Pakistani Banks and Credit Companies

[A1Kaid]

Guys I want to discuss Pakistani banks, how many are there? Names of them? Their service. As well as credit card availability in Pakistan. Can Pakistani people attain western credit cards in Pakistan? Like Visa and MasterCard? To be honest I've never seen a Pakistani in Pakistan ever have a credit card. Most just pay straight cash.


Let's discuss the various credit card companies in Pakistan. Also I think credit card feasibility can be a problem in Pakistan considering many stores may not have CC scanner machine to make the purchase. Then again if you go to up scale stores then it's available.

If any of you have CC in Pakistan tell me what kind of CC limit do banks their typically offer someone of good credit standing?


Just found this link a bit helpful

Pakistan Credit Cards

 

[Skywalker]

Buddy, I dunno what Pakistanis you have come across.the first credit I made was a visa card of city Pakistan in1990. In fact American express and diners club card was available much earlier than that. All big brands like visa, MasterCard, American express are available in Pakistan. Limit is based on your per month salary or your business status.

 

[Safriz]

keep in mind that credit card is th worst form of loan one can get..mits a sink hole..you spend years trying to pay small amounts due ti very high rates of interest..
first understand the term "APR" before you apply for any credit card.

 

[A1Kaid]

^ Credit cards are essential in 21st century modern life. You only are assiged high interest if one your credit standing or score is average of below average and you only pay interest if you're late on your payment.

So there is nothing wrong with credit cards but it depends on the user.

Buddy, I dunno what Pakistanis you have come across.the first credit I made was a visa card of city Pakistan in1990. In fact American express and diners club card was available much earlier than that. All big brands like visa, MasterCard, American express are available in Pakistan. Limit is based on your per month salary or your business status.

I thought these Credit Card companies were available. I guess I just never bothered to really ask people about their CC.

Though what percentage of Pakistanis you think have a CC? I don't think many even have one.

 

[Sugarcane]

keep in mind that credit card is th worst form of loan one can get..mits a sink hole..you spend years trying to pay small amounts due ti very high rates of interest..
first understand the term "APR" before you apply for any credit card.

Agreed - Credit Card is a marsh, it's very difficult once you got trapped, Initially i took credit card for every bank and didn't know how get trapped in huge loans. But i am lucky i realized it soon and discontinued using them. Now i only use my debit cards.

@OP - Dude Pakistan is not as much backward as you think. CC Scanner are available on medium to big stores, restaurants, medical stores etc, now even smaller business like mobile shops also have those. We have Visa/Master/American Express available and ATM cards are also backed by these services, so you can use your debit card as credit card even chip cards are available. My advice is always use your debit card and avoid credit cards

Though what percentage of Pakistanis you think have a CC? I don't think many even have one.

1. Many Pakistan who chose to get CC they have at-least 3, so your knowledge is not up to date.
2. If you can get all the advantages from your Debit Card than why go for CC unless you don't have money?

 

[A1Kaid]

Well the whole point of having a credit card is so you have a credit line, money available to you ready for use, especially for big ticket purchases, travel, medical expenses, etc.

I use my debit card mostly so I understand your pov. Though people need to stop thinking credit cards are evil that is an ignorant and immature understanding it's the users fault if they are unable to manage their credit balance.

@OP - Dude Pakistan is not as much backward as you think. CC Scanner are available on medium to big stores, restaurants, medical stores etc, now even smaller business like mobile shops also have those. We have Visa/Master/American Express available and ATM cards are also backed by these services, so you can use your debit card as credit card even chip cards are available. My advice is always use your debit card and avoid credit cards

This made me laugh, lol. Thanks for your input. I know Pakistan has developed and modernized in the past few years.

 

[livingdead]

^^^ in UK there is a big advantage of using credit card, over debit card. Not only you get interest free loan for certain period (say 1 month), you have protection against many things (like fraud, the seller going bust).

You carry risk of fraud in case of debit card transaction. (at least till it is decided in court, or your bank decides you are right).
In case of credit card, the card issuer is liable.

I never had a credit card, because I never needed, till recently. No wonder I have worse credit score than college going teenagers.

 

[Sugarcane]

I use my debit card mostly so I understand your pov. Though people need to stop thinking credit cards are evil that is an ignorant and immature understanding it's the users fault if they are unable to manage their credit balance.

