Islamic Credit Card In Pakistan is a type of Credit Card which is issued by the Islamic Banks and it is based on the principles of Islamic Shariah.
Islamic Credit Card In Pakistan (2022)
5 Things to Consider Before Buying an Islamic Credit Card. Islamic credit cards are growing in popularity as more consumers are looking to use their financial tools in ways that make them feel good about their purchase decisions and that align with their faith and beliefs.
Before you decide to buy an Islamic credit card, there are a few things you need to keep in mind to make sure you get the most out of your purchase and the product’s features. Here are 5 things to consider before buying an Islamic credit card.
1) Types of Islamic Credit Cards
A halal credit card is one that operates according to Islamic principles, or sharia. What’s so Islamic about a credit card? Well, there are some things it can’t do—for example, you can’t make interest-bearing purchases. But Islamic cards still have a number of features that are useful for Muslims and non-Muslims alike. Here are five important factors you should consider before buying one.
A halal credit card is one that operates according to Islamic principles, or sharia. What’s so Islamic about a credit card? Well, there are some things it can’t do—for example, you can’t make interest-bearing purchases. But Islamic cards still have a number of features that are useful for Muslims and non-Muslims alike. Here are five important factors you should consider before buying one.
What type of Islamic credit card do I need?
The first thing to ask yourself is what your financial needs are: Are you looking for a prepaid card or line of credit? Do you want cash back rewards and other perks like travel insurance and extended warranties on purchases? Does it matter if your monthly payment goes toward charity donations instead of accruing interest with a bank?
How much spending power do you require—do you need just enough room in your balance to hold your expenses until payday, or would you prefer more flexibility with large purchases in mind as well. All these things will affect which kind of Islamic credit card suits your particular needs best.
2) The Pros and Cons of Islamic Payment Processing
Islamic payment processing is a relatively new financial service that’s primarily available for Muslims in Muslim-majority countries. However, recent expansion into non-Muslim countries such as Canada and Australia means that Islamic finance is quickly growing in popularity with people of all faiths.
One of its primary benefits is that it encourages responsible spending; it’s similar to a prepaid debit card (think Bluebird by American Express or MINT by Chase) but contains no interest charges or excessive fees. If you use an Islamic credit card, you might even get rewards for using it responsibly.
Here are five things you should consider before applying for one Here’s How to Find an Islamic Credit Card: Although there aren’t many providers operating in Western markets yet, you can still find them if you know where to look. In America, two top companies to contact include Green Dot Bank and Payza. In Canada, PC Financial offers Islamic accounts.
3) Debit vs. Credit Cards
Many Muslims avoid using credit cards, because they consider them sinful. However, there is a way for you to use them without running into problems with your faith: pay off your balance in full every month. This should be easy if you’re conscientious about spending and have a good handle on what your income and expenses are like. But even if it isn’t easy—and it probably won’t be—you don’t want that debt hanging over your head anyway.
Using a credit card can help you develop good financial habits such as paying off debt promptly and monitoring how much money you spend each month—something that can save you thousands of dollars in interest payments over time. These lessons will come in handy whether or not you get a credit card (or eventually transition to another type of financing).
Some people might argue that it’s better to just cut up all your plastic, but remember: If you make sure not to charge more than what you can pay back at once, then no matter which type of financing option works best for you, there’s nothing wrong with using it. And whether or not they admit it, many people find debit cards easier than cash when buying things online.
4) What are the Fees?
If you’re interested in a rewards card, make sure you really understand how points work. Points can expire if they aren’t used within a certain period of time. They may also be redeemable for merchandise that isn’t as valuable as cash or other points/miles cards (e.g., maybe you need $10 worth of merchandise to get $10 worth of miles).
So, rewards programs are only worthwhile if you pay off your balance every month and use your card regularly. If you miss payments because you forget or otherwise have issues with on-time payments.
A credit card is probably not right for you—just like any other loan wouldn’t be right for someone who struggles with money management. You should also check what fees will be charged over and above your APR for things like late payments or charges that exceed your minimum payment requirement.
Look at what happens if you don’t carry a balance. Many cards offer lower interest rates if there’s no annual fee, so it’s definitely something to consider when shopping around. When you’re comparing different options, make sure to note which programs give lower APRs based on good behavior versus those whose rates just come down automatically after X amount of months without a late payment or increased limit request by the customer!
5) Should I Get a Rewards Card?
In general, it’s always a good idea to look for cards that offer cash back or rewards. And while you might think that a credit card is best used as a way to build up your credit, it can be risky if you have no plans of paying off your balance each month. If you find yourself carrying a balance, you’ll end up paying more in interest than you would by using an unsecured line of credit like a personal loan or installment plan.
To determine whether or not getting into debt with rewards is something worth considering, ask yourself: Is there a reason I need an introductory zero-percent APR? If not, consider opening up another type of credit card that doesn’t carry any fees and use it responsibly instead.
Should I go with one of my bank’s cards?: It can often make sense to apply for your bank’s credit card first. Depending on which bank you choose, some may also give you extra perks including travel insurance, discounts at certain retailers and even other types of financial services such as investing accounts or checking accounts.
While many do advertise cash back rewards programs and even points programs that can be redeemed for merchandise (airline tickets being a popular option), watch out for these high annual percentage rates (APRs) because banks tend to charge their customers higher rates compared to other providers who aren’t tied down financially by investments in their own companies’ products.
Also Read: Cheapest Credit Card In Pakistan (2022)
Conclusion
An Islamic credit card is a great tool to utilize in your financial planning. The rewards and general use of these cards can help you save money, while spreading positive benefits around. If you’re interested in getting one, here are some things to consider before buying: 1) Read over all terms and conditions thoroughly before signing up for a new card.
2) Review your finances; if you tend to carry a balance on your cards, it might not be ideal for you to have an interest-free card that carries high cash advance fees 3) Find out if your issuing bank offers extra incentives for using their own credit cards 4) Figure out if there are hidden costs like annual membership fees 5) Do you plan on traveling internationally?
