I think tgeoklin meant:
take your total gross annual income (x), then divide it by 3 (x/3)
take your total CL from all cc (y), not just the outstanding only (O/S?)

if x/3<y*0.1, then you are overexposed

If this is the case, mine still much below of overexposed level. It only count CC CL? How about other loan?

@alexwsk,
Er but shouldn't the equation be:
x/3>y*0.1 ?! Er sorry ah, there's a reason I phailed Maths! [er I think I'm begining to understand!]

@GHz,
Need to take into account ALL loans lah

Anyhow, using the above calculation, my X = 2Y ! meaning my

x/3 < Y*0.1

Damn.. I'm super duper exposed !

This post has been edited by tinkerbel: Jul 30 2009, 11:16 AM

General guideline for home loan is that your monthly installment must be within/should be around 1/3 of your gross monthly income after taking into account other loans. Why is it related to the number of CCs in the event that one has no cc debts? My family members flip properties every now and then, home loan financing is not an issue at all.

@winner,
Yes but should U have v high unsecured loans (via CC) the banks will also look into that; of course if U've been a good paymaster and all through the years the bank probably overlook it.

My query is that, why do we need to worry about our total CL if we are good paymasters? With the recent 5/95 offerred by most of the developers, I managed to get the package, but my friend who bought the same obtained 20/80 instead.

@tinkerbel
if your total income is more than your total cl, you can't be over exposed

@alexwsk,
Yes I got the equation finally and well like I said in my post above, my X exceeds Y (through the calculation of X/3 and Y*0.1) by 2x so I am exposed, no?!

iYah.. anyways I don't care lah expose or not - when I need to cut and reduce CL to RM1k then onli do that lah

@tinkerbel

wa, now u got me confuse
anyway, time for lunch, no need to care bout that too much, at least not until u're going to apply for loans/new CC

@alexwsk,
As in.. after I use that calculation, I get:-

RM10000 (X) < RM20000 (Y)

interested to apply the new amex gold card.
cc agent pls contact me.
Currently, i am maybank cc gold card holder
thanks

Outstanding amount only or total amount of loan?

Its inclusive of all facilities granted & outstanding, whichever is higher, wheather utilised or not also included ie. CC limits for example

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Added on July 30, 2009, 1:02 pmIt does not care about the number of cards you have but how much your potential exposure is. But if your income > financial exposure, then sure no problem

This post has been edited by tgeoklin: Jul 30 2009, 01:03 PM

tinkerbel: well from the ad, looks like the DA gifts are any purchases (can't remember if need to be in sigle receipt) at Sunway Piramid.

last weekend was at MV, stupid promo for HSBC and MC for spending above RM200 does not apply to MJ, JJ, Carrefour and some other places so charged my transactions to AMEX at MJ and get 2X points.

as for the over exposed calculation, looks like we having math lessons. For my case the X/3 > 0.1Y, guess I still ok lah and can go get more cards, haha.

Good paymaster only comes into play upto a certain limit. But since my CL itself already at the top tier level, not including other loan commitments, its not surprising for them at all. In fact I am currently ineligible to be approved for any CCs for good now, unless its with my existing banks ie. shared CL

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Added on July 30, 2009, 1:17 pmYes you can, and if need be, then only cancel

This post has been edited by tgeoklin: Jul 30 2009, 01:17 PM

OK, I recalculate mine,

before home loan

my x:y ratio is 6:5 hmmm still OK

after home loan become 12:17. over exposed already.

so it may be difficult to apply for another loan or CC right?

edit : just remember that, 2 months after my home loan is approved, I apply for scb justone card. The application was approved & they granted high CL to me. Now I wonder that even I am over exposed, still scb can approve my card application with such a high CL.

This post has been edited by GHz: Jul 30 2009, 02:14 PM

First off, if the loan just approved before full drawdown will not be captured in CRIS yet. Secondly, if with the same bank that provides your CC then easier as then its somewhat secured. Further, the formula scale per your exposure and what's yr defination of high CL is quite subjective as well, right?

This post has been edited by tgeoklin: Jul 30 2009, 02:38 PM

Well, I calculate mine, Guess I still can apply tons of credit card in order to get overexposed...

Ohhh I see. btw my home loan is with cimb & new cc with scb

What I mean high CL is the new CC has 50% higher then my previously highest CL.

Well, put it this way, if say existing card is RM1K CL, even with a 100% increase, its insignificant, thus as your exposure level increases then the restrictions starts setting in