Getting a credit card is a rite of passage for many young adult professionals seeking financial independence. At the same time, having this gleaming rectangular card comes with a great deal of responsibility. Despite the fact that credit cards have become an important financial tool and a common mode of payment, people who misuse them might find themselves in serious financial difficulties. So, if you’re on the fence about having one, here are a few things you should know about credit cards in Pakistan before making your decision.
Pros and Cons of using credit cards
One of the biggest advantages of using a credit card in Pakistan is that you may get around without having to carry your wallet. Not to mention, using a credit card expands your purchasing options by allowing you to purchase goods and services both online and over the phone. Customers can earn reward points with some credit cards for every transaction, which can then be redeemed later. Credit cards in Pakistan provide convenience and access to online shopping, as well as the ability to pay for products in installments rather than all at once.
Users of credit cards in Pakistan (and elsewhere in the globe) risk accruing debt if their spending patterns do not correspond to their monthly income. Because credit card users do not have to hand over cash, they may be tempted to buy more than they can afford. Furthermore, credit card bills suck up a significant portion of your monthly income before you even receive it. Another danger of using credit cards is the chance of fraud or misuse. Interest rates and late fees can be costly, and deciphering the fine print can be difficult.
Read: Some Popular Schemes to get a loan in Pakistan
Apply for credit card in Pakistan
In Pakistan, getting a credit card is rather simple.
Customers in Pakistan can choose from a variety of credit cards offered by their banks. Credit limits, reward points, discounts, annual fees, and interest rates are among the features that differentiate these credit cards.
To begin, you must first open an account with the bank of your choice. In general, banks in Pakistan that offer credit cards demand the following documents:
Original CNIC or NICOP (for Pakistanis living abroad) and a certified copy
Proof of earnings (the latest salary slip etc.)
A copy of a recent utility bill is required.
Form-B or a copy of your birth certificate (for minors)
The guardian’s student ID card and proof of income (for students)
Customers must additionally complete an additional form that specifies the credit limit, primary charge, rate of interest, minimum payment, and other important terms and conditions in addition to the account opening form.
To assist first-time credit card customers, almost all banks include a handbook with the card.
