Explainers
Published Date: 30 May 2017

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.

Note: FIs must also check that the borrower meets the Credit Limit Management Measure requirements before increasing their credit limit.

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.