FAQs

Individuals can use a Borrowing Power Calculator to obtain estimates on their credit limit.

Borrowing power is also known as borrowing capacity. It is the amount of credit that lenders will approve to individuals for loans.

Lenders review employment stability when assessing credit limits. Moving into a new employment scenario may impact the borrowing power but other factors would be considered.

Higher credit scores typically attract higher borrowing power. To receive a specific credit limit, applicants with poor credit scores should contact a lender or broker for an assessment.

The credit score is just one of several factors that lenders assess when approving credit limits. The rejection may be a result of income level, debt level, other financial commitments or employment situation.

Monthly financial commitments and living expenses are assessed in approving credit limits. Having other loans and high credit card balances may result in lower borrowing power.

No. Lenders assess borrowing capacity according to their own guidelines. This can result in different amounts from different lenders.

Secured loans typically have higher credit limits than unsecured loans. The purpose for the loan may also impact the amount that lenders are prepared to lend.

Loan applications are reported to Credit Reporting Agencies and multiple applications can negatively impact the credit score. Individuals can use a calculator for estimates from different lenders prior to application, without impact on credit score.

Borrowing capacity can change over time as an individual’s circumstances change. Reducing debt levels and monthly expenses, increasing income, reducing credit card limits even if not being used, may contribute to increasing borrowing capacity.