Limit Control System (LKS): A system provided by KKB (Credit Bureau of Turkey) that allows customers' limit details to be checked in real time. It provides member banks (or institutions) with information sharing regarding consumers' credit card limits.
According to the regulation made by the BRSA (BDDK) in the banking and credit cards law, the total credit card limits of someone who is a new credit card holder:
- Cannot exceed 2 times their income for the first 1 year,
- Cannot exceed 4 times their income in the second year.
The Limit Control System was established in order to comply with the legal regulation published by the BRSA. All institutions that issue cards are required to report their card limit information to LKS. Credit card limit information received from the relevant institutions is consolidated on a per-customer basis in LKS, allowing card-issuing institutions to operate in a manner compliant with the single-limit application. The LKS system fully enables banks to act in a more controlled manner. Thanks to this system, if a person already has 2 credit cards and applies for another credit card with a higher limit, the LKS rules come into effect. If the total limit would have an effect that exceeds the person's income, closing one or both of the 2 credit cards is proposed. Otherwise, credit cards that exceed a person's income level can never be granted. This is a legal requirement.
During a new credit card application, at the stage of allocating a card limit, the institution that will issue the card (usually a bank) checks through LKS whether there is a restriction on the customer's limit or how much limit headroom is available. If a credit card application has been approved but a limit could not be allocated to the card, the reason is most likely that the customer's limit in LKS is not available.
