1. What is the Maybank Credit Limit Formula?

The Maybank credit card limit formula estimates the maximum credit limit a customer might qualify for based on their income, expenses, debt-to-income ratio, and the card's interest rate. This helps applicants understand their potential creditworthiness.

2. How Does the Calculator Work?

The calculator uses the Maybank credit limit formula:

Where:

• \( I \) — Monthly income (MYR)
• \( E \) — Monthly expenses (MYR)
• \( F \) — Debt-to-income ratio factor (typically 0.3-0.4)
• \( R \) — Monthly interest rate (APR / 12)
• \( CL_{max} \) — Maximum credit limit (MYR)

Explanation: The formula calculates how much credit the bank might extend based on your disposable income (income minus expenses), adjusted by risk factors and interest rates.

3. Importance of Credit Limit Calculation

Details: Understanding your potential credit limit helps in financial planning, avoiding multiple applications, and managing credit utilization which affects credit scores.

4. Using the Calculator

Tips: Enter accurate monthly income and expenses. The debt-to-income factor is typically 0.35 (35%) but may vary based on credit history. APR is usually 15-18% for Maybank cards.

5. Frequently Asked Questions (FAQ)

Q1: Is this the exact limit Maybank will approve?
A: No, this is an estimate. Final approval depends on credit history, existing debts, and bank policies.

Q2: Why does the interest rate affect credit limit?
A: Higher interest rates compensate for higher risk, allowing banks to offer larger limits.

Q3: What if my expenses exceed my income?
A: You may not qualify for a credit card until you improve your financial situation.

Q4: How can I increase my credit limit?
A: Increase income, reduce expenses, maintain good payment history, and request limit increases after demonstrating responsible use.

Q5: Does this apply to all Maybank credit cards?
A: The formula applies generally, but premium cards may have different underwriting criteria.