Ways to Increase Your Credit Card Limit and the Documents You’ll Need

A Simple Guide to Increasing Your Credit Card Limit

Key Takeaways

In Singapore, credit card limits are regulated by the Monetary Authority of Singapore and are largely determined by factors such as your income level, age, and overall unsecured debt exposure. When banks decide on your credit limit or review an existing one, they look closely at your repayment history, how much of your available credit you typically use, and how long you have maintained a relationship with the bank.

Cardholders earning between S$30,000 and S$120,000 a year usually qualify for a total credit limit of up to four times their monthly income across all credit cards. For short-term needs, such as wedding expenses or travel bookings, a temporary credit limit increase may be suitable. These increases are generally approved for a limited period, often between 30 and 60 days. On the other hand, a permanent credit limit review makes more sense after a salary increase or an improvement in financial standing and usually requires updated income documents.

Holding multiple credit cards across different banks can increase your overall available credit, but this approach requires careful money management to avoid overextending yourself. While a higher credit limit offers greater flexibility, it also increases the risk of accumulating high-interest debt if balances are not paid off in full each month. For larger or long-term expenses, personal loans may be a more cost-effective option, as they typically come with lower interest rates and fixed monthly repayments.

Imagine planning a wedding, renovating a resale flat, or dealing with a refrigerator that breaks down at the worst possible time. You reach for your credit card, only to realise that your available limit is not enough to cover the expense.

For many Singaporeans, this situation is all too familiar. Credit cards are commonly used for cashback, air miles, or short-term cash flow management. However, banks often assign conservative credit limits, especially in the early stages of a career or during periods of income change.

This raises an important question. How do banks actually determine your credit limit? And if your UOB credit card limit feels restrictive, what realistic options do you have, particularly when a credit limit review or temporary increase request does not go as expected?

This guide explores how credit limits work and what you can do about them.

In many cases, credit limits were set years ago, based on income levels, spending patterns, or financial commitments that may no longer reflect your current situation. A limit that once felt generous can quickly become restrictive as lifestyles change. In Singapore, major expenses such as weddings, travel deposits, and home-related costs often occur close together rather than being spread out over time. This explains why even disciplined cardholders with perfect repayment records may feel constrained.

Understanding how credit limits are determined, and knowing when it makes sense to request a review, is just as important as knowing how to apply for an increase in the first place.

What Determines Your Credit Limit in Singapore?

Credit card limits in Singapore are not assigned at random. Banks operate within a clear set of unsecured credit guidelines issued by the Monetary Authority of Singapore. Before approving or reviewing a credit card limit, financial institutions such as UOB and Citibank are required to assess factors including your income level, age, and existing unsecured debt obligations.

Under the MAS unsecured credit framework, different limits apply depending on your annual income for cardholders below the age of 55.

For individuals earning S$30,000 or less per year, total credit card limits are capped at up to two times their monthly income. Those with annual incomes between S$30,000 and S$120,000 may qualify for total credit limits of up to four times their monthly income across all cards. Cardholders earning above S$120,000 are not subject to a regulatory cap, and banks are given the discretion to determine appropriate limits based on their internal risk assessments.

• Income ≤ S$15,000: Capped at S$2,500

• S$15,000–S$30,000: Up to 2× monthly income

• S$30,000–S$120,000: Up to 4× monthly income

In reality, unless you earn a high six-figure income or are able to demonstrate significant assets, most cardholders remain within these income-based tiers even after a successful credit limit review.

Although the Monetary Authority of Singapore sets the maximum regulatory ceiling, individual banks still apply their own internal risk assessments when deciding how much of that limit to extend. This is why two cardholders with the same income can end up with very different credit limits. Factors such as the length of your relationship with the bank, your track record of timely repayments, and how much of your available credit you typically use each month all play a role in the final decision. Banks also assess your total unsecured credit exposure across the financial system. While MAS limits apply on a per-bank basis, high utilisation across multiple cards can be viewed as a higher risk. This often results in more cautious approvals during a credit limit review. In practical terms, maintaining low utilisation and consistent repayment behaviour can be just as important as earning a higher income when it comes to increasing your available credit.

An Alternative to Pushing Your Credit Limit: Personal Loans

Life does not always align neatly with your annual appraisal cycle. When expenses rise unexpectedly, banks generally offer two options: a temporary credit limit increase or a permanent credit limit review.

Take the example of a couple planning a wedding. Venue deposits, catering payments, and overseas honeymoon bookings are often spread across several months. Even with stable incomes, these clustered expenses can quickly exhaust a standard credit card limit, especially when merchants place temporary holds on large deposits.

Frequent travellers face a similar challenge. Hotel pre-authorisations, airline ticket purchases, and overseas spending can consume available credit faster than anticipated, even when balances are fully repaid later. In these situations, the issue is not overspending, but timing.

Another common scenario involves mid-career professionals whose income has grown steadily over the years while their credit limits remain tied to earlier salary levels. Without initiating a credit limit review, these cardholders may feel restricted despite having strong repayment capacity.

Temporary Credit Limit Increase for Short-Term Needs

A temporary credit limit increase is intended for specific and time-bound situations such as weddings, overseas travel, or medical expenses.

