Credit Term

Credit Limit

The most you are allowed to borrow on a credit card at any one time. Bank Negara caps card limits for lower-income cardholders — if you earn RM36,000 a year or less, each card's limit is capped at twice your monthly income.

Your limit is set by the issuer based on your income and credit record. To protect against over-borrowing, Bank Negara's rules cap credit-card exposure for cardholders earning RM36,000 a year or less: the limit on each card is capped at two times your monthly income, and such cardholders may hold cards from a maximum of two issuers. Higher earners are assessed more flexibly by the bank.

A higher limit is not free money — it is a ceiling, not a target. Used well, a higher limit can actually lower your utilisation percentage (because your balance is a smaller share of a bigger limit), which can help your score, as long as you do not treat the extra room as an invitation to spend. Requesting a limit increase may trigger a review of your record, so time it when your conduct is strong.

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