Many Malaysians hit a point where their credit card limit doesn’t quite fit their monthly spending anymore. Whether it’s because your income increased, your expenses grew, or you just want better financial flexibility, requesting a higher credit limit increase makes sense.

Before you call your bank or fill out that application form, here’s what you actually need to know about getting approved.

Why Most People Request Higher Limits

Malaysians typically request credit limit increases for two practical reasons.

Better credit utilisation ratio. Banks like seeing you use less than 30% of your available credit. If your limit is RM5,000 and you regularly spend RM3,000 monthly, that’s 60% utilisation. This signals to banks that you’re heavily reliant on credit. Increase your limit to RM10,000 and you’re suddenly at 30%, which shows banks you’re using credit responsibly, even though your spending hasn’t changed. This can improve your credit score over time, making it easier to qualify for loans when you actually need them.

More room for unexpected expenses. A higher limit provides flexibility for both planned and unplanned expenses, whether that’s a family emergency, home repairs, or essential replacements when something breaks down.

Does Requesting An Increase Hurt Your Credit Score?

It depends entirely on your bank’s process. When you request an increase, the bank needs to assess your creditworthiness. This check involves their internal data and external credit reports (like CCRIS and CTOS), and it can be done in one of two ways.

Soft inquiry means the bank reviews your file internally without creating a formal record. This doesn’t affect your score. Most Malaysian banks use soft inquiries for existing customers who’ve been paying on time.

Hard inquiry creates a formal record on your credit report. This can temporarily lower your score. The effect fades within three to six months as you continue making on-time payments.

Ask your bank what type of inquiry they’ll perform before submitting your request. If they use hard inquiries and you’re planning to apply for a home loan or car loan soon, consider waiting.

Documents Banks Typically Request

Malaysian banks may want to verify your income before approving higher limits. Standard requirements include:

• Recent payslips – Your last one to three months showing current salary and active employment
• EA form – Annual income statement from your employer, often required for increases above RM10,000
• Bank statements – Three to six months showing salary deposits
• Updated MyKad – Clear copy of both sides

Additional documents for specific situations: EPF statements, income tax forms (Borang BE) for self-employed, business registration (SSM) and financial statements for business owners, or commission statements for sales professionals.

Most banks accept digital submissions through mobile apps or online banking.

The Best Time To Request An Increase

Timing matters when requesting a credit limit increase. Most Malaysian banks require you to have held your credit card for at least six months before considering a limit increase, as this gives them enough data to assess how responsibly you handle credit. Some banks may require 12 months, particularly for new customers.

During this time, ensure you’re making on-time payments every month, keeping your credit utilisation below 30%, using your card regularly without leaving it dormant, and paying more than the minimum amount due.

You can request earlier than six months if you’ve received a substantial salary increase or promotion, cleared other debts and improved your debt-to-income ratio, or if your bank proactively invites you to request an increase. The best time to request is after updating your income information with the bank, such as following a salary increment or bonus. Avoid requesting immediately after missing a payment or during periods of high credit utilisation.

If your previous request was denied, wait at least six months before reapplying. Use this time to strengthen your financial profile by addressing the rejection reasons.

Income Requirements For Different Credit Limits

While every bank sets their own criteria, here’s what Malaysian banks generally look for.

Monthly Income	Typical Credit Limit	Card Type
RM2,000 to RM3,000	RM2,000 to RM5,000	Entry-level
RM3,000 to RM5,000	RM5,000 to RM10,000	Standard
RM5,000 to RM8,000	RM10,000 to RM20,000	Gold-tier
RM8,000+	RM20,000 to RM50,000+	Premium

Bank Negara Malaysia sets regulatory limits too. Your total credit limit across all cards shouldn’t exceed two times your monthly income if you earn below RM36,000 annually.

Banks also look at your credit history, existing debts, employment stability, and your relationship with them. You’ll have better chances if your salary goes to the same bank that issued your card, since they already see your income and spending habits, which makes approving your request much easier.

What To Do If Your Request Gets Declined

A declined request isn’t the end of the road. While it may be disappointing, rejection doesn’t mean your credit limit is permanently fixed. It simply indicates that your bank needs to see stronger evidence of creditworthiness before approving an increase.

Start by understanding why your application was rejected. Contact your bank’s customer service and ask which criteria you didn’t meet, what improvements could strengthen your next request, and when you can reapply. 

Next, review your credit reports. Check your credit reports to understand what banks see when evaluating you. Request your free CCRIS report from Bank Negara Malaysia’s website, which shows your credit facilities and repayment history across all Malaysian banks. You should also check your CTOS report, which provides a broader credit score and includes utility bills, telco payments, and trade references. Look for errors, late payments, high credit utilisation, or outstanding debts that could affect approval. 

Focus on improving your position over the next three to six months. Make every payment on time, keep balances below 30% of your limits, avoid new credit applications, and notify your bank of any salary increases. 

Once you’ve demonstrated consistent on-time repayments and maintained low credit utilisation for at least six months, you can reapply with confidence. You can also explore alternative options to manage your credit. Consider requesting an increase on a different credit card you already hold, asking for a temporary limit increase for specific expenses, using balance transfer promotions, or comparing credit cards to see if you’re using the right card for your spending patterns.

Behaviours That Improve Your Approval Chances

Actions That Help	Actions That Hurt
– Pay bills on time consistently – Keep credit utilisation consistently below 30%  – Inform your bank about income increases – Use your card regularly and pay in full  – Use multiple products with the same bank	– Requesting increases too frequently (space applications at least six months apart)  – Maxing out your cards regularly  – Missing payments  – Applying for multiple credit products simultaneously  – Providing inaccurate income information

Making Your Decision

Most Malaysians who’ve been using their cards responsibly for six months or more can request a limit increase without issues. If your spending regularly hits 50% or more of your limit every month and you’re paying your bill in full, it’s probably time.

The main thing to remember: a higher limit isn’t about spending more. It’s about having room to breathe when you need it, and keeping your credit utilisation in check.

Use your credit limit as a tool, not a target.

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