For UOB cardholders, a temporary credit limit increase requested through the UOB TMRW app typically lasts up to 30 days, subject to approval. Common reasons include travel, hospitalisation, or compassionate grounds.

However, some cardholders experience an unsuccessful outcome when applying for a temporary increase. This often occurs when existing credit utilisation is high, income documents are outdated, or the cardholder is already close to the MAS regulatory cap.

When a temporary increase is rejected, the explanation provided is usually limited, which can be frustrating. In most cases, the decision reflects automated risk thresholds rather than a negative assessment of overall financial health. Reapplying immediately without any changes to outstanding balances or income documentation rarely leads to a different result. In such situations, it may be more effective to consider a permanent credit limit review or explore an alternative financing option that better suits the underlying need.

Credit Limit Review for a Permanent Increase

If your income has increased or your financial profile has improved, a permanent credit limit review can result in a lasting increase. Both UOB and Citibank allow digital submissions, typically requiring recent payslips or an IRAS Notice of Assessment, updated employment information, and a consistent repayment history. A credit limit review is particularly relevant after job changes, promotions, or years of steady bonuses, where the original credit limit no longer reflects your current earning capacity.

Multiple Cards and Managing Credit Responsibly

MAS credit caps apply on a per-bank basis rather than across all financial institutions. This means someone earning S$36,000 annually could hold separate credit cards with UOB, Citibank, and DBS, each with its own allowable limit. While this increases total available credit, it also increases the need for discipline. Managing multiple cards requires careful oversight, as missed payments or consistently high utilisation across accounts can quickly outweigh the benefits.

How to Apply for a Higher Credit Limit with UOB and Citibank

UOB cardholders can apply for a credit limit review or temporary increase through UOB Personal Internet Banking or the UOB TMRW app. Using MyInfo allows for faster verification. Permanent increases are processed through a credit limit review, while temporary increases are typically approved for around 30 days. Citibank cardholders can access credit limit options through the Citi Mobile App. By navigating to the selected card and viewing available credit, users can choose between a permanent or temporary increase. Temporary increases may last up to 60 days, depending on approval.

Temporary or Permanent Increase: Which Is Right for You

A temporary increase is best suited for one-off or short-term expenses. A permanent increase is more appropriate when your income or spending patterns have changed on a long-term basis.

It is important to remember that a higher credit limit does not mean additional income. With credit card interest rates often exceeding 26 percent per annum, carrying balances over time can become costly very quickly. There is also a crucial distinction between available credit and actual cash flow. While a higher limit provides flexibility, it does not reduce monthly repayment obligations if balances are rolled over. For some borrowers, the comfort of having more credit can obscure the long-term cost of revolving debt. This is why understanding the nature and duration of an expense is just as important as securing approval for a higher credit limit.

Aspect	Temporary Credit Limit Increase	Permanent Credit Limit Review
Purpose	Short-term, one-off expenses	Long-term increase based on income or profile
Typical Use Cases	Weddings, overseas travel, medical bills, large deposits	Salary increment, job change, improved financial standing
Duration	Usually 30 days for UOB, up to 60 days for Citibank	Ongoing until next review
Documentation Required	Often minimal, may not require income documents	Recent payslips or IRAS Notice of Assessment
Approval Criteria	Current utilisation, MAS cap, recent repayment behaviour	Income growth, repayment history, overall credit profile
Impact on Future Reviews	Neutral if managed well	Can improve long-term credit flexibility
Best For	Timing mismatches in cash flow	Structural changes in earning capacity

What Banks Look At During a Credit Limit Review

When assessing whether to approve a higher credit limit, banks typically evaluate a combination of financial and behavioural factors rather than income alone.

Assessment Factor	Why It Matters
Monthly and Annual Income	Determines the maximum allowable limit under MAS rules
Credit Utilisation Ratio	High usage suggests higher reliance on credit
Repayment History	Late payments reduce approval likelihood
Length of Relationship with Bank	Longer relationships often signal stability
Total Unsecured Debt	High exposure across banks increases perceived risk
Employment Stability	Frequent job changes may raise caution
Existing Credit Limits	Helps banks assess overall exposure

This explains why two individuals earning the same salary may receive very different outcomes during a credit limit review.

Practical Tips to Improve Approval Chances

Cardholders looking to increase their credit limit can take several practical steps before applying.

First, aim to reduce existing balances so that utilisation remains low, ideally below 30 percent of your total available credit. Second, ensure income documents are current and reflect your latest salary or bonuses. Third, avoid submitting multiple applications across banks within a short period, as this can signal financial stress. Finally, maintain consistent repayment behaviour, as even a single late payment can negatively impact approval decisions.

Take Control of Your Credit Today

Understanding how credit limits work and knowing when to request an increase can make a real difference in managing your finances. Whether you need short-term flexibility for a one-off expense or a permanent increase to match your growing income, being prepared with the right documents and a clear repayment strategy is key.

At 1133 Money Changer, we understand that every financial situation is unique. While banks set limits based on regulations and risk assessments, careful planning and proactive management can help you unlock the credit you need, when you need it. Before applying for a higher credit limit, review your current utilisation, ensure your income documents are up to date, and consider whether a temporary increase, permanent review, or alternative financing like a personal loan is the best fit. Take charge of your financial flexibility today. With the right approach, you can make your credit work for you, not the other way around.