Payment gateways play a significant role in the eCommerce industry in Pakistan. Businesses often face the problem of finding the best payment gateway for their stores when they have to sell their products or services online.

We are here to help you shortlist a potential payment partner by giving you a list of the best payment gateway in Pakistan.

Payment Gateways

Before we list the payment gateways, it is necessary to know what an online payment gateway is and how it works. Simply put, a payment gateway is a system through which payments (usually online) are managed and their details transferred to the concerned banks.

Usually, when you buy things online, you give in your credit or debit card details on a special payment portal that opens after you opt to pay. This secured portal is the front face of the payment gateway. A payment gateway works as a liaison between a buyer, seller, and the seller’s bank.

As technology has expanded, so have security concerns about financial data security. With online commerce growing in popularity, no one wants to have their financial data at risk. This has increased the focus on having an effective payment processing system that secures both the buyer and seller from financial crime.

The primary purpose of payment gateways is to ensure security and facilitate smooth and low cost digital transactions. With the growth of eCommerce, the demand for accessible, safe, and secure transaction processing is a growing focal point for Pakistani consumers and entrepreneurs. E-commerce stores, online retailers, online booking, and reservations providers for travel sites are all examples of businesses that need to accept online payments from their clients.

Payment Gateways managed by Banks in Pakistan

Since payment gateways are the digital versions of banking services, several banks provide online payment processing services. Since payment gateways can be taken as the digitization of a bank’s key business, it makes sense for banks to specialize in this segment.

At present, three banks are offering online payment gateway services. These are HBL, MCB and UBL.

Sadia Zaheer

Sadia Zaheer holds a Masters in Business Administration from IBA, Karachi. After working in several financial institutions in Client Management, Corporate Lending, Islamic Banking and Product Management she jumped careers to pursue a career in writing.
She is a Finance, Business and HR Development writer with four years of experience. She reads a lot and takes care of her multiple cats to remain calm.

The post The best payment gateways for e-commerce businesses in Pakistan appeared first on Smartchoice.pk.

To make this complex and intricate journey simpler and easier these are certain steps one must take to ensure a smooth transition from Academia to Employment:

Internships

Internships help a person to get an insight in the work-world before sub-merging full fledge in the world of businesses, it facilitates you in acquiring practical application of knowledge and hands-on experience in a professional environment as they help you get the feel of what you are getting into, think of it like these internships are a way to test drive possible jobs and explore different career options As an intern you learn to manage TIME as very important attribute when working in a fast paced professional environment you need to know every minute counts as it is vital in every circumstance whether you’re attending meetings, finishing tasks on deadlines.
Internships often give you the opportunity to create your networks, attend meetings and events. By interacting with professionals you gain new connections and learn how to communicate in a professional environment.
Internships are key to building experience that’s builds a strong resume as a student or recent graduate employers are much more likely to hire someone with internships and work experience rather than someone with a generic resume, lacking experience.

Discover What ‘Soft Skills’ Need Work

According to a survey, more than half of accounting and finance professionals polled felt only somewhat prepared for their first job after college, with 14 percent saying they did not feel ready at all.
The difference is between the knowledge taught in books is somewhat different from the practical job experience so, when we enter workforce we often feel the need to upgrade our skill and knowledge base according to that.
Hard skills are taught; soft skills are personality-driven and honed through experience. Nonetheless, potential employers value soft skills, such as relationship building, teamwork, industriousness, flexibility, attentive listening, and an ability to learn.
Which of these skills do you bring to the table? That is a million Dollar question, while you can’t attend a certificate course on soft skills, you can improve in all these areas through focus and practice.

Cultivate Patience

Cultivating patience will help you avoid burnout and stay positive, while also being a compassionate and supportive teammate and employee in the organization.
Everybody is going to experience having a bad boss day. The day when your boss may yell at you and tell you that you are doing everything wrong. Take what they are saying and pick out the important parts. Take the tasks they are asking you to do and ROCK THEM! But then take all the negativity and throw it out the window because you don’t need it.

Be Coachable and A Team Player

It is vital for a candidate to come across as independent, In addition to this, out-of-the-box thinking and innovative ideas can get you the competitive corporate advantage.
A lot of the so-called grunt work is key to understanding your new job. Respectfully ask for help when you need it, and brainstorm your improvement ideas with peers and bosses.
The word ‘team’ has very different connotations in school and in the workplace.
In school, every member of your team probably has a similar level of knowledge and experience when it comes to executing a group project, thereby helping each other is a mutually beneficial arrangement. This level playing field actually makes it easier to work as a team since everybody, more or less, acknowledges each other on an equal basis.
In contrast, as a fresh graduate, your working team in the office will consist of co-workers who outrank you and have more experience than you. As the fresh graduate, you’ll have to prove your mettle and defer to their authority in order to gain their respect. This is part and parcel of becoming a good team player who is able to work well with his or her teammates.

Earn, Spend and Save

Just because you are getting paid does not mean you need to spend it all we all know and remember the times when our grandparents would hand Rs.100 for birthday and say “Don’t spend it all in one place”
This means that the first job will probably not be your last and odds are, you will have a time when you lose a paycheck or two. Having something in saving can be a lifesaver. Additionally, make sure that you are setting aside a certain amount by investing somewhere little by little or just by putting money in your piggy bank at home.
One of the ways you can spend smart and save is by using a Credit Card, as many Banks are providing some amazing discounts and cash back opportunities on a credit card that help you save money while you shop and spend on your utilities this is one of the major ways one person spend smart and be on budget while going grocery shopping, eating out  or anything else on your list!!

