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.

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.

To own a debt you need nothing much to do. Gather some documentation ask few friends eligible to give your guarantee and you are all done, ending up with tons of money in your bank account and enjoying a long time, spending the money you got in the loan.

But getting out of debt is a reverse process. If not used wisely, you might end up with a big problem of paying the amount back to the person or institution you asked for debt from. Here we will not focus on teaching you ways to get loans from banks rather; we have compiled some amazing ideas for you to get out of your debt, on your own.

There are a number of cases where people can be seen running lots of credit cards and used the amount that was a lot more than their actual salary. They can also be seen buying a number of stupid things and the things they didn’t even need including weekends in hill stations, brand new cars, flying lessons and much more.

Although, we can’t say that they didn’t have fun during all those ventures but, all those spendings were actually based on the dream of earning a 100K job just after graduation. But facts are always different than the dreams and we all know that things don’t work well and as per we dream, think or plan about them.

In the most general case, such people have a tough time in completing their studies and then finding an average paying job. The things didn’t end up the way they might be thought.  And soon they get caught with the debt and are left with no way out of the money problems anymore. Such people soon realize that they are barely making money to meet their monthly needs and the amount they owned was twice of what they were earning.

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

Understanding the numbers, such people are soon seen to be deciding to change their habits of using and borrowing money and every now and then. What help such people the most in this situation is their hardworking nature. If they are not afraid of working hard or spending some more hours each day. But they can only bring a change when they decide to do so.

Here is a simple guide to the sure-fire ways of getting out of debt this year 2018 and move towards a financially stable life ahead.

     Defy: Face the numbers of how much debt you own?

Although it might come as a nightmare to you, you have to face it and come with a clear number of how much debt do you own. Ignoring is never a solution or a way out of the problems in any way. Try to face the numbers as early as possible; ignoring it won’t save you from the problem.

In the past, I did pay the minimum of my debts and forgot about the rest afterward. This is not a healthy activity and I would not recommend it to anyone. If you are really looking to get things done, go for seeing a clear picture of the numbers, consider and calculate every single penny you own to anyone.

In Pakistan, we do not have any kind of university or student loans, but in a case, as that of mine, you might have to pay the car loans, credit card loans and others. Calculate all of them.

2.      Debt Versus Income Ratio:

   

The ratio between the two is the most commonly used figure that is meant to place your debt side by side to your income.  This ratio is calculated in a number of ways. If you apply for a loan for a car, the bank will calculate your DTI with a percentage of the monthly installment you will be paying to the bank, from your monthly income.

For example, if you are earning PKR 50,000 per year and you have PKR 25,000 in debt; your debt ratio will be 0.5. This number will give you a clear picture of where do you stand in your debt scale and how you have to move on with the process of paying it off. No matter how much debt do you have, you need to look at the ways in a positive manner to the things done.

3.      Change Your Behavior:

   

Getting out of any problem starts by kicking off the habits that dragged you into that situation. Thus you must start with eliminating the reasons that dragged you into the debt. Check yourself your habits and your activities that lead you to the current situation. Not even a lottery can help you if you don’t know how to spend less than what you have earned. People get in debt for a number of reasons. Medical bills, school fees, job loss, or if you are spending insanely, just like me. Whatever the reason is, analyze the facts and find the root causes and kick off those causes from your good book.

Here are some suggestions that you can keep in consideration! If you have already taken a loan for a car, do not ask for another to upgrade the latest model of car you own.  If you are piled up with debt because you lost your job, once you pay off all the debt, start working on saving some emergency funds to never let it happen again. If you have spent years on living a life that you cannot afford, start moving towards a lifestyle that you can actually afford.

Living within your means is the best thing to keep with you to stay away from situations like these. However, changing your lifestyle the way you have been living for long. However, if you get it done once you will surely live a better life ahead.

4.      Earn Enough:

   

To get out of debt you need to grab enough money from your pocket. Remember you need to earn money to meet your daily and ongoing expenses and have some amount on hand to pay the debt installments.  The faster you want to get out of debt, the more you need to earn money, limits your expenses and pay maximum amount for the debt installments and decrease the debt number.

Earning more is important for paying your debts. By just only cutting the expenses, you can never help you the way it should. Rather it will leave you with a bit more frustrated and stressed, as a result having a negative impact on your productivity and self-motivation.

Here I would like to mention that now everyone has to earn extra bucks to pay his/her debt but it surely makes the process a lot easier. And if you are really willing to do that, there are a number of options to earn money.

Related Read: How to Save Money in Your Health Insurance Plan?

