Usual Credit Limit

[Lucky_Farmer]

Hi guys,

I am applying for a new credit card. One of the box is my expected credit limit. Generally is there a rule of thumb to decide the credit limit? Should I put down an amount equal to 2 months or 3 months (or 6 months) of my monthly salary? Or put down a very high amount and expect the banks to allocate the highest they can offer? I want to get the highest possible credit limit.

Any thought is much appreciated.

 

[Soundtrack]

Well, it really depends on how much you intent to spend on the card. For me, 3 months is a sweet spot. In an event you need a higher credit limit for big tickets items, you can alway call in to ask for a temporary credit limit increase. Or just prepay the card.

Hi guys,

I am applying for a new credit card. One of the box is my expected credit limit. Generally is there a rule of thumb to decide the credit limit? Should I put down an amount equal to 2 months or 3 months (or 6 months) of my monthly salary? Or put down a very high amount and expect the banks to allocate the highest they can offer? I want to get the highest possible credit limit.

Any thought is much appreciated.

 

[Lucky_Farmer]

Thanks Soundtrack, I wanted to know more about how much the bank is willing to give me (if the bank applies any such rule to allocate a credit limit to me). My concern is that if I put a big number then the bank might reject my application all together. I am not wondering how much I need.

 

[ixoral]

You can just leave it blank and let the bank decide. Usually they will give a few times of your monthly salary. Sometimes if it’s some random card I apply for sign up benefits, I just ask for 5k limit

 

[Perisher]

Usually it's 4x your monthly salary. With no cc track record, it's 2 month.
My experience.

 

[ORELLE]

depend on your salary, if it is 120K PA then the bank will give you more credit.

Else it will be up to 4X ( MAS ruling )

normally bank will give 2X, as the other 2X is reserved for cash loan facilities.

 

[iCubes]

I usually don't specify how much and let the bank decide. I got up to 10x before on some cards. Come to think of it, I think having a lower limit is better in case of theft and fraud.