Do Your Research

It is advisable to a fresh graduate when stepping up to enter professional career learn more about the scope, expectations, and challenges of your target job and industry by browsing the internet and connecting with professionals in similar positions in that industry.
Find out the minimum and preferred requirements for your target job by studying similar job descriptions and create an achievement-based resume that shows how your work history, skills and knowledge fit the job.

Be prepared to be a little depressed

After studying the degree of choice, the graduates are full of hope and energy that once done with this, they have a perfect illusion that the instant they leave Universities, they shall be able to bag the job of our dreams.
Fresh out of Universities Graduates have high morale, enthusiasm, and determination, they are bursting with anticipation and positivity that all good things would come their way, how every employer would want to have them as their employ, but often the reality is 180 degrees opposite to what they expect their careers opportunities to be or the job role they want themselves want to be in, so it’s a Million Dollar advice to be prepared to be rejected from your dream employers, you may not be offered work role you see yourself to be working in, when you start you don’t exactly land your dream job immediately, so all is not going to be green, but with experience and time you can pick and choose the job you want to do till then keep your confidence high and always be aligned with Goal you want to achieve.

All these tips and advice will make the transition easier, if not guaranteed to solve all the issues when entering the Job Market.

Khurram Zahid

The post 7 Tips for Transitioning into the Workforce after University in Pakistan appeared first on Smartchoice.pk.

You are in the mall to buy some important stuff, and suddenly you see something and cannot refrain yourself from buying it. Ignoring your budget and needs, you buy that specific item and are now thrilled to get back to home and try it? This is what makes you an impulsive buyer.

What is impulse buying?

As said by experts, impulse buying is purchasing any product that you may not need it, or pocket cannot afford it. This product can be candy or a shirt or handbag for sale. It can also be gadgets that amuse you, and you do not need or is out of your budget, but you buy it on impulse, just because you liked it so much.

As there are several types of impulse purchases, all of these are centered on the exposure of customer to stimuli in the shopping areas. There are times when a specific personal experience emotional changes as stress or happiness that is triggered by marketing materials displayed in the markets to pay for any product or service that caters to their specific emotional situations. An impulsive buyer does not consider the near future consequences of the buying. This unplanned decision of making a purchase is known as impulse buying, and the person who tends to make such an arrangement is referred to impulse buying.

If you are impulse buyers, here are few tips to help you control the issue and stick to your financial plans properly;

1. Create monthly purchase list and stick to it:

Living life with well-defined rules and limitations help you keep situations in hand and make you well prepared to deal with an uncertain situation in your life. Just like another thing in your life, be prepared to manage your finance and stay within your budget. Something that you will need the most to stick to your budget is “self-control.” You will have to enforce yourself that you can’t buy anything if you are not in need of it.

You must make a list of things that you will need over the month. Make sure this list contains the necessities. To make a budget, you must stick to your needs like toiletries, grocery, fuel, utility bills, etc. make sure that you are not spending more than that,make yourself stick to budget religiously.

2. Avoid going to shopping areas if you do not need to buy anything:

The impulse to buy is boosted when you are in the shopping area or if you are visiting an online store. So the best thing to prevent the urge of purchasing something is by not going to a shopping place at all. Do not go to Hyper Stores or any other shopping area if not needed. For your small needs, try to visit the departmental store in your area and always go with a to-do list. No matter what, do not buy anything that is not mentioned in the list.

Once you are done with buying what you need, get out of the store as soon as possible. The idea of window shopping or roaming around for entertainment can end up disturbing your budget and taking home much stuff that you do not need at all. Better would be to find other ways to have fun. The equation implies various types of online stores as well. Even on your social media profiles like Facebook where you might have liked pages that offer different stuff that may amuse you. Visiting such pages can be a bad idea if your earning does not support extra expenditure stick to your budget.

3. Limit your credit card use (try to pay most with cash)

A credit card is undoubtedly a good thing to have, but only if you are wise enough to use it with responsibility. If you find it tough to use the credit card, a better option would be to quit using it. If permanent cut-off from credit card is not a good option for you, you may think of freezing it. Alternatively, do not carry your credit card with you while you are out for shopping. Keep it away from your reach and do not write credit card number anywhere. In such case, if ever you wished to use your credit card, you have to unfreeze it or get back to your home and take it out of your drawer before you make a purchase. For all of this, you will have to wait, and this wait may lead to stopping you from buying anything all of a sudden.

4. Avoid the buying temptation

There is a big difference between needs and temptations. Never consider shopping as a mean of time pass or a hobby. Surrounding yourself with the lure of things will drag you to the urge of buying things that you do not need. Instead, try to find some other activities that can amuse you and keep you engaged and entertained for long. As I like to read books traveling at the same time but considering my budget, I prefer to stick to learning more and more books rather than planning trips around.

5. The Difference Between the need to buy and Nice to Buy:

Both are two entirely different things. Please make it a habit of monitoring your needs. Keep a small note paper or book with you all the time. Whenever you have an urge to buy something, tally with the notes to ensure if you need what you wish to purchase or not. This practice will soon make you care about the urges which most of the time are something that we don’t even notice. Having a clear goal in your mind is helpful in the matter. It may also involve the fact that what you need to do in your life? What are your financial goals and what is required to accomplish those goals? It is also essential to keep your goals for saving in your mind while making any purchase or having an urge to buy anything.

Khurram Zahid

The post How to Avoid Impulse Buying and Save at Hyperstores? appeared first on Smartchoice.pk.

