Pakistani Banks and Credit Companies

[Nishan_101]

Debit cards are the real cards for buying or shopping. I think you don't loose anything and now many Islamic banks are offering these cards with no service charges.

 

[Sugarcane]

University students in Pakistan are considered "kids" in Pakistan? Wow, here if you are 18 or older you are legally an adult and most University students are 18 or older, therefore eligible for a CC (at least by age).

Also, we are not talking about a "loan", do you not know the difference between a credit card and a loan? There is a technical difference.

Though you still did not answer the question, how old do you have to be in order to be eligible for a CC in Pakistan?

PS Don't think I am asking on my own behalf, as I have no interest in applying for a Pakistani CC, when I have my own American CCs. I am asking because I'm interested in knowing.

Technically you are considered kid if you are not earning and dependent on your parents, don't be mad , and Credit Card is actually a loan who said it is not? and i know you are asking just for knowledge.

Dear why you think that there will be significant difference in banking system of euorpean countries vs asian countries? Yes, rules and regulation & market have some impact on banking policies but basic framework is same everywhere.

if you are 18 or older you are legally an adult here as well, but banks don't give CC to unemployed.

 

[A1Kaid]

Your not considered a "kid" that's not even a technical term your considered a "dependent" if your parents claim you on their taxes. Mate some of the stuff your saying is really funny and that's why I thanked your posts because they made me laugh.

The fact you don't even understand the technical difference between a credit card and a loan is humorous as well you just lump it together in one category.

I actually found a good source to educate you on the difference between a credit card and a loan.

•credit cards are generally revolving debt, meaning you can borrow and repay over and over.


a personal loan is an installment where you borrow once and repay the debt over a period of time, reducing the debt with each payment

Source:BankingQuestions.com - Differences Between Credit Cards and Personal Loan

Banks in general don't give CC to unemployed for obvious reasons and they will lower the credit limit on someone who cannot pay back on time.

Dear why you think that there will be significant difference in banking system of euorpean countries vs asian countries? Yes, rules and regulation & market have some impact on banking policies but basic framework is same everywhere.

It's the prevalency that is different, Western countries since they are more developed have more credit companies more credit line more availability and nearly all places of service have credit card machines unlike Pakistan. This is why I want to learn how immersive are credit cards in Pakistani society, this is why I asked about homes, credit availability to you young adults. You didn't even understand why it's important for young adults to have credit... So I don't expect any real knowledge from you.

I can't believe you still consider a credit card and a loan as the same thing, it truly reflects your poor understanding.

 

[Sugarcane]

I can't believe you still consider a credit card and a loan as the same thing, it truly reflects your poor understanding.

Credit Cards & Loans are different forms of debt and credit card falls under unsecured debts category - So both are same thing "DEBT", i think it's enough for me to understand. anyway thanks for educating me

It was good to mess with you, i hope you didn't get offended. If you are than still i can't do anything about you. Enjoy

 

[Hyde]

Credit Cards & Loans are different forms of debt and credit card falls under unsecured debts category - So both are same thing "DEBT", i think it's enough for me to understand. anyway thanks for educating me

It was good to mess with you, i hope you didn't get offended. If you are than still i can't do anything about you. Enjoy

Agreed with most of your posts in this thread... i think either A1Kaid did not understand you or he did not explain the question properly but good to see you avoided his last post where he was little bit offensive and replied him patiently.

He probably hasn't heard the the term "Credit card loans" in his country... or may be the rules in USA are different to Europe. Here in UK, the rules are very much similar to Pakistan. If you are over 18 you are eligible to apply for credit cards but that does not mean you will get one as soon as you reach the age of 18. You have to show your employment background, financial background, residential address and enough evidences to convince the bank that you will be able to pay back on time. If you have not taken any credit before you will most likely be rejected and bound to choose credit cards with poor history (high interest rates of 30-40%) with small credit limit. You have to build your credit history before you could apply for better credit cards and this procedure usually takes 2-5 years with little exceptions for some people. In Europe if you are seeking good credit cards you must have

1) Emloyment status (working for more than an year in the same job is preferred)
2) Bank account with history of transactions (direct debits) and no payment late/missed payments or defaults on your account.
3) Registered in voting list (very important)
4) Stable home address(es) and did not change for too many times
5) did not have too many credit searches on your account

now this entire procedure starts after you are 18 years of age but it needs time to build your credit profile. You can obtain a credit card at the age of 18 but you will most likely be accepted for poor rating credit cards. In my case the first credit card I received was from Barclays with 29% apr... and the second card I received was from Capital one with 34%... later after building my credit history i was able to apply for credit card from Capital one with 9.9% apr and I literally had to wait for 3 years before I was accepted for good rating credit cards. In Pakistan also, if you have an established business you can apply for credit cards but it is not guaranteed your application will be successful. They like to see your financial background/employment status etc... and looking at the condition of the Pakistan, only most established people are able to obtain credit from the banks as they know poor people who are most likely miss payments are automatically rejected... The Banks are doing business so they give credit to only those who are most likely to pay back and it is the same case, be it in Pakistan, UK or America. A typical university student in Pakistan does not have a financial background so why will the banks give a credit card to those who are less likely to pay back?

I think A1kaid confused himself by asking too many questions and mixing them all-together. I think this discussion was not about revolving debts, unsecured loans or secured loans. DIfferent set of rules apply for all these 3 type of loans/credits/liabilities

 

[A1Kaid]

Credit Cards & Loans are different forms of debt and credit card falls under unsecured debts category - So both are same thing "DEBT", i think it's enough for me to understand. anyway thanks for educating me

It was good to mess with you, i hope you didn't get offended. If you are than still i can't do anything about you. Enjoy

Credit cards and loans have similarities such as they are both incur debt, but they are technically different. You can't interchangeably call a credit card a loan, and the source I provided you explained that difference.


