JACK asked 9 years ago
Hi Sir
I’ve done many research on website like FICO / Experian stated that higher credit limit might hurt your chance to get mortgages loan approved even the credit card utilization is low.
Now this start worrying me as I currently owned 3 credit card and a Overdraft account with total available credit limit RM 30000, but I always keep outstanding balance as low as 10 % and paid promptly on time. So do you think Cancelling Credit Account or Request to reduce credit card limit is a wise move ? I understand either or both way will hurt my credit score / DSR too .
I would like to know sir opinion on this matter. Thank you & best regards.
KCLau Staff answered 9 years ago
Hi Jack, the things you read might not be applicable here in Malaysia.
The banks here look at your outstanding credit card balance, not the credit limit.
DSR calculation by banks take into account 5% of your outstanding credit card balance as your monthly commitment. There is no need to reduce your credit limit.
This is as far as I know on the date of writing this.
Zachary Chong
replied 6 years ago Hi KC, I have just watched your video on credit card A-Z about getting as many credit cards as possible for perks and keep total credit limit utilization low under 30%. Will this affect my future loan for mortgage in one or two years time? Cos your above reply is 4 years ago and I am not sure if the situation is still the same as now. Just want to double confirm with you. Hope to read your reply soon.
KCLau 
Some banks might look at the credit limit of your cards and could make judgement based on that to decide your mortgage approval. Which bank will do that? I am not sure.