However, in Pakistan, the concept of credit card is still in its early stages. People are accepting the concept and the facilities offered by the product and are thus getting themselves credit cards that suit their budgets and needs. From a job holder to a freelancer in Pakistan, all are now looking forward to having a credit card to help them in their hard financial times. However, the Pakistani community is still with limited knowledge on using a credit card. This is the reason why we have compiled a set of most needed information that is required to be kept handy, if you are a  first time credit card user, you will need to keep these points in your mind to ensure a secure use of the facility offered and not to fall in the black hole of debts.

Being a credit card user, below are the points that you may wish to have known in the first place, to use the credit card in a better way.

Understanding How a Credit Card Works:

First comes the understating about how this financial product works. In simple words, when you buy something with your credit card, you actually pay for it later. It is unlikely a debit card that immediately deducts money from your bank account. While buying with a credit card you actually owe to the bank rather than owing the store. The banks are the one that offers loans to the users for immediate use of the facility to pay them off later.

Thus the credit card will work for you in case you need to change your car tires now, but you are out of cash. With the help of a credit card, you can get things done when you need and pay for them later when you will have money in your pocket/account.

However, it is dangerous if you start buying more than what you can actually pay off.  Because no credit card will offer you the loan for more than one month which means that you will have to pay off the amount that you have lent from bank on monthly basis. If you are unable to do so, you will have to pay an additional amount in terms of interest or fee, apart from the actual amount that you have lent from bank.

Why You Must Have a Credit Card?

If you are good enough to stick to your budget and are able to secure a considerable amount in the name of savings, you may not need a credit card at all.

However, one good reason for having a credit card is that you need to build up a strong credit of financial profile. Although the credit score is not the only contributing factor to your financial profile, it does count much.

If you are looking forward to taking some bigger benefits or help from any financial service providing company in coming future, having a credit card with wisely used services can be of great help. You can use the credit card to make payments and then pay them off responsibly, and things will work magic for you. A good score will have an impact on the chances of getting a loan for your home or apply and get an auto loan successfully.

On the other hand credit card also offers a better level of security as compared to cash or debit card. For instance, if you lose your wallet, you can cancel the credit card easily and can dispute any charges that you didn’t make. But if you lost your cash, it is probably gone forever.

Expert Tips on Using Credit Card:

Here are some of the expert suggested tips to keep in mind while you are opting to use your first credit card wisely.

• The credit card issuing bank is lending you money for a specific time period and after that, you will have pay additional amount as an interest on the actual amount to be paid.
• Never tend to have more than one credit card at one time.  
• Based on how you are intended to use, try to keep the credit card limit as low as possible.
• When buy anything using your credit card, make sure to pay off the balance within a month. It will keep you safe from paying service charges and will also help you build a good credit record.
• Prefer to use a credit card only for emergencies focus on using a debit card, cheques and cash for making most of your payments.
• Never ever give your credit card to anyone else. Because the end, it is you who is responsible to pay off all the charges.
• Keep a proper track of where you used your credit card and how much amount you paid using it.
• Even if you are using the card for emergencies, make sure that it is in an active condition. You can do that by making small purchases in every 2 to 3 months. However, make sure you are paying off the balance before the due date
• Do not let your credit card spending cross 20% of your net income per month. Create a budget and stick to the plan.
• If you think or find that you are not able to handle your credit card wisely, it is better to get rid of it.

Using a credit card is a skill anyone can have, However, self-control is the key to use from a credit card. If you are able to keep a control on your spendings, you can use the credit card and can earn benefits.

Khurram Zahid

The post A Quick Guide for First Time Credit Card Users in Pakistan appeared first on Smartchoice.pk.

Credit cards are not only an additional source of income in hard times but they also help you to build a strong financial profile, in case you may need some financial support for your business startup in future.

By not having a credit card, you can never own an appreciated credit card score on his/her name (the score is generally offered by the credit card authorities). But there are many reasons for suggesting not to use a credit card. Where there is almost an equal amount of people rejecting and appreciating the use of credit card, there is also a considerable amount of people who believe that it’s not the credit card, that is good or bad, it is the use of these facilities and about how we take the chances and utilize them in our daily life.

This article is written with an aim to review the two sides of the mirror and find what makes some people believe in the worse of having a credit card while others just focus on the goods of it.

The Pros of Credit Card:

If used properly, a credit card can bring the cardholders with a number of benefits. Some of these advantages are as follow:

• They are a great help in case of emergency
• They can help and appreciated in holding reservations
• As compare to other tools like debit cards etc. credit cards offer additional protection against any kind of fraud especially while doing online shopping
• If you choose the card wisely, you can get bonuses, flyer miles, cash rebates and others
• If used carefully, the credit card can earn you a positive credit history that can, later on, help you in a number of ways

The Cons of Credit Card:

If you are not using your credit card wisely, you will surely face a number of issues and financial imbalance. Some of the most devastating impacts of credit card can be as follow;

• An irresponsible use of credit card with earn you a negative credit history
• Negative credit history will earn your negative credit scores that will be a hurdle in a number of issues in future
• You will face a number of issues while applying for loans, or leasing a car etc.
• You may go overboard while using a credit card and most of such cases have been found in females as they tend to be an impulsive buyer. This means that they own a credit card and they out for shopping they generally end-up buying stuff that is out of their budget, or not in their need.

