1. What is the Maybank Credit Limit Formula?

The Maybank credit limit formula estimates the maximum credit card limit based on your income, expenses, debt-to-income ratio, and the card's interest rate. It helps applicants understand their potential credit limit before applying.

2. How Does the Calculator Work?

The calculator uses the Maybank credit limit formula:

Where:

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

Explanation: The formula calculates how much credit you could theoretically service based on your disposable income and the bank's risk tolerance.

3. Importance of Credit Limit Calculation

Details: Understanding your potential credit limit helps in financial planning, avoiding multiple applications, and managing expectations before applying for a credit card.

4. Using the Calculator

Tips: Enter accurate monthly income and expenses. Use the standard debt-to-income factor (0.35) unless you know your specific ratio. The typical Maybank APR in Philippines is around 36%.

5. Frequently Asked Questions (FAQ)

Q1: Is this the exact formula Maybank uses?
A: While based on standard banking practices, each bank has proprietary algorithms. This provides a reasonable estimate.

Q2: Why does APR affect credit limit?
A: Higher APR means higher risk for the bank, which may reduce your credit limit to mitigate their risk exposure.

Q3: What's a good debt-to-income factor?
A: 0.35 is typical for Philippines. Those with excellent credit may qualify for 0.4, while riskier applicants may get 0.3.

Q4: How can I increase my credit limit?
A: Increase your income, reduce expenses, maintain good credit history, and build relationship with the bank.

Q5: Does this include credit card fees?
A: No, this is a simplified calculation. Actual limits may consider annual fees and other charges.