I know it's users fault and more than 90% users are unable to manage these credit lines, People don't plan before purchasing that how they are gonna payback. And there are lot of lazy like me who miss the payment for no reason and have to pay penalties. I gave up my CCs around 4 years ago and not felt it missing, In Iran i can't use them and in other countries my debit card works.

 

[A1Kaid]

Buddy, I dunno what Pakistanis you have come across.the first credit I made was a visa card of city Pakistan in1990. In fact American express and diners club card was available much earlier than that. All big brands like visa, MasterCard, American express are available in Pakistan. Limit is based on your per month salary or your business status.

Interesting in US, credit card companies look at long term income i.e annual salary not monthly income. As one of the critical factors determining credit limit.

I know it's users fault and more than 90% users are unable to manage these credit lines, People don't plan before purchasing that how they are gonna payback. And there are lot of lazy like me who miss the payment for no reason and have to pay penalties. I gave up my CCs around 4 years ago and not felt it missing, In Iran i can't use them and in other countries my debit card works.

Agreed, credit cards should be for financially qualified and responsible people only. Irresponsible people hurt the credit card companies when they fail to repay and their hurting their own credit standing.

I know it's users fault and more than 90% users are unable to manage these credit lines, People don't plan before purchasing that how they are gonna payback. And there are lot of lazy like me who miss the payment for no reason and have to pay penalties. I gave up my CCs around 4 years ago and not felt it missing, In Iran i can't use them and in other countries my debit card works.

Sorry I'm not understanding you're saying your CC isn't functional in Iran? Why? Anything to do with sanctions?

 

[Sugarcane]

^^^ in UK there is a big advantage of using credit card, over debit card. Not only you get interest free loan for certain period (say 1 month), you have protection against many things (like fraud, the seller going bust).

You carry risk of fraud in case of debit card transaction. (at least till it is decided in court, or your bank decides you are right).
In case of credit card, the card issuer is liable.

I never had a credit card, because I never needed, till recently. No wonder I have worse credit score than college going teenagers.

around 1 month credit period is available everywhere, It's not actually 1 month for every transaction. Bank generate your statement on billing date and calculate interest at billing date, So if you pay all your liability before or on billing date than you don't have to pay any charges except cash withdrawals. and other thing is Insurance cover, in case of credit card they automatically add it and charge you premium (It's not free lol) and for debit card you can get it by your own choice.

 

[A1Kaid]

One benefit of using CC is many CC companies offer rewards such as cash back, flights/travel, secured transaction (and moneyback if something goes wrong), tickets to events, discounts at hotels, etc.

These are some of the many perks.


Your debit card will not do that.

 

[Sugarcane]

Interesting in US, credit card companies look at long term income i.e annual salary not monthly income. As one of the critical factors determining credit limit.

No, It's not just based on salary, bankers are not idiots in Pakistan, They follow all risk measurements, for example they see the credit reputation of employer, applicants credit history, applicants job status (they call employer), sometime they ask your neighbors about your reputation as well like they are going to give rishta of their daughter.

Sorry I'm not understanding you're saying your CC isn't functional in Iran? Why? Anything to do with sanctions?

Yes - Iran have it's own banking system credit/debit cards and is not linked with world because of sanctions.

 

[Icewolf]

Habib Bank is one... They bailed out Pakistan in 1948 I think...

 

[Sugarcane]

One benefit of using CC is many CC companies offer rewards such as cash back, flights/travel, secured transaction (and moneyback if something goes wrong), tickets to events, discounts at hotels, etc.

These are some of the many perks.


Your debit card will not do that.

Dear again - These perks are for those who can payback with getting caught in interest trap otherwise you are paying these perks out of your own pocket. And in Pakistan banks have started to give some small parks on debit car spending as well, lucky draws and discounts.

 

[Hyde]

well i don't know very much about credit cards in Pakistan but there are surely some Pakistan banks offering credit limits on credit cards. One of my family business is Road construction (in Pakistan) and I do remember my dad and chacha jee talking about credit limits of over 2-3 million rupees couple of years ago. So surely they do offer good credit limits like in Western Countries but the interest rate was so high that hardly anybody tries to borrow money by using the credit cards.

Even debit card is not very popular in Pakistan and my cousins despite having established business does not have a debit card in Pakistan. There would probably be only 4-5 ATM machines in my city (not sure) and the Bank cards are not as useful as they are in western countries due to less available of ATM machines and acceptance of such cards by the retailers.

My personal opinion only as i have not travelled to Pakistan since 2008 so may be the ground realities are now different