Credit cards are not a bad thing, until and unless they are handled by a person with wrong intentions or who is bad in dealing with his finances. If you own a credit card, important is to use it responsibly. If you do this job right, you will open up a door of amazing opportunities to you.

Related Read: Want your First Credit Card? These Requirements from Banks you Need to Know

The most important thing to do while dealing with a credit card is to pay your credit in time. If you fail in doing so you are likely to end up facing difficulties to get your loans approved, lease a car and get a business loan. If you are not paying your credit in time, you may face serious issues like becoming a defaulter of the bank. We won’t suggest you to not to use your credit card to pay your bills, but pay them wisely and do not become over debt.

There are a number of good and bad aspects of using and paying your bills with a credit card. If you are not sure about is the credit card is good or bad, look at the following aspects and decide on your own.

Superlative Aspects:

Immediate fulfillment: let’s say that you are willing to buy a mobile of the latest model which is about PKR 50,000, but you do not have that much cash in your pocket at the moment. Rather than taking months to save that much amount or asking your friends and family for a loan, you can use your credit card, pay the bill take your new mobile and leave. All that you have to do is to pay the bill at the time of few months. This way, the credit card becomes the most efficient and cost-effective way to pay your bills in tough times or when you lack money.

Convenience and Safety: Going for shopping of an expensive item with cash in your pocket is really very risky. You may get robbed by the corner of the street, but no one can harm your hard earn money if it is lying in your bank account and in the form of a credit card in your pocket. Thus, going for a credit card will keep you secure.

Reward Programs: The best credit cards in Pakistan are offering its customers with the jaw-dropping reward programs. Such programs offer you points that can help you in cash, travel or good services, each time you make a purchase with your credit card. If you keep your credit card charging nicely, you will end up with no debt to you.

Dreadful Aspects:

Overspending: The open line of the credit card is the most dangerous yet attractive thing. While you are in the store looking for a TV and you come up with the laptop that you are inspired with, and you end up buying both of them is dangerous for your bank account. People are seen spending more than they can afford, by using their credit cards. This is really dangerous for you. Thus to use a credit card, the control on your spending habits is a must.

Related Read: Visa Or Master? Which Credit Card you Should Go for?

Fees and Interest Rates: Despite you have planned to pay back your credit card for the TV, in three months but you end changing your priorities. Rather than paying it in the decided installments you start focusing on requesting to pay a minimum amount per month and skip one or two cycles. In such cases, the interest will shoot up. And you will have no idea when the bargain turned into a high debt. The only way you keep things align is to pay the balance in full or in minimum time.

Long Impact of Mistakes: Despite it is bad to be the charge for PKR 5000 for delaying or missing a single payment but, breaking the rule will also bring you some long-lasting negative impacts on your credit report. This flaw in your credit report will stay with you for a really very long time and will keep pinching you in a number of ways. If you own a card, you need to keep your credit report as clean as possible.

Identity Theft: What will you do if your card gets stolen and someone shops the TV instead of you. Although you can register a complaint about the card theft and misuse and you will not have pay for the TV. But the thieves these days are very smart they have got their hands on skills to apply for a credit card in your name and rob your identity. Thus, it is important for you to know where your credit card is and who is using it and for which purpose.

By reviewing all these goods and bad we can come to only one conclusion that it’s not the credit card itself that makes it good or bad, it the person who owns and use it. If used properly you can come up with a number of benefits from the credit card. However, if you are not careful and concerned about your spending and buying attitudes, you are not looking after your numbers on the credit report, you will have to face some long-lasting negative impacts.

Related Read: Top 5 Reasons your Credit Card Application can get Rejected

Thus, before heading to check the credit card requirements, check your own habits of spending and alter them before taking a credit card in your hands.

Khurram Zahid

The post Is Having a Credit Card in Pakistan Good or Bad? appeared first on Smartchoice.pk.

If we speak about a simple, household, salaried person, we can have a better idea about hassle they have to take in managing their salary so that they can have a sufficient amount of money in their pocket at the end of the month hits them. Managing some savings is a great deal in such cases. In such situations, saving some money is a big deal.

An average Pakistani job holder is earning from PKR 30-50 thousand per month. This amount is obviously a handsome one for the intermediate level jobber in Pakistan. But the most common problem faced by this group of youngsters in their expenses. And most of them encounter it as they arrive at the second half of each month.

Here are some basic level tricks to keep your spending in your control and predefined budget.

Related Read: How to Manage your Expenses when you get Unemployed in Pakistan

Putting Your Budget in Place:

By budget, we mean to decide and allocate a fixed amount for your basic expenses. For a household person budget will include the average amount they need to spend on monthly grocery, electricity/telephone/internet/gas bills, fuel, fees and other expenses that are necessary to be paid on monthly basis. Apart from this, you must include a fixed amount for medical treatment into your budget.

Once you will enlist and calculate the amount you needed for these activities, you will be done with your budget. Once you will get your salary, take that calculated amount aside and make sure you are not spending it anywhere else.

Just waiting for the salary to get credited to make your saving for the month ahead is not enough. You need to make yourself a clear concise and strict, yet practical budget plan that need to stick beforehand.

You can consider the revision of your plan, every three months. There are chances your budget will change, you need to add new expenses, the fees for kids are increased or there are some additional medical expenses.

In budgeting, you also need to make sure that you are strict to the basic expenses and savings before you look for some party and outing activities. If you are left with some amount from budget or savings, you can think of other things like shopping or hanging out with friends.

Budgeting helps us to control the most common problem that we face overspending. Overspending is also found to be a major problem that keeps our bank numbers at their lowest by the end of each month.

