Increasing your credit card limit offers several advantages, including greater financial flexibility and the ability to manage unexpected expenses without maxing out your card.
It can also improve your credit score by lowering your credit utilization ratio, making you more attractive to lenders.
Additionally, a higher limit simplifies financial management, potentially leading to credit card upgrades with better perks for Filipino clients.
Understanding Credit Limits
Your credit limit is the maximum amount a bank allows you to spend on your credit card.
If you’re reaching this limit often or preparing for larger expenses, requesting an increase might be a good idea.
Banks can automatically raise your limit if they see you as a responsible borrower, but you can also request an increase manually.
How to Request a Credit Limit Increase: 4 Methods
There are several ways to request a credit limit increase from your bank:
- Request Online: Many banks offer the option to request an increase through their mobile apps or websites.
This usually involves providing some personal and financial information.
- Request Over the Phone: You can also call your bank’s customer service hotline to inquire about your eligibility for a limit increase.
The representative will guide you through the process.
- Wait for Automatic Increase: If you consistently manage your credit well, your bank might automatically increase your limit after reviewing your account.
- Request in Person: Visiting your bank branch and speaking directly with a customer service representative is another option.
Be prepared to provide income documents like payslips or an income tax return (ITR) to support your request.
Improving Your Chances of Approval
To increase your chances of getting your request approved, consider the following tips:
- Don’t Request Too Soon: Avoid requesting a limit increase within the first six months of opening your credit card account.
Banks prefer to see a history of responsible usage before granting an increase.
- Maintain a Spotless Credit History: Banks evaluate your creditworthiness based on your credit score, income, and employment status.
Consistent on-time payments and responsible credit use will make you a more attractive candidate.
- Provide a Clear Justification: When making your request, focus on logical reasons for needing a higher limit, such as a recent increase in income or consistent on-time payments.
- Request a Reasonable Increase: Asking for a 10% to 25% increase is generally seen as reasonable.
Requesting too much can raise concerns about your ability to manage a higher credit card bill.
Bank-Specific Procedures for Credit Limit Increases
Here’s how to request a credit limit increase with some of the major banks in the Philippines:
BPI
- Contact BPI’s customer service hotline or visit your branch to request an increase.
- Submit income documents like payslips and ITR.
- Processing time can vary, so follow up if needed.
BDO Unibank
- Reach out to BDO customer service by phone or visit your branch.
- Provide supporting documents such as proof of income and your ITR.
- BDO may review your account and decide based on your financial standing.
RCBC
- Call the RCBC Bankard customer service hotline at (02) 8888-1888 or email them.
- You’ll need to submit relevant documents like payslips and ITR.
- RCBC will evaluate your request based on your credit history and financial health.
Metrobank
- Use Metrobank’s official Facebook page or contact their customer service.
- They will guide you through the application process and request necessary paperwork.
- Ensure your account is in good standing for better chances of approval.
PNB
- Visit a PNB branch or email your request through their official email.
- Download and complete the PNB Card Holder Request Form, then email it with your latest payslip, ITR, and two-month billing statements from a non-PNB credit card.
- PNB will review your request and respond based on your financial situation.
UnionBank
- Call UnionBank’s customer service hotline at (+632) 8841-8600 or email them.
- Be ready to provide financial documents to support your request.
- UnionBank will assess your credit history and income before making a decision.
Security Bank
- Call Security Bank’s hotline at (02) 8887-9188 or use their website to request an increase.
- Submit necessary income documents like your latest three-month payslip, certificate of employment, or latest ITR.
- Security Bank will evaluate your financial standing to determine your eligibility for a higher limit.
HSBC
- Call HSBC customer service at (+632) 8858-0000 or (+632) 7976-8000.
- Your request will be subject to credit evaluation, and you may need to submit income documents.
- HSBC will notify you of their decision after reviewing your application.
Maybank
- Contact Maybank customer service at (+632) 8588-3888 or the toll-free hotline at 1-800-10-588-3888.
- Applications for a limit increase are subject to credit evaluation.
Benefits of a Higher Credit Limit
Increasing your credit limit offers several benefits:
- Lower Credit Utilization Ratio: A higher credit limit reduces your credit utilization ratio, which is the percentage of your available credit that you’re using.
A lower utilization ratio can improve your credit score.
- Potential Credit Card Upgrade: Some banks might upgrade your credit card when your limit is increased, providing additional benefits and rewards.
- Lower Interest Rates on Loans: A higher credit score, often a result of a lower credit utilization ratio, can make you more attractive to lenders, potentially leading to lower interest rates on loans.
- Increased Purchasing Power: With a higher credit limit, you have more flexibility to make large purchases or take advantage of sales and discounts.
- Simplified Finances: With a higher limit on one card, you may choose to close other cards with lower limits, reducing the complexity of managing multiple accounts.
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Conclusion
Requesting a credit limit increase in the Philippines can be a straightforward process if you approach it correctly.
By maintaining a good credit history, providing clear and logical reasons for your request, and choosing the right bank-specific procedure, you can improve your chances of approval.
A higher credit limit offers numerous benefits, from better credit utilization to enhanced purchasing power, making it a valuable tool for managing your finances effectively.
Remember to always pay your bills on time and avoid maxing out your credit card.