA. only SCB increase my limit, and UOB which my company account is.

after u have 2 years should be ok

 

[louist]

I must confess I'm not so knowledgeable in this field, but based on Home buyers, clueless about TDSR? Read on, Singapore Property News, Singapore Property Guides & Articles - STProperty

"But because monthly instalments are based on how much is spent on a card - and not the credit limit - it does not matter if a home loan applicant has multiple credit cards with high credit limits as long as he has not used any, said OCBC."

This sounds more logical than penalising people with multiple cards and high credit limits.

TS, not sure why you need ( or want ) to increase your credit limit. But a word of caution! With TDSR, the more credit cards you own and the higher the limit ( and your actual expenditure ). It is to your disadvantage when you need to apply for housing loan.

I have actually canceled three cards recently and asked to reduce the credit limit for another card from $90K to $35K.

 

[MarketWizards]

I must confess I'm not so knowledgeable in this field, but based on Home buyers, clueless about TDSR? Read on, Singapore Property News, Singapore Property Guides & Articles - STProperty

"But because monthly instalments are based on how much is spent on a card - and not the credit limit - it does not matter if a home loan applicant has multiple credit cards with high credit limits as long as he has not used any, said OCBC."

This sounds more logical than penalising people with multiple cards and high credit limits.

Here is how a high credit limit may become a disadvantage to you under the TDSR frame work:

When you make a housing loan application, the bank would want ALL of your credit cards bills so that they can total up the minimum payment from all cards you possessed. In the absent of a credit card bill ( eg: if you throw the last bill away or if you refused to provide them with ). The bank will take your credit limit x 3% as the minimum payment for that card. For example, if your credit limit is $100,000 x 3% = $3,000. While the actual minimum payment for that card may just be $100 but since the bill is missing the bank will treat it as $3,000 ( in this example ).

 

[pinpinpin]

Here is how a high credit limit may become a disadvantage to you under the TDSR frame work:

When you make a housing loan application, the bank would want ALL of your credit cards bills so that they can total up the minimum payment from all cards you possessed. In the absent of a credit card bill ( eg: if you throw the last bill away or if you refused to provide them with ). The bank will take your credit limit x 3% as the minimum payment for that card. For example, if your credit limit is $100,000 x 3% = $3,000. While the actual minimum payment for that card may just be $100 but since the bill is missing the bank will treat it as $3,000 ( in this example ).

I know wad u mean.

But actually it is more for standby for me.

My cc bill per mth is about $500.

However, I need the limit for some purposes when I need to take up funds.

A word of caution to all. Ensure too much limit won't strike u off.

 

[louist]

Ah, ok. So if you DO have copies of all your statements it should be fine?

But for some banks, if there is no card activity they won't send a statement - will they just count 3% for all dormant cards then? That sounds like a terrible system, though I can imagine in practice that might be what is done.

Here is how a high credit limit may become a disadvantage to you under the TDSR frame work:

When you make a housing loan application, the bank would want ALL of your credit cards bills so that they can total up the minimum payment from all cards you possessed. In the absent of a credit card bill ( eg: if you throw the last bill away or if you refused to provide them with ). The bank will take your credit limit x 3% as the minimum payment for that card. For example, if your credit limit is $100,000 x 3% = $3,000. While the actual minimum payment for that card may just be $100 but since the bill is missing the bank will treat it as $3,000 ( in this example ).

 

[xjasonz]

Ah, ok. So if you DO have copies of all your statements it should be fine?

But for some banks, if there is no card activity they won't send a statement - will they just count 3% for all dormant cards then? That sounds like a terrible system, though I can imagine in practice that might be what is done.

U can always call up to ask for e latest statement at a fee. But of course, if its a dormant card with 0 transactions ongoing, ur CBS report will reflect it. If nt, if u hv IB, just print a copy of the page which shows ur card balance.

 

[MarketWizards]

Ah, ok. So if you DO have copies of all your statements it should be fine?

But for some banks, if there is no card activity they won't send a statement - will they just count 3% for all dormant cards then? That sounds like a terrible system, though I can imagine in practice that might be what is done.

That's right ! If you have all the statements then the credit limit won't harm you anymore.