Use Credit Card Wisely:

Simply keep them to a minimum. We believe that you are one of those youngsters who would like to keep a balance on their credit card. If it’s really so, prefer to shop for the card with the lowest interest rate as it will lower your credit card bills.

If you are a full-time job holder and are able to pay your bills by end of each month, financial experts would suggest going for a card that offers a reward program. Different banks offer different packages and facilities on their credit cards. Look for the credit card offer that suits you the best.

Well! In another case, if you fail to maintain this balance, be competent to avoid paying the interest while enjoying the perks. An expert tip for using a card perfectly is that “Never miss the due date of the payment.” If you are paying your credit card dues on time, let’s say by end of each month, you are going great!

Related Read: Which Terms You Need to Learn before Applying for a Credit Card?

One of the major issue that credit card users face is that they spend too much money by using their credit card. The credit card does not mean that you can shop anything you want to.  

Credit card just provides you the opportunity to pay your bills with a bit of delay. Let’s say by end of each month, or the moment you get your salary. Then how is it possible to pay your bills more than you earn???

Your credit cards help you to make some urgent payments at the time when you have less or no amount in your wallet. You can use a decided amount of money from your credit card and then return it back to the bank after some time. But make sure you are spending that much money which you can pay back to the bank once you will get your salary.

Have credit card to serve you as a helping friend, in the time of need. Having it for your leisure expenses will never be a good idea.

Spend Carefully on Yourself:

This might sound strange but you need to pay yourself for your salary. Managing your personal expenses is also a must if your salary is under PKR 50,000, from which you have to pay your expenses and fulfill needs of your family at the same time.

Setting aside some specific amount for your personal expenses on monthly basis will help you keep the bigger figure aligns and will allow you to make some saving as well.

You must think twice before spending the money on activities like hanging out and random shopping even when you are not much in need of the particular thing and you are buying it just because you liked it, or if you are about to start a new course and you need to pay funds for that.

Stick to your needs, rather than wishing to have everything what you look around you.

The Pro Tip!

Why not make some extra money from the amount you will save!

Focus on the saving plans that offer you the facility to divert your funds towards tax saving, insurance, and investments etc. Look for better and trustable insurance and investment opportunities to double your money with no effort.

Try to have an insurance for you with some basic ongoing investment. You can go for the insurance even if you have a huge amount of savings in your pocket. For the details, you can consult any financial analyst or even your bank might offer you some related opportunities.

Related Read: Smartchoice.pk Introduces New Features with Better User Experience

Keep a money bank saving for emergency purposes. This is always a great idea to cheat you into saving a bit more. At the time when insurance and investment plans are pre-planned financial tools, money banks can bring you some extra unplanned surprises with a very little amount of effort placed in it.

Maybe it looks childish but the idea works a miracle. If you are a salaried person and are worried to meet and manage your expenses, try these simple yet effective rules that will surely earn you some amazing benefits, but only if you apply them on regular basis for a year or so.

Khurram Zahid

The post Money Management Tips for People Income Under PKR 50,000 appeared first on Smartchoice.pk.

Nothing comes like a piece of cake; you need to put some efforts and attention to earn the benefits of anything. Likewise, you need to apply for the best credit card package and services that suit your earning capacity and expenses. A credit card is not just of one type. There are different types of credit cards with different packages. Every bank offers different kind of benefits or services to the credit card users at different stages.

To get a credit card for you, important is to learn what a credit card is? How it helps you? what must you know before applying for a credit card? The answer to all these questions will help you make a better decision for your expense management and thus, better future.

Related Read:  Top 5 Reasons your Credit Card Application can get Rejected

How to Choose a Credit Card

Among hundreds of credit cards, you must go for the one that suits you the best.
To choose the best credit card for you, first of all, you need to know that why you are looking to have a credit card? You can think of having a credit card for the following reasons:

• To buy stuff online or shop during holidays
• Pay your bills online
• To keep some backup amount for use at times when you run out of cash

No matter for what reasons you choose to use a credit card, the important thing is that if you will be paying off, the amount you owe each month or just spreading the repayment for a long period.

If you are able to pay the utilized amount, on the whole, each month, you will be able to earn advantage of the interest-free period. In such a case, the interest rate may not be that important for you but, you might have a look at the credit cards that come with random incentives. There are many cards that offer you discounted shopping on famous brands. Most appreciated and trusted credit cards also offer facilities to the customers on special occasions like Eid or new years to shop with discounted price.

Even if you are able to pay the full amount at one time, it is important to plan what you will do if you are not able to do so?

Related Read: Want your First Credit Card? These Requirements from Banks you Need to Know

What If You Will Not Pay Back the Amount Used?

If so, you will end up paying the interest on the amount spent. Every bank has different interest ratio on different cards and with different packages. The exact amount of interest depends on what package or card you are selecting.

Thus to take complete benefit of a credit card it is important to spend wisely. Do not go for a random shopping just because you have amount limit on your credit card. Do not forget to be sure that you are able to pay the used amount, tomorrow or the day after.

Following are some key terms you need to get hold of before applying for a Credit Card:

The Annual Percentage Rates

The cost of borrowing on your credit card, if you are not able to pay the used balance each month. Compare the percentage rate with different cards you are considering or are offered to you. Go for the one with the cheapest percentage. Also compare the points like charges, incentives and fees.

Minimal Repayment

When you are not able to pay off the used balance every month, the credit card supplying authorities will ask you to pay the minimum amount. Most commonly it is about 3% of the net amount that you need to pay. However, it can vary. So check and compare before making a final decision.

