How many times can a credit card limit exceed minimum wage? Credit cards are the most popular banking product that is widely used today. Modern cards can be used in various cash transactions, including in everyday life, they greatly facilitate a person’s life. In order to take advantage of credit cards, a large number of consumers get them in banks.
How Many Times Can a Credit Card Limit Exceed Minimum Wage?
Banks independently set limits for those who applied for a credit card until last year. According to the new rules, credit card limits are determined within the framework of the final project approved since the beginning of 2014. According to it;
- For people whose income level cannot be determined, banks can provide a minimum limit corresponding to the amount of the established minimum wage.
- The size of the credit card limit for the person who applies for the first time is based on the average of his / her monthly and annual income. Usually the card limit will be twice the minimum wage for the first year.
- The limits may be increased to four times the minimum wage in subsequent years.
- Credit card limits may depend on the demand of cardholders, provided that they have high credit confidence in banks.
- If the minimum payments are not made within two consecutive months, the use of the credit card will be frozen and re-use will be possible only after the full amount of the debt has been paid.
As a result of these actions and rules, expenditures exceeding the budget of the population are prevented. And the financial crises that cardholders may have due to credit card debt are also prevented.