Best Credit Cards in Pakistan – Compare & Choose

Credit cards have become one of the most widely adopted payment methods worldwide. However, it’s essential to first understand what exactly a credit card is.

How Do Credit Cards Work?

Consider a scenario where you have funds in your bank account. When you utilize your ATM card to withdraw cash or make purchases, you’re essentially using money that belongs to you. But what happens when your account balance is zero? This is precisely where credit cards come into play. While banks are the primary issuers of credit cards, other financial institutions can also provide them.

These cards empower the holder to access funds and conduct transactions using money supplied by the issuing entity. To put it more simply, the issuer is extending you a line of credit. The individual holding the card is obligated to reimburse the borrowed amount at the conclusion of each monthly cycle. If the entire balance is settled, no additional charges are incurred. However, partial payments or delayed settlements result in the accrual of interest charges.

Advantages of Using a Credit Card

1. Facilitate Significant Purchases

Consider the scenario of needing to acquire a smartphone, which has become a necessity in today’s world. Even entry-level budget smartphones now typically cost around PKR 30,000. Given the current economic situation in Pakistan, this amount represents a substantial sum for a large portion of the population. Credit cards enable individuals to make essential and valuable purchases without disrupting their regular budget.

Users can opt for interest-free installment plans to purchase the smartphone. The total cost of PKR 30,000 can be spread over three, six, nine, or twelve months. This flexibility extends to other significant purchases such as kitchen appliances and more. We strongly advise individuals facing budget constraints to utilize credit cards for high-value acquisitions.

2. Incentives and Perks

An additional advantage of credit cards is the array of rewards they offer, including discounts and cashback offers. Beyond these, card issuers provide other benefits such as complimentary access to exclusive airport lounges and points that can be reclaimed for various rewards. Premier banks likewise frequently incorporate coincidental inclusion and travel protection as a feature of their Mastercard bundles.

3. Enhances Credit Rating

While not currently a significant factor in Pakistan, credit scores hold considerable importance in Western societies. When applying for loans, financial institutions base their decisions largely on an individual’s credit score. By consistently making timely payments, credit card users can substantially improve their credit rating. This improvement can lead to more favorable interest rates on future loans.

4. Enhanced Security

Credit cards offer a more elevated level as most banks provide purchase protection. In cases of fraudulent transactions or the receipt of defective goods, the bank typically reimburses the cardholder for the losses incurred.

5. Cash Withdrawals Without Interest

It’s important to note that not all merchants accept debit or credit cards for payments. This is particularly common in Pakistan, where many businesses prefer cash transactions to avoid tax implications. In situations where you lack funds in your bank account, there’s no need for concern. Most banks offer the option to withdraw cash using your credit card without causing interest charges.

Is a Credit Card Permissible in Islamic Law?

Many Muslims harbor various misconceptions about credit cards, including the belief that they are inherently ‘un-Islamic’. This section aims to address this question before delving into a comprehensive comparison of the top credit cards available in Pakistan. It’s worth noting that prominent Islamic scholars generally concur that credit cards are not prohibited in Islam.

However, there is one crucial caveat: the credit card must not involve any form of riba (interest). The moment interest becomes a factor, the credit card becomes haram or impermissible under Islamic law. By their fundamental nature, credit cards are not inherently prohibited. As long as the user settles the full balance, no interest is incurred.

Thus, the permissibility largely depends on how the individual uses the credit card. Those lacking sound financial management skills may find themselves accruing interest charges. This situation should be avoided at all costs, as escaping the resulting debt cycle can prove extremely challenging. It’s important to remember that there is a consensus among all Islamic schools of thought regarding the prohibition of riba.

For more detailed information on the Islamic perspective of credit card usage, refer to the guidelines provided by the State Bank of Pakistan.

How to Obtain a Credit Card in Pakistan?

The process of acquiring a credit card in Pakistan has become quite straightforward. Applicants have three main options:

Option 1: Visit the nearby branch of any bank to initiate the application process. The bank will request relevant information, including bank statements, proof of income, and other documents to assess your eligibility.
Option 2: Contact your bank’s customer service line and apply for a credit card via phone. Since they already possess your information, they can often make an immediate decision regarding card issuance.
Option 3: Many banks now offer their customers the ability to apply for credit cards directly through their mobile banking applications. However, this option is typically only available to select customers.

Credit Card Eligibility Requirements in Pakistan

Each bank establishes its own specific eligibility criteria. Typically, they set a minimum salary requirement for employed individuals. For self-employed applicants, a minimum account balance is often required. To acquire detailed information about the eligibility criteria, it’s advisable to visit a branch or contact your bank’s customer service helpline.

Pakistan’s Best Credit Cards

The table below provides a detailed comparison of the top credit cards available in Pakistan.

Credit Card	Bank	Annual Fee	Rewards	Notable Features	APR
HBL Platinum Credit Card	HBL	PKR 10,000	1 reward point for every PKR 24 spent	Lounge Access at Airports; Discounts at Restaurants	40%
HBL Fuel Saver Gold Credit Card	HBL	PKR 7,200		Up to 5% Cashback on Fuel Purchases	–
SCB Saadiq Mastercard Platinum Credit Card	Standard Chartered Bank			5% Cashback on Dining, Grocery and E-CommerceUnlimited Airport Lounge Access in 25+ DestinationsUp to 50% discount on Udemy	-Shariah Compliant
UBL Platinum Credit Card	United Bank Limited	PKR 6,000	3 Reward Points for Every PKR 100 Foreign Spent1 Reward Point for Every PKR 1 Spend Domestically	Worldwide Discounts by Visa Merchants	24% – 40%
MCB Platinum Credit Card	MCB Bank	PKR 16,000	1 Reward Point for Every PKR 200 Spent	Access to CIP Lounges in PakistanAccidental Death Coverage	36% – 41%
Bank Alfalah Visa Platinum	Bank Alfalah	PKR 12,000	0.25 Orbits Local,0.5 Orbits International on PKR 50	Airport Lounge Access and Jetsetter Travel Program	42%
Bank Alfalah Ultra Cashback Card	Bank Alfalah	PKR 4,999	7% Cashback (Up to 1,500 Per Month)		42%
Bank Alfalah Mastercard OptimusCredit Card	Bank Alfalah	PKR 6,250	–	50% Cashback on Netflix Subscription (Platinum Card Holders Only)0% Balance Transfer Facility (BTF)	42%
Allied Visa Gold Credit Card	Allied Bank	PKR 2,000	–	Free CIP Lounge Access2 Supplementary Cards for Family	28%
Askari World Mastercard Credit Card	Askari Bank	PKR 4,250	2 Reward Points for Every PKR 50	10% Cash Back on Booking.comTravel Inconvenience InsuranceAccess to the Majestic Lounge at Karachi Airport	42%

Conclusion

This finishes up our article on the best credit cards in Pakistan. Keep in mind that with responsible financial management, credit cards can be very advantageous. However, if you struggle with money management, we advise avoiding credit cards entirely.

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