Annual Charges

It is also important as there are some credit cards that charge annual fees for using their services. This fee is added to the amount you need to pay back to the card. Important to note is that you will have to pay an interest on the fee as well. But if you are paying it fully, you won’t need to pay any interest.

Charges of the Credit Card

For this you need read the credit agreement in detail and check what are the other charges that you will have to pay? Usually, you will have to pay if you have gone above your credit limit, if you used the card abroad or if you made a late payment.

The Introductory Interest Rates

This is the point where you will pay low interest or not at all. After a certain time limit, this rate will increase. For example, it will increase after 6 months or a year staring form a certain date. If you are comparing different credit cards, check which introductory date rate will last the longest. Also, check the change in interest rate at the end of the introductory period.

The Rewards of Loyalty Points

These points end up depending on the amount you spend and then use them to buy things. This can be a particular shop or brand. Check how these rewards can be used and how they can give you benefits.

Getting the Cash Back

As you are paying some amount to use the facilities of a credit card, so it is your right to know how and when you will get money refunded to your card, depending on the amount you spend. For instance, in some cases, it implies only when if you are paying your balance in full, every month. Prefer to go for a lower interest rate. Choose a card that is offering you the lowest interest rate among all the shortlisted credit cards.

You Can Apply for Credit Card

• By online form filling at bank website of the service provider (available in some cases)
• By post
• By call
• By visiting the bank building/branch
• Or simply apply through Smartchoice.pk

Apply for Bank Alfalah Credit Card

You will fill the form and the service provider will check the record you have provided and will check if you are eligible to own the credit card or not. The services provider will check your bank records that are commonly known as the previous bank statement.

Your bank statement will tell the financial analyst if you are a good earner or how you spend your money, how much money do you normally borrow etc. it will also tell if you are good payers and follow laws and regulations or not.

Read the application form carefully before filling it and up and before signing it. Make sure that you are presenting all the information right. Any false information or misleading will lead to rejection of credit card services. If you are not sure how to fill the form you can ask the credit card service provider, or the bank representative to fill the form for you.

Khurram Zahid

The post Which Terms You Need to Learn before Applying for a Credit Card? appeared first on Smartchoice.pk.

Credit cards are still in the process to gain some momentum. If, you are thinking to apply credit card from 12 major banks in Pakistan. Then don’t forget to keep in mind some of the major factors that will lead to rejection of credit card application.

Related: Want your First Credit Card? These Requirements from Banks you Need to Know

Here, we will discuss top five reasons that predominantly lead to non-acceptance:

1. Your credit history isn’t so impressive!

When banks issue credit card, they look into your credit history. Your debit- to credit ratio needs to be healthy. Most of the banks in Pakistan will refuse the application due to delayed payments. Keep this ratio low so the issuing bank is comfortable lending you money.

Normally, banks look into your ECIB report. Electronic Credit Information Bureau is central database created by state bank of Pakistan. This report provides the information about the individual’s history of lending offered by banks. That’s not it; this tool also gives complete information about your payment schedule and burden on your income with respect to your monthly installments.

Banks rarely give you credit when you need the most. Keep your report clean by filing your income tax, timely payment of loan installment and finally, paying credit card bills within the grace period. Take advantage of good credit lines when you are flying with best credit scores!

2. Expenses more than your monthly income

The Income statement is a reflection of your financial progress. Banks don’t do business with you infect they invest in your income statement. If your expenses are more than income then banks will barely look into your application. According to Forbes, your credit score is not enough to win you a bank card.

Your income is the key for approval. It’s quite obvious, “who will sit in a sinking boat”?
According to Socio-Economic Status of Pakistan, 15% and 25% Pakistanis falls in the category of rich and upper middle class.

Source

The picture explains, why credit card is still not a popular payment instrument in Pakistan! Banks/DFI’s have market of 40 million of Pakistanis. Almost 130 million people don’t have enough resources to repay the loans.

State bank of Pakistan has issued clear instruction in this regard. There is a complete manual regarding operational guidelines for credit card business in Pakistan. In this guideline, chapter 2.5 instruct the Banks/DFI’s to properly assess the credit history before issuing credit card to any applicant. Normally, the risk department or compliance department is responsible for customer financial evaluation.

Related: 5 Top Banks Offering Credit Cards in Pakistan

3. False credentials

Don’t try to mislead your bank it may cause legal consequences to you. Especially in the situation when your business is going down and you wind up with debts you can’t pay. Misleading information results in two possible ways. First, the customer deliberately tries to overstretch its income statement to get hold of a credit card. Secondly, the illiteracy rate in Pakistan is drastically low. Consequently, people are not aware how to give accurate information to the banks.

According to Pakistan bank association, Credit card Pakistan has recorded the highest default rate since its arrival. It is considered as the most unsecure mode of financing because of no security from the borrower. Still, People consider it as a luxury facility and hold two to three credit cards at the same time.

KYC (know your customer) policy helps the banks/DFI’s to verify customer income, phone, postal address and other relevant details. Try to give accurate and updated information to the banks. Once, you will be caught red- handed then it will be difficult to get out of the bank “clutches”.

4. Too many credit lines

Have you availed too many credit lines in a recent time? This practice will affect your credit profile. Too many hard inquires will categorize you as a riskier borrower. Further, it will clearly indicate that you need loan due to financial setbacks. Analyst suggests that, if you are an active credit card user then focus on building credit history with one or two cards. Keep your debit-to-credit ratio below 30%. None the less, it is a wise decision to avail credit with low interest rate but keep it for short period of time.

