Increasing a Borrower's Credit Limit
Financial institutions (FIs) should conduct a fresh credit assessment before increasing a borrower’s credit limit.
Before increasing a borrower’s credit limit, financial institutions must check the borrower’s:
- Income, using documents dated less than 3 months before the limit increase request.
- Credit-related information, through Credit Bureau Singapore or DP Credit Bureau.
Additional Credit Card Held with the Same FI
If a borrower is applying for a credit card with an FI and already holds another credit card from the same FI, a fresh income and credit bureau check is not required if both these criteria are met:
- The additional credit card shares the credit limit of the existing credit card.
- The borrower’s aggregate credit limit is not increased.
However, if the additional credit card results in an increase in the borrower’s aggregate credit limit, a fresh income and credit bureau check is needed.
Checks on High-Income Borrowers
For a borrower who was granted a credit card or unsecured credit facility based on either:
- An annual income of at least S$120,000.
- Net personal assets exceeding S$2 million.
In place of income documents, the borrower can choose to provide documents as evidence that their net personal assets exceed S$2 million.
The documents must be dated within 3 months from the date the credit limit will be increased.
Note: FIs must still conduct a credit bureau check for such borrowers.