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Credit Card Limit Formula:
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The Credit Card Limit Calculator estimates the maximum credit limit a bank in Pakistan might offer based on your monthly income and a specific factor determined by the bank's policies.
The calculator uses the formula:
Where:
Explanation: Banks in Pakistan typically use a multiplier based on your income level and creditworthiness to determine your credit card limit.
Details: Understanding your potential credit limit helps in financial planning, managing credit utilization, and choosing the right credit card that matches your spending needs and repayment capacity.
Tips: Enter your monthly income in PKR and the factor provided by your bank. Contact your bank for their specific factor as it may vary between institutions and individual credit profiles.
Q1: What is a typical factor used by Pakistani banks?
A: Most banks in Pakistan use factors between 1.5 to 3.0, depending on the applicant's credit score, employment stability, and overall financial health.
Q2: Can I get a higher limit than calculated?
A: Yes, some banks may offer higher limits based on additional factors like existing relationship with the bank, collateral, or exceptional credit history.
Q3: Does this calculation apply to all credit cards?
A: While the basic formula is standard, premium cards may have different calculation methods or higher multiplier factors.
Q4: How often can I request a credit limit increase?
A: Most banks allow limit increase requests every 6-12 months, subject to income verification and good repayment history.
Q5: What if I have multiple income sources?
A: You can include all regular income sources when calculating your monthly income, but be prepared to provide documentation for verification.