Banks/DFI’s can sanction limit up to Rs 5,000,000 to their prime customers on the basis of their track record, credit worthiness and financial position. Try to focus on your sending habits rather than focusing on the credit limits.

5. You are too young to apply credit card

You can apply for credit card if you have crossed the 18 year age limit. It also simply means that you should have National identity card issued by NADRA. Furthermore, bank may approve your application as a minor but Pakistani law doesn’t allow taking legal action against a minor. But, banks will not take this risk in case you get default.

However, you can get the card under the age of 18. In that case, you parents will require to co-sign the application. There is a risk involved in that case too, any negative activity will appear on both primary and authorized users.

Related: How to Enjoy your Credit Card without Going into Debt

Final words

Both, commercial and Islamic banks haven’t shown interest in consumer financing in last decade or so. The primary reason is the borrower guarantee. The same factor has affected the credit card business. Credit card in Pakistan has limited market. Banks prefer to target a specific segment of Pakistanis.

Lenders, regulatory authorize and more importantly customers need to be more responsible and rational. As Charlie Munger said,

“Don’t let your credit card debt take over; you can’t get ahead paying the eighteen percent”

Khurram Zahid

The post Top 5 Reasons your Credit Card Application can get Rejected appeared first on Smartchoice.pk.

Everybody now needs a credit card.

You will be amazed to know that to apply for a credit card these days is as simple as participating in one of those online surveys; entering your information and hitting “submit.” But getting approved is another business entirely. One that requires careful planning that should start long before you apply.

Are you trying to make your first credit card? Well, you have come to the right place. In this credit card 101, you will find out how you can go about having one made for yourself, and what your bank might require from you.

Also read: Most Rewarding Platinum Credit Card in Pakistan

First and foremost, here is what you must know:

1. Reduce your debt

Most of the time, people with bank loan history are denied credit cards. Make sure you have none before you proceed to apply for a credit card.

You are supposed to ensure that you have no debts before you apply. If you do, try to pay off your debts prior to the application process.

2. Don’t apply for the first offer you see

Falling for the first offer you find yourself or through some other source has its disadvantages. It does people good to compare between offers and the banks offering them.

In Pakistan, however, you can apply only where you have an active account. Even with this, there are more than one offers. We recommend talking this out with the bank people.

Let them help you out. They will know what is best suited to your needs.

3. Include all of your income in the application

Your income, and all of it, is an important aspect of this entire process. Credit card issuers will want to know your income level to compute your debt-to-income ratio, which in turn will aid them to determine your capability to pay.

If you have more than one employer, more than once source of earning money, like earning apart from your full-time job or the like, be sure to include all of it on your application so as to avoid future confusion.

Another thing of note, upon providing incorrect information, whether intentional or not, about your income might lead to credit card fraud. The only way out of this mess is to pay your way out.

Also read: 5 Tips To Save Money Using Your Credit Card!

Secondly, what you must present:

1. Identity Documents

Usually, they’ll want a CNIC with your photo, or your passport. Make sure that you present valid originals of these documents.

They should not be tattered or crumpled.  

2. Proof of Income

Your credit card issuer would need some proof income. This includes a salary slip, a letter from your employer, and your bank statement can testify to this. Anything that holds validity and proves that you have a constant, trustworthy source of income to pay off your credit card loans.

The documents being presented should be in their original form and not crumpled or folded.

3. Proof of debt if applying for balance transfer

This varies with your case. If you qualify for this one, make sure—again—that the credit card statement you provide is recent and not old, the document being neat and creaseless.

Also read:  6 Common Type of Credit Card Frauds and How to Avoid Them

4. Decide on a type

A credit card is categorized into Silver, Gold, Platinum categories. The names may differ from bank to bank. But their purpose is similar. Credit You need to choose your credit card based on your salary. If your amount doesn’t coincide with the policies of your chosen card and the minimum salary requirement, then your application will be rejected.

Make sure you choose your card appropriately with your salary.

5. Cards with higher credit limit

As per the rules and policies applied and abided by here in Pakistan, the limit your credit card can have can be three times that of your salary. For instance, if you earn 50 thousand rupees a month, then your limit can be three times of that amount, that is 150 thousand rupees. This is offered by the Gold Card.

The Silver Card offers a limit that is two times of your original salary.

9. Multiple cards and what you need to know

If you apply for more than one card with a number of banks, this reduces your chances of approval. This is usually restricted to cards with higher limits.

However, if you wish, you can apply for multiple cards with less limits to have a higher cumulative limit. Caution is advised in this case. One must know the total lending limit of each card to avoid trouble.

Information you need to put in your application form.

This depends upon your credit card issuer. But almost all of the following information is asked of you. Generally

• Full name
• Date of birth
• Residential address and status—status being either citizen, permanent resident, long-term visa, et cetera
• Contact details—this should include your email address, as well
• Number of dependents—dependents are your children
• Occupation
• Employer’s name and contact details
• Income per year—this shall include annual salary, bonuses or commissions, and secondary income et cetera
• Current balance of your savings and transactions accounts
• Current balance of other credit cards and other debts you already have
• Monthly expenses—this shall include rent, mortgage, groceries, fuel or public transport, utilities, insurance, and possibly more depending on your issuer
• Your preferred credit limit for the card—this one is usually optional
• Any other general information asked of you

Bottom Line and Conclusion. 