5.      Selling Your Stuff:

   

For a person like me, it is obvious to have a lot of stuff that is not in your use. Get help from OLX or other such websites. They can offer you potential customers with better rates for the goods you are not using anymore.

Selling stuff, you don’t need will not only help you get rid of things you don’t need anymore and they can give you some instant cash.

6.      Working Harder:

   

Get yourself busy in some extra means of earning. But the second job is not fun, it requires a huge amount of energy, dedication and time to get these tasks done. But it is a must as well when you have bills to pay with a lot of zeros in it. Think of how stress you are by the end of 9 to 5 job and then getting into your car and rushing to the next 6 to 10 job, getting free from there and get back to home at 11, left with energy to do nothing.

However, putting some extra hours will give you some extra money but will surely suck the life out of you. If you are not willing to go this way, or it is hard for you to manage in this way or that, you can go for other options like delivery route services, babysitting, mall stores and others.

7.      Work Smarter:

   

No hard work can pay you well if you are not playing smartly. Smart working is one of my favorite ways to increase your income. Smart working will surely promote you at work and if it is not happening, it is the time to change your job. Find yourself a better paying job. If you are not getting any higher paying job, that you think you deserve, you must find ways of your own.

Tools that Helps to Get Out of Debt:

Top of the list, motivation is half the battle. But there are many other tools that can help you get out of debt easily, and if they exist, why not take advantage of them!

Getting out of debt in 2018 is far much easier than it was a few years ago. The credit crunch is an old story unless you completely burnt your credit scores. The credit systems these days can help you climb your way up, to the edge of the hole.

a)   Balance Transfer: In some cases, zero% balance transfer can offer an immediate relief from a higher credit card debt. But this situation is not a cure for all. A balance transfer is a lollipop that is used by credit card companies to attract new customers to sign up for a new credit card with an interest rate of zero% for the specific time period. But there are many drawbacks to this approach as well.

b)   Loans for Debt Consolidation: Finding unsecured personal loans is becoming easier day by day and are used to consolidate various many debts into an affordable payment on monthly basis.

c)   Debt Management and Credit Counseling: despite the fact that you can save money by paying your debt on your own, there are times that it just simply doesn’t work. In such instance, the credit counseling services or debt management services might help you. However, being in Pakistan you have to check with your lawyers or finance management companies if they are offering any such services or not.

Related Read: 25 Ways to Save Money in Pakistan if You are a Salaried Person

An Overview of Possibilities:

Let’s now end up the discussion with an aim to review of what are the possible and potential elements that we found in this discussion to help us deal with the debt management.

•         Diminish the use of a credit card
•         Sell things that are not in your use
•         List down goals you might focus on to earn money
•         Look for better salary increment or higher paying job
•         Transfer a high-interest rate balance
•         Overview of your debt and find the exact number of what you own in terms of debt
•         Recheck your budget
•         Make extra debt payments
•         Look into credit counseling

Once done with these essential steps, you are almost halfway done to pay to start getting rid of your rising debts.

Khurram Zahid

The post 7 Sure Fire Ways of Getting Out of Debt this Year (2018) 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.

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.

Apply for a Credit Card. Click here

Why should credit cards be used in the first place?

Here are some advantages of credit cards which show why you should use a credit card in the first place:

1. You do not have to count your cash before paying bills of any kind or check if you have enough of it or not.
2. It is also a safer way of carrying money; cash always attracts thieves and robbers especially in a high crime rate country like Pakistan.
3. For some, carrying cash itself seems a burden. Going to an ATM every now and then and filling wallets up with paper money can be very irritating.
4. Besides these obvious advantages of using credit cards, one also gets the favours that the credit card packages offer to the clients.

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

Credit cards and their utilization in Pakistan:

People have only recently started using credit cards in Pakistan and mainly for shopping. People create multiple accounts and various credit cards that offer various services and use them according to their needs. If extra money from the bank is used up, the bank charges a certain amount of interest that one can pay later. This service was mainly devised for salaried people who have limited amount of money available. Credit cards offer emergency loan from the bank and people can return it as soon as they get their salary. This is the general trend of credit card usage in Pakistan.

The “How to’s” of a credit card:

• Use of credit cards is not for people who have very little self-control. If you cannot use your credit smartly then you may put yourself at a disadvantage.
• Keeping more than one accounts can be very helpful for if one account exceeds limit, the other credit card remains at your disposal.
• Keep note of the amount of money you spend on your credit card so that you may spend the money you can pay back.
• Pay your credit card bills on time to avoid unnecessary financial burden.
• Credit limit is the amount you set as limit on your credit card. Keep it low to make it easier to pay it back.
• Stay updated to your bank’s policies and the status of your credit card account.

