As credit card use becomes ever more widespread, we can now meet almost all of our needs without using cash. Given that most of our spending goes through credit cards, and considering the inflation rates in our country, the need to raise card limits becomes even more important.
So can a credit card limit be increased without the customer's instruction?
The customer must give instructions before a credit card limit can be increased.
Can a credit card limit be increased periodically by the bank?
A periodic credit limit increase is an automatic limit increase that banks carry out at regular intervals, based on the customer's instruction. The bank needs the cardholder's instruction before it can carry out periodic limit increases. Giving that instruction just once is enough for the bank to keep increasing the limit periodically going forward.
If your spending never comes close to your card limit, it is in your interest not to give instructions for periodic limit increases. This is because, if your card information is ever compromised, your exposure is as large as your card limit. The higher your card limit, the greater the risk you carry.
What do banks base periodic limit increases on?
First of all, the bank can only evaluate a periodic limit increase if the cardholder has given a periodic-increase instruction. For customers who have given that instruction, the bank reviews the credit card limit at regular intervals.
- If you pay your card balance regularly
- If your card limit is lower than four times your salary
- If the card limits you use at other banks are not very high
- If your card spending is regular, banks will automatically increase your card limit.
Banks generally inform customers before increasing their limit. If you have given an automatic limit-increase instruction and want to cancel it, you can call your bank's customer service to cancel that instruction.
Is there a cap on periodic limit increases?
There is a legally defined upper limit for credit cards. Under the relevant regulations, your credit card limit can be at most,
- twice your annual income in the first year, if you are using a credit card for the first time
- four times your monthly income in subsequent years.
For example, if your monthly income is 3,000 TL:
- if you obtained your first card within the last year, your card limit cannot exceed 6,000 TL.
- if you obtained your first card more than a year ago, your card limit cannot exceed 12,000 TL.