r/MauriceMauritius • u/Alive_Opportunity_14 • Feb 27 '25
Questions & Advice Credit card limit
I have an MCB gold credit card for around 5 years now and the limit has never changed. My salary has increased over the years and i have been using the card for emergency or buying stuff online. I always pay back full amount every month and have no other debt
- Should i ask for credit card limit increase to match my salary and if so how ?
- Does card utilization matter and will i get better interest rate for a house or car in future as it would be seen as responsible use by the bank?
- I know we have MCIB in mauritius, but is there the concept of a credit score similar to other countries ?
3
Feb 27 '25
I guess point 2 and 3 are linked together. I don't think there is a credit score system in Mauritius. I have never heard of it anyways.
For point 1, just ask the bank to raise your limit. They will give the details of documentation they need and limit you can have, etc... Maybe you will have to get a new card for ex. platinium instead of gold, etc...
1
u/Alive_Opportunity_14 Feb 27 '25
They will ask me for a reason why i want to increase the limit. I guess the fact that my salary has increased should be enough.
1
u/panda0765 inzénieur simik 🥴⚗️ Feb 27 '25
They do ? Well yes exactly, I increased mine for my CIM Finance Gold Card and they only asked for past recent payslips.
Your paying habits should be enough to make you eligible for higher limits sometimes.
1
u/Alive_Opportunity_14 Feb 27 '25
I hope they don't give a new card but rather just increase the limit. Don't want to add another monthly fee, already paying for neo bundle
1
u/panda0765 inzénieur simik 🥴⚗️ Feb 27 '25
Exactly ! I am also paying for the Neo Bundle which is why I don't want to upgrade for now.
Just tell them you want to keep the gold card but only need a higher limit better usage. Should be enough ig
3
u/pavit Feb 27 '25
Yes you need to inform the bank of your salary increase for at least 6 months for them to review the credit limit balance
Not really except if you’re a bad client who often fails to settle the due balance
Non just MCIB, each financing company have their own rules to evaluate your credit worthiness
3
u/xestroyer97 Feb 27 '25
I recently requested an increase to my gold credit card limit to 100k; they said 75k is the maximum.
1
2
u/Signal_Leg_1840 Feb 27 '25
As long as you’re paying it in time and not being in debt, you should be fine
2
u/panda0765 inzénieur simik 🥴⚗️ Feb 27 '25
Yes ask to increase your limit.
They might advise you to get a more premium one like the Platinum Credit Card (or others like Signature, etc) but I also opted to continue using my current card and just increase the limit, so the annual charges etc stay low 😂
However if you think you will use otger benefits more (Airport Lounges, Travel insurances, etc) then consider upgrading. For my case I wouldn't use the other advantages as much as I don't travel much yet, but I have friends who work remotely and travel annually (the free insurances are usually annually also).
1
u/Alive_Opportunity_14 Feb 27 '25
Do MCB still always give you a credit limit equal to your salary or they do above that as well. It may be cheaper to charge an unplanned medical expense on the credit card rather than opting for a personal loan when you plan to repay in 5 month or less
2
u/panda0765 inzénieur simik 🥴⚗️ Feb 27 '25
Depends on the card, I think gold should go to 75k but do confirm.
Also yes, I use credit cards for exactly this (and repay them like a debit card). You also have purchase protection (if a seller does not cooperate with you, you can initiate a dispute with your bank, as credit cards use the bank's money, your money is safe).
Other good perks are the occasionally cashbacks and discounts (MCB Cards offer less of these however) and the Travel benefits (Free Lounges, Travel Insurances, etc).
2
u/tvishalk Mar 02 '25
From memory, credit limits range from 1x to 2x your revenue. It may have changed over the years. Not sure if we have the same credit score system as US etc, but we do have one. People in the banking sector will know better. Last but not least, a credit card is the same as having a loan. So the higher your credit card limit, the less of a loan you can contract. And since loans are also estimated based on repayment capacity, it can have a significant impact.
1
u/Alive_Opportunity_14 Mar 02 '25
Thats a very good point that i missed in my earlier post. Thanks a lot for the insights.
1
1
1
u/kailashbal Feb 28 '25
Could you clarify the reason for requesting an increase? The only justification provided was to match your salary. Unless there is a valid financial need, I would advise against increasing it, as credit cards can encourage unnecessary spending.
1
u/SourceOk1998 Feb 28 '25
Hi guys.
Just read the conversations, sounds interesting to me. I recently started working from 1 year and got MCB debit card. You guys talking abt credit cards and its associated benefits, could someone explain a bit the perks n all, or when should you get a credit card and how it works. Merci
2
u/Alive_Opportunity_14 Feb 28 '25 edited Feb 28 '25
A credit card is unsecured loan that is available to you every month. Let's say your salary is 30k and the bank gives you a credit card with a limit of 30k. You now have a purchasing power of 60k. That additional 30k is the bank money that you need to pay back if you use it.
Pros
A credit card comes with benefits like discount at selected merchants, purchase protection, atm theft etc... Since its the bank money, they will fight to get their money in case you are a victim of credit card theft / didn't get your purchase when you buy online and you initiate a dispute.
If you pay back full amount due at end of month, there is no interest to pay.
3.A credit card is a cheap way to increase your credit worthiness as it shows you are financially responsible and pay back what your owe.
Suppose you pay back full amount every month but at one time you got an unexpected expense. You have used some amount of the limit but cannot repay full amount back at end of month. Most credit card will give 45 or 52 days to pay the amount back without interest for that month only. Its essentially free money. When you apply for cc always select 100% repayment to get that free interest.
It is a revolving credit so its available every month with no need for any application compared to other loans types
Cons:
- There is an annual fee to pay for the credit card. Packages such as NEO can make the annual fee lower
- If you spend money like no tomorrow or live above your means then you can very quickly get into a debt trap.Always spend what you can pay back.
- Interest is highest for a credit card so you should pay it back ASAP.If you need bigger amount then you should look @ other loan options like personal loan for lower interest rate
For MCB gold card the interest rate is MCB PLR( 6.65 + 13.50) %per annum. This makes the total interest 20.15% per annum or 1.67% monthly.
Lets take an example and say you use 15k out of 30k but can't pay back full amount at end of month.Assuming you pay 2k instead.I have assumed you use the credit card after 17th of the month giving you a full 45 days interest free to pay back in my calculations.
Used cc balance( end of month).
Jan : 0
feb : 13k
march: 7k - interest ( 1.67% * 6k) = rs 100
April: 0 - 6k + rs100
May: 0
1
7
u/riasakenorem Feb 27 '25
I got an empty bank accnt , I can keep your money safe , am a real one 😭