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

What to look for when getting a credit card?

The comparison of the packages and policies offered by different banks is very important. Following are a few steps to help you choose a suitable credit card:

• Don’t stick to one bank, look for packages most convenient for you instead.
• Prioritize taking advantage of the offers that the packages hold, Credit cards are more than just replacement of money.
• Use a package that offers ever-ready customer care, maximum discount offers on a wide-variety of brands, feasible security plans and insurance policies. It should also help you pay for online shopping efficiently.
• Check if the package you chose allows you to take as much advantage out of it as possible with little miscellaneous financial burdens.  

Related read: Most Rewarding Platinum Credit Card in Pakistan

5 banks and their credit card packages and policies:

Following are the top five banks in Pakistan that offer credit cards along with the packages and policies they offer.

• Bank Alfalah:

Bank Alfalah offers Three kinds of cards, classic/gold card, titanium card and platinum card. The packages are all the same however, as we move from classic to platinum, the services get better and wider. These services include worldwide accessibility, reward points, instalment pays, CIP lounge access etc. it also offers a cheque book with up to 50% credit limit utility and chip based credit cards with extra security.

• Faysal bank:

Faysal bank offers five types of credit cards, world, platinum, titanium (platinum-gold combo), mc² (unique style and chip technology) and Airblue (travel friendly credit). Through Airblue, we can accumulate blue miles and redeem them for free tickets. Their world credit card is the most expensive and offers maximum luxuries all around the world.

• Standard Chartered:

They offer the Visa Platinum card, Mastercard Titanium credit card and Visa Gold card. Apart from these this bank offers Cash Back credit card and the easy credit card. The easy card has the lowest financial charge and global accessibility while the cashback card reduces monthly financial burdens.

• UBL

UBL offers three types of cards, UBL credit card, UBL PSO auto credit card, and UBL Visa Platinum. Platinum is the most expensive whereas UBL credit card is the cheapest. The PSO auto credit offers fuel saving from PSO specifically.

• HBL

Habib Bank Limited offers four types of credit cards i.e. fuel saver, green, gold and platinum. The fuel saver card has further sub-types, green and gold. It basically offers saving on fuel cost ‘reducing the burden of monthly fuel expense’. The features and benefits of the gold and green credit card are the same whereas the platinum credit card offers everything at a grander level, offering and receiving larger amounts.

Credit cards are one step ahead to the financial development within our country, keeping up with these developments will make us financially compatible with other nations.

Khurram Zahid

The post 5 Top Banks Offering Credit Cards in Pakistan appeared first on Smartchoice.pk.

Just like in all aspects of life, you have a lot of competition here as well, and you may come across someone better than you every day. Moreover, this phenomenon is even age specific: even a young university student can be a more successful entrepreneur.

Pakistan is a developing country and has a lot of scope for entrepreneurs with innovative ideas. Though there are a few things that need to be taken care of, especially because of certain loopholes in the government laws and market dealing.

What to do if you are an entrepreneur in Pakistan

Here are a few points to take care of, as advised by successful entrepreneurs in Pakistan;

1. Switch to a reliable internet connection

Now a thing that comes in handy for a new startup in this high tech era is a good internet connection, which you can optimize to the max depending on your need. When you start up with your entrepreneurial venture, no matter what scope it might be, chances are that your advertisement, your promotions, your dealings, will primarily be over the internet. This is simply because the age of technology has taken over the world of business, and it is much easier to conduct business over the internet.

It is probable that social media will also be a large part of your business. Taking into account all of those things, for you to have an online presence, a good and reliable internet connection is mandatory.

Related read: Who Offers What? A List of Broadband Providers in Pakistan

2. Apply for credit card for online transactions

As a new business owner you will have a lot of expenses which is why it is imperative that you get a credit card according to your needs as well. Compare credit cards from the different Pakistani banks you like the most and get one according to your and your business’s needs. Not only is a credit card necessary for day to day expenses, it is also extremely useful in case you take advantage of online transactions.

With the kind of technology we have today, just by entering a few digits of your credit card into a website; you can buy nearly everything from any country in the world. For an entrepreneur, especially one that deals online, this is necessary.

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

3. Attend networking events

Entrepreneurship groups and forums will allow you to put your ideas forwards in front of peers and seniors who will help you improve. Do not shy away from criticism and make sure to act on it and improve yourself. Entrepreneur culture is at a rise nowadays in Pakistan. The youth is taking great interest in its formation and growth. A good example of this is the 1st Annual Entrepreneurship Conference of Entrepreneurship Development Institute (EDI), which has been set up by a team of fresh graduates from FAST National University that was held at the National Library in Islamabad. The aim of this conference is to learn, Create and Lead.

