Frequently Asked Questions

We have compiled a list of frequently asked questions for your ease of reference. Should you feel that some question has gone unanswered, please feel free to reach out to us.

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Yes, you have to be a minimum of 21 years old to apply as a primary card holder. However, to qualify as a supplementary card holder you can be as young as 18 years old.

A debit card is a card that gives you access to your bank account. Upon using a debit card to pay for something, you directly take money out of your own bank account. A credit card on the other hand is a type of loan given to you by your bank. When you use your credit card to pay for something, you are drawing down on a line of credit extended to you by your bank.

A credit card is a type of loan given to you by your bank. Most credit cards have limits assigned to them. This limit defines how much you can spend on this card. The reason bank's assign limits to your card is to prevent you from taking on more credit than you can pay off.

Most bank's have their respective policies regarding credit limits. Your limit is dependable on your income level, employment status, and how much credit you already have. There could be additional requirements a bank may evaluate before actually deciding on giving you a credit card and assigning you a limit.

The bank will send you a monthly statement which reflects the amount you have spent in a month, the minimum amount you need to pay and the due date of the payment.

Most bank's will send you a monthly statement reflecting the minimum amount due. This minimum amount is generally about 5% of the outstanding amount on your card.

Paying just the minimum amount may result in higher interest costs over the long term. When you pay just the minimum amount most of the payment goes towards paying the interest applicable on your balance and a very little portion of the minimum payment that you have paid goes towards paying off the principal (i.e. the outstanding balance). 

For example your balance on the card is PKR 10,000, the monthly rate on your card is 3.33%, and your minimum amount is PKR 500. Out of the PKR 500 that you pay as the minimum payment, PKR 333 will be the interest rate portion and the remaining PKR 166 the principal.

Paying your credit card bill is simple. In most cases, you can pay your bill through the relevant bank's internet banking portal, you can drop your payment through a drop box located at every branch of the bank whose credit card you are using, or lastly you can pay over the counter in cash at one of the bank's branches.

If your payment is received after the due date, you will be charged late payment charges over and above what you needed to pay as minimum payment. In the event you are making a minimum payment after the due date, the bank will first deduct the interest rate portion, then the late fee, and if anything is left from your payment after these two fees the remainder of the amount will go towards your principal amount owed. 

You are discouraged to making late payments simply because being consistently late on your payments will negatively affect your credit worthiness and will result in higher borrowing costs.

In the event you cross your credit limit, the bank may decline your transaction.  Some credit card providers may permit you to complete your transaction, but they will charge you an overlimit fee at the end of the month.

A supplementary card is a second or third card provided to you for one of your family member (s). The number of supplementary card offered varies from bank to bank based on the bank's respective internal policies. Supplementary cards are useful if you have a child studying abroad, or a spouse who requires a card for expenses. However, please remember that the total limit assigned to you shall be bifurcated among the supplementary cards you have had issued. Also be aware as the primary borrower, you will be responsible to ensure that payments are made against the supplementary cards.

The annual percentage rate (APR) is the rate the bank charges on your outstanding balance for the credit card. Usually these rates are quite high. Sometimes these rates are referred to as 'finance charges'

Credit cards help you transact easily and efficiently when you are traveling or when you need to make a large payment for which you do not have the cash in hand at the time. Credit cards are a widely accepted payment mode. Credit cards should only be used for emergencies, or when you know you will have the money in the near future. Using your card recklessly can land you in an awful amount of debt and hardship.

Being irregular with your payments will land you in quite a bit of problems. First and foremost being irregular with payments will lead to ruining your credit standing. In the future other bank (s) will be reluctant to lend to you, and it will be difficult to get any sort of financing from banks or other financial institutions.  Defaulting on your outstanding balance will most possibly lead to litigation where you may be liable to pay the  bank/ lending institution in full plus any accrued interest, not to mention other legal implications/costs.

An eCIB is a record of all  the loans you have taken out or had approved on your name. This is a report banks use to gauge your credit worthiness. Having a poor credit score makes it difficult to obtain any form of financing.  This record is maintained with the State Bank of Pakistan.

If you frequently apply for financing products, bear in mind that every time a financial institution runs a credit check on you, your credit score goes down. This tells institutions that you are in constant need of credit and you may possibly be a high risk borrower.

Only apply for a credit card or other financing facility when you are really in need of one. Try to avoid applying too frequently.

Debt burden is a ratio that bank's look at to evaluate how much  of your income is going towards paying off debt that you currently owe to other institutions. The debt burden gives financial institutions an idea of how much more debt can you take on based on your existing income level. Generally bank's are hesitant to offer loans to individuals who already have many loans or credit facilities to their name. Since these people are already paying high portions of their income towards paying off existing loans that they have taken on.

Visa and MasterCard are major payments companies. They are not the issuer of the card, the bank is the issuer.  A Visa Credit card merely validates that the transactions conducted through this card will be processed through the Visa network - same is the case for MasterCard. The common factor about all the Visa or Master cards issued by different banks in Pakistan is that the Visa Card or MasterCard  can be used at any merchant that accepts Visa or MasterCards.

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