Loan uses fixed amount of funds (which incur debt) for credit that is debt as you go or generally rolling and unlike a loan you don't have to use your credit card.


Also with a credit card once you pay back your balance you balance is restored back to your credit maximum, with a loan money is designated one time use and if you want more you have to reapply for additional loan amount.

I think ignorant people confuse the two credit cards and loans have similarities but they are technical two different things and you cannot interchangeably use credit cards with loans and vice versa. Simply education in finance and banking would tell you that.

 

[A1Kaid]

He probably hasn't heard the the term "Credit card loans" in his country... or may be the rules in USA are different to Europe. Here in UK, the rules are very much similar to Pakistan. If you are over 18 you are eligible to apply for credit cards but that does not mean you will get one as soon as you reach the age of 18. You have to show your employment background, financial background, residential address and enough evidences to convince the bank that you will be able to pay back on time. If you have not taken any credit before you will most likely be rejected and bound to choose credit cards with poor history (high interest rates of 30-40%) with small credit limit. You have to build your credit history before you could apply for better credit cards and this procedure usually takes 2-5 years with little exceptions for some people. In Europe if you are seeking good credit cards you must have

1) Emloyment status (working for more than an year in the same job is preferred)
2) Bank account with history of transactions (direct debits) and no payment late/missed payments or defaults on your account.
3) Registered in voting list (very important)
4) Stable home address(es) and did not change for too many times

How does that contradict anything I said? Both Visa and MasterCard are American credit companies, US invented the modern banking industry.

My question was which your friend failed to answer, was what would the average credit limit be if a University student in Pakistan were to receive if the student is approved for a high interest starter card. All I asked was for the credit limit. Apparently your friend thinks University students who are 18 or older are "kids" when technically they are adults and credit card companies only give credit to people 18 or older in US and elsewhere.

 

[VCheng]

.......... was what would the average credit limit be if a University student in Pakistan were to receive if the student is approved for a high interest starter card. All I asked was for the credit limit. ...............

Secured or unsecured credit limit?

 

[Sugarcane]

Credit cards and loans have similarities such as they are both incur debt, but they are technically different. You can't interchangeably call a credit card a loan, and the source I provided you explained that difference.


Loan uses fixed amount of funds (which incur debt) for credit that is debt as you go or generally rolling and unlike a loan you don't have to use your credit card.


Also with a credit card once you pay back your balance you balance is restored back to your credit maximum, with a loan money is designated one time use and if you want more you have to reapply for additional loan amount.

I think ignorant people confuse the two credit cards and loans have similarities but they are technical two different things and you cannot interchangeably use credit cards with loans and vice versa. Simply education in finance and banking would tell you that.

How does that contradict anything I said? Both Visa and MasterCard are American credit companies, US invented the modern banking industry.

My question was which your friend failed to answer, was what would the average credit limit be if a University student in Pakistan were to receive if the student is approved for a high interest starter card. All I asked was for the credit limit. Apparently your friend thinks University students who are 18 or older are "kids" when technically they are adults and credit card companies only give credit to people 18 or older in US and elsewhere.

Ok dude - I surrender, university students of 18 or over are not kids.

And thanks for clearing my concepts i always thought that the credit cards and loans are different forms of debts and are same because both are debts, I think i really need simple education.

 

[Hyde]

Secured or unsecured credit limit?

He is talking about credit card offers available "for starters" not the personal loans

 

[VCheng]

He is talking about credit card offers available "for starters" not the personal loans

Yes, but even for starter credit cards, limits can be secured or unsecured. Which one?

 

[Sugarcane]

He is talking about credit cards "for starters" not the personal loans

you can get credit card with secured credit limit as well, every banking product of debt i.e. loan, revolving accounts (Credit Cards, Running finance etc) can be based on secure or unsecured debt. Secured debts carries low risk or can be risk free as well - so interest rate is very low, on other hand unsecured debts carries higher interest based on risk, time and inflation factor. However most CC are unsecured debts.

 

[Hyde]

Yes, but even for starter credit cards, limits can be secured or unsecured. Which one?

you can get credit card with secured credit limit as well, every banking product of debt i.e. loan, revolving accounts (Credit Cards, Running finance etc) can be based on secure or unsecured debt. Secured debts carries low risk or can be risk free as well - so interest rate is very low, on other hand unsecured debts carries higher interest based on risk, time and inflation factor. However most CC are unsecured debts.

Well I do know the difference between Secured and unsecured loans but did not know you can apply for secured credit cards. Never heard about such credit cards in my life.

All I know is,

1) Unsecured Credit cards
2) Unsecured loans where you do not have to secure anything against your assets
3) Secure loans where you have to declare your assets and the bank can reprocess them if you miss series of payments and ignore the letters issued by the bank

 

[Sugarcane]

Well I do know the difference between Secured and unsecured loans but did not know you can apply for secured credit cards. Never heard about such credit cards in my life.

All I know is,

1) Unsecured Credit cards
2) Unsecured loans where you do not have to secure anything against your assets
3) Secure loans where you have to declare your assets and the bank can reprocess them if you miss series of payments and ignore the letters issued by the bank

If you don't have any credit history and new in job/business even then you can apply for credit card, but that will be secured credit card. You have to deposit funds with bank and credit limit is normally set by the amount you deposit. Bank keep holding this money, you can develop your credit history and apply for ordinary credit card.

 

[A1Kaid]

Secured or unsecured credit limit?

Unsecured credit limit.

What do you think the credit limit would be for someone of that profile? As you may know in US a student may start out at $300-$500 on their first card.