How Credit Card Limit Works In Malaysia

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Ever wondered why your bank gave you the credit limit that it did? Ever wondered why your maximum accessible credit is much lower or higher than your friends’? Read on to find out about the rules that govern credit card limits in Malaysia.

Income earners of RM36,000 p.a. or less

In Malaysia, cardholders earning RM36,000 or less in a year are bounded by the following rules:

– An individual can only hold principle cards from a total of two credit card issuers
– The maximum limit extended shall not exceed two times of his monthly income per issuer

The above measures were introduced by Bank Negara Malaysia (BNM) in 2011 in a bid to inculcate sound financial and debt management among cardholders in Malaysia, and was implemented in 2013.

What this means to you if you earn RM36,000 or less per year
– You can own multiple cards offered by two banks of your choice in Malaysia only.
– Your spending limit is two times of your monthly salary for each bank which gives you a total amount of credit of four times of your monthly salary from two banks.

Example: If your monthly salary is RM2,000, your credit limits of 2 X RM2,000 with Bank A and Bank B will give you a combined limit of RM8,000.

Income earners of more than RM36,000 p.a.

As of 2013, there are no specific measures from BNM with regards to the credit limit for cardholders earning more than RM36,000 a year.

What this means to you If you earn more than RM36,000 per year

– You can own multiple cards with any number of banks in Malaysia, taking into consideration that each card commands a service tax of RM50 per principle cardholder per year.
– You are still bounded by the maximum credit accessible on your credit cards but they are imposed by the banks at their discretion and not by BNM.