1. Being cautious

You need to be cautious when it comes to filling your application. One mistake, even if it is a minor one, can lead to your credit card application being denied. You need a clear head and possibly another person well-versed in finance or a relative having relevant experience with dealing with credit cards to help you fill your form.

2. Don’t give up

In case your application ends up being denied, there is room for consideration. This is practiced by a lot of credit card issuers. You can call them and talk it out. Plead your case and see how it goes.

Concluding, abide by the rules needed to get yourself approved the first time. Do not make haste, as this process will cost you time. Also, make sure to give accurate information during the application process so as to avoid denial.

If you go by the books, you will have your credit card assigned to you. There is always a second try if that doesn’t work out.

Khurram Zahid

The post Want your First Credit Card? These Requirements from Banks you Need to Know appeared first on Smartchoice.pk.

Also read: 5 Top Banks Offering Credit Cards in Pakistan

Visa Credit Card

Visa Cards are credit or debit cards provided by Visa Inc. Their popularity keeps growing day by day and it’s being used across about 200 countries. More than 2 billion ATMs across the globe are helping individuals and businesses transfer money. More than 2.5 billion Visa Cards have been issued by Visa Inc. till this day.

There are two tiers of services in Visa Card. At base level, Visa card offers benefits such as coverage of damage, and warrantees on the purchases done via these cards. Next level is the Visa signature, which offers some extra benefits in addition to the ones offered at the base level.

If you are into sports, you might want to go for Visa Signature, since it allows its cardholders access to sports facilities, such as golf clubs etc. And that’s not all; it’s easier to access the best hotels all across the countries where Visa Card is accepted when you have Visa signature. Visa Cards are commonly used in Pakistan as well – most banks issue those, as the use of ATMs has grown hugely over the last few years.

With Visa Signature, you can earn reward points and later used them during your travel for various benefits.

Visa Card also covers rental collision damage. If you’ve used your Visa Card to pay for the vehicle rent, the damage will be covered in case of collision or theft. A primary coverage of physical damage or theft is provided at international level – so you can be at peace while traveling if you have done the payments through your Visa Card. This only applies to the rental vehicles and not your personal belongings – to take care of your stuff while enjoying your trip.

If you ever lose your Visa Card, you can use Visa Card’s Zero Loss liability benefit, as you’ll be covered in case of any fraudulent transactions made through your credit card.

Also read: How to Enjoy your Credit Card without Going into Debt

MasterCard

A MasterCard is a credit or debit card provided by MasterCard network. It’s just another credit card with a different brand name – but it definitely has its own unique benefits. There are three tiers of benefits offered by MasterCard; base, World, and World Level Elite.

Price Protection in MasterCard

One unique benefit MasterCard provides at its base level is ‘price protection’, which isn’t something we can gain with Visa Card. For every purchase made with MasterCard, if the price of the item is reduced within 60 days, the cardholder can claim back the difference. Most banks in Pakistan provide MasterCard, so you’ll simply need to visit your bank to start enjoying the perks of MasterCard. Some banks provide internet fraud protection with MasterCard to help you secure your transactions.

In MasterCard World level, the benefits include extended price protection (120 days), access to lots of hotel luxuries, and personal travel advisor.

Also read:  6 Common Type of Credit Card Frauds and How to Avoid Them

Travelling with Visa and MasterCard – A comparison

If you love to travel, credit cards can be your best friends. Both Visa and MasterCard have their own attractive features when it comes to traveling. As mentioned earlier, Visa Signature provides you access to hotel benefits across the world, such as automatic upgrades and VIP treatment. Shopping at airports across is also more convenient with Visa signature as it helps you gain many privileges. If you go do with some extra support, Visa Signature Concierge is there for you with many amazing services from ticket-booking to ideas related to fashion and buying gifts.

Another very important benefit of Visa Signature during travel is its travel accident insurance service. If you pay your travel expenses through a Visa Card, your travel insurance will be covered.

MasterCard also has great travel benefits for its cardholders. We’ve already talked about some features of MasterCard World level, which include VIP access to luxury hotels. And what’s more, if you are paying your travel charges with a MasterCard World or MasterCard World Elite level, you get the best out of your trip by having access to VIP events, promotions, and special offers.

MasterCard also has a Concierge service like Visa Card. In World Elite, you’ll get a personal assistant to ease your many travel-related headaches, such as finding the perfect hotel room, or booking a decent table. If you’re visiting a totally new place and aren’t sure where to stay or where to buy the perfect gifts for your loved ones, the services of the personal assistant provided by MasterCard can save you a lot of trouble and frustration. It’s like having your own personal genie on your fingertips.

MasterCard World Elite’s perks also include reduced airfare and other money-saving benefits, like reduced prices on cruises, and discounts of car rental services. You also get many superb vacation packages as World Elite benefits, so if you’re passionate about travelling, World Elite might be just the thing you’re looking for to help you enjoy every moment of your trip.

Theft Protection with MasterCard

MasterCard provides its cardholders with protection against identity theft. The service is simple; call on the provided number and let the personal assistant know of your security concern. The assistant will further guide you on the further steps that need to be taken.

So, which one’s the best?

There is no ultimate right choice when it comes to choosing between Visa and MasterCard. Both have their own perks, and the right choice might vary from consumer to consumer. Go through all of the benefits offered by both networks and see which one fits your needs. Visiting your bank and talking to a professional might be the first right step you’ll take in this regard.

Khurram Zahid

The post Visa Or Master? Which Credit Card you Should Go for? appeared first on Smartchoice.pk.