To further increase the knowledge about economic development they constructed a Global Entrepreneurship and Development Index (GEDI). If you are a striving entrepreneur, then programs like these are very helpful which help you get the right information and get you in touch with the right people/sponsors.

4. Find a mentor

Make sure your ideas and business models are realistic and can be practically implemented. A great way to do this is by meeting up with entrepreneurs of the area and listening to how they made it and what their story is. Their innovation can be inspiring and can help guide you better as well. Finding a mentor is essential to become a better entrepreneur. This is because a mentor has a lot of business advice to give and experience to base that advice on.

5. Keep learning, keep improving

This entrepreneurship game is not easy. It is a constant struggle and has a lot of ups and downs in it. You will have days in which you will want to give up, and days in which everything will seem amazing. When things get rough, you will want to quit. Remember that all of this is a part of life and that all you need to do is keep learning. Be it from networking events or from sponsors and mentors, learning is essential if you want to accomplish your goals some day.

Keeping all the points mentioned above under check, you can make the most of your business by avoiding all the possible mistakes one can make. An entrepreneur has it tough in this competitive environment but a lot can be accomplished by hard work, clear goals and dedication.

Khurram Zahid

The post New Entrepreneur in Pakistan? 5 Things you should be Doing Right Now appeared first on Smartchoice.pk.

To help the newbies who have recently started using credit cards, here is a list of points that will help you use your credit cards smartly. By the end of this post you will became a pro at using your credit card and also will have an idea of how to choose a credit card that provides the maximum benefits to you.

Tracking your spending

Always keep track of your spending. The card receipts that the cashiers hand you are your friend. They are not for the trash cans but for you to keep track of your spending.

On time payment

Schedule your payment time on your phone to help you remember when to pay off your credit card bills. The months that you use your card more than usual you should always remember to pay it off the next workday.

Smart credit limit

This is a very crucial point as it governs the fact that how much you can spend at one given time. If you have set forth a limit of Rs. 3 lacs for example and you forget to pay your bill then you are more likely to drown under debt rather than a smaller credit limit i.e. Rs 50,000.

Check your statements

Checking your statements on a regular basis is a major plus for card money users, as it helps timely payments. They have vital information regarding changes in interest rates, changes in account terms, account activity, minimum payment warnings and transaction fees. These statements can help track how much you spend where you spend so that you can keep a check on yourself if your inner shopaholic decides to show his/her face.

Efficient use of Store cards

Store cards are basically credit cards of high street chains like Chen One, Gul Ahmad etc in Pakistan. They work the same way as a credit card where you can pay the credit at the end of the month. We advise you to keep less store cards as too many of them might be difficult to manage.

Never exceed your limit

These are words to live buy if you want to live interest free. Never exceed your credit limit because you are charged an additional fee with every exceeding payment. So, it is better to decline your transaction if it is above your credit limit. This also helps to flag habitual customers and can result in cancelling of your credit card.

Why is it important to make credit card comparison:

In order to find the right credit card for yourself the most important part is to compare different banking systems and what they can offer you as a reward point.

There are numerous credit card discount options that are now a day accessible which offer a wide range of benefits. These include discount offer on multiple brands, cash backs, security plan, insurances policies, hospital plans, discounts at restaurants, book stores and so many similar advantages.

What needs to be kept in mind while getting a card it that whether it will fulfill your needs and requirements or not. Credits cards help you to get rid of the need to carry cash and make it easier for an individual to make payments especially when buying online services.

For people who love to shop credit card discount offer are a huge added advantage other than not having the trouble to carry large amounts of cash with you.

In Pakistan, many credit cards offer a huge array of discounts at different brands. Bank Alfalah credit card is a thriving example that offer discounts on Amir Adnan, Al-Razi Healthcare, Avari, Shapes, Liberty Books, PTDC,  Habitt, Port Grand, Puma,  Studio Empoli, Food Panda, Careem, Highland Resort, DHL and Beach Luxury.

Similarly, HBL credit card offers amazing discounts on IL Posto Caffe & Ristorante, 1969 & time goes on, Aamir Adnan, Alpha Supermarket, Aga Khan Clinical Laboratories, Arizona Grill, Avari Hotel, Beach Luxury Hotel, Bar B Q Tonight, Beaute Collection and many more places.

Khurram Zahid

The post How to Enjoy your Credit Card without Going into Debt appeared first on Smartchoice.pk.