Ranking Pakistan's Best Credit and Debit Cards
Fight Back Against Food Inflation To Make Your Tummy AND Wallet Happy
Jibran
The global financial system is inherently designed to work in favor of the banks and against the common folk. Therefore, in today’s world, it is imperative for us to be financially savvy to take back whatever we can get.
Let us start with food.
While the average disposable income is consistently in decline on account of inflation and taxes, our love for eating out is here to stay. To cater for our never-ending appetite, easing some burden on our pockets is the need of the hour.
Today, we will discuss the best credit and debit cards in the market, ranked in order. While discounts are the driving factor here, factors such as the ease of attaining the said card along with its cost effectiveness, are also taken into account in the ranking. Finally, the overall king of plastic will be crowned, so do not skip the end.
Credit Cards vs Debit Cards
Before we get to our rankings, let us first discuss the main distinction in the mechanism of credit and debit cards.
As far as eligibility is concerned, credit cards require applicants to pass thresholds relating to salary and credit history, in order to mitigate the bank’s risk of customer default. One important factor is that one does not necessarily need to have a bank account to carry the said bank’s credit card. Conversely, to be eligible for a high-end debt card, the bank requires considerable funds deposited in the bank account. More on that later.
It is important to remember that the bank will only be bearing the cost of discounts, if it is getting something back in return. In the case of credit cards, apart from transaction fees, the bank earn by charging interest on late and overdue bill payments. They do not want you to default, but they do not want you to pay on time either. Irony is rife in the banking industry.
In the debit cards' case, apart from transaction fees, the bank enjoys return by investing the funds, which the customers have to deposit in their accounts, to be eligible for the debit card in question. Naturally, the bank will always prefer to receive current account deposits thus you will note in our list below that the current account balance requirement is always significantly less than the saving account threshold.
5 - HBL Platinum Credit Card
Annual Fee: PKR 20,000
Fee Reversal Criteria: Spending PKR 350,000 within 2 months.
Discounts: 2/5 Click here for detail.
Attainability: 3/5
Cost Effectiveness: 2/5
Verdict: Average discounts with a high spending threshold for annual fee reversal, makes it lucky to be part of our list. It is merely here to make up the numbers, sadly.
4 - MCB Platinum Credit Card
Annual Fee: PKR 19,000
Fee Reversal Criteria: Spending PKR 100,000 within 2 months.
Discounts: 2/5 Click here for detail.
Attainability: 3/5
Cost Effectiveness: 3/5
Verdict: The discounts are not too extensive, but relatively easy availability and fee reversal works in favor of this all-rounder card. This all-rounder though will not win you any matches.
Annual Fee: PKR 20,000
Fee Reversal Criteria: Spending PKR 1 million within 12 months.
Discounts: 5/5 Click here for detail.
Attainability: 2/5
Cost Effectiveness: 1/5
Verdict: The best discounts in the market but the impractically high fee reversal requirement hinders it from being number one on our list. If you can meet the fee reversal spending threshold or you can bear the cost, your wallet will thank you for this piece of plastic.
3 - Faysal Islami World Noor Card
Annual Fee: PKR 26,000
Fee Reversal Criteria: A reduced fee of PKR 2,500 will be charged after spending PKR 1 Million within 12 months.
Discounts: 4/5 Click here for detail.
Attainability: 2/5
Cost Effectiveness: 1/5
Verdict: The discounts are a sight to behold. Unfortunately, that is where the fun stops. The fee reversal requirement does not paint a pretty picture.
Note: Please do not tell FBL that their Noor Card has been classified as a credit card here. The author spends all his money on food and cannot afford a lawyer.
Annual Fee: PKR 10,000
Fee Reversal Criteria: Spending PKR 60K within 2 months.
Discounts: 4/5 Click here for detail.
Attainability: 3/5
Cost Effectiveness: 5/5
Verdict: Great discounts coupled with low fee reversal requirement makes this under-rated gem a must-have, whether you are an account holder or not. It takes the crown, despite being the junior sibling of the BOP World Credit Card. If you can compromise slightly on the flashy discounts offered by its big brother; the low and easily reversible fee along with less stringent eligibility criteria, is deemed the practical way to go.
Now let us now move towards the snobby world of high-end debit cards. The entry here is somewhat restricted due to high account balance requirements, but the offered discounts are extensive enough to force the hand of those who have surplus funds lying around.
Pakistan’s Five Best Debit Cards
5 – Meezan Visa Infinite Debit Card
Annual Fee: PKR 30,000
Fee Wavier Balance Requirement: PKR 15 million in Bank Account or PKR 20 million in Term Deposit.
Discounts: 4/5 Click here for detail.
Attainability: 1/5
Cost Effectiveness: 0/5
Verdict: Substantial discounts are a great watch. But the exorbitant annual fee and almost extortionate account balance requirements, are not for the faint hearted. Let's quicky move on.
4 – Faysal Islami Priority World Debit Card
Annual Fee: PKR 17,000
Fee Wavier Balance Requirement: PKR 5 million in Checking Account or PKR 15 million in Term Deposit.
Discounts: 4/5 Click here for detail.
Attainability: 1/5
Cost Effectiveness: 1/5
Verdict: Great option to get substantial discounts but the extremely high threshold for fee reversal severely dampens its appeal.
2 – UBL Visa Infinite Debit Card
Annual Fee: While the card itself is free of charge, PKR 1,500 will be charged every month the account balance falls underneath the threshold defined below. The perils of priority banking.
Fee Wavier Balance Requirement: PKR 2 million in Current Account or PKR 4 million in Saving Account.
Discounts: 4/5 Click here for detail.
Attainability: 2/5
Cost Effectiveness: 5/5
Honorable Mention: An equally good alternative is the UBL Signature Debit Card. Click here to find out.
Verdict: UBL has two particularly good options. The saving account balance requirement is relatively less compared to the other debit cards discussed above, but not low enough to place it on top of the pile. It truly is lonely at the top.
Annual Fee: PKR 20,000
Fee Wavier Balance Requirement: PKR 2 million in Current Account or PKR 5 million in Saving Account.
Discounts: 5/5 Click here for detail.
Attainability: 2/5
Cost Effectiveness: 2/5
Verdict: Probably the joint best out there in terms of discounts but again the requirements are steep for fee reversal (especially in case of saving accounts) which stops it from being further up in our ranking. If there was an award for the best looking card, this will be surely be on top. But looks do tend to deceive, since our number one debit card is probably the ugliest one out there.
Annual Fee: PKR 17,500
Fee Wavier Balance Requirement: PKR 500K in Current Account or PKR 1 million in Saving Account.
Discounts: 5/5 Click here for detail
Attainability: 3/5
Cost Effectiveness: 3/5
Verdict: ABL graces us with the best debit card in the market with great discounts and low requirements for fee reversal. This all rounder is a match winner. The only downside to an otherwise perfect card is that the fee reversal in the first year has now been discontinued.
Note: To get your hands on this , PKR 2 million needs to deposited in a Current / Saving Account or the annual income of the applicant should be north of PKR 5 million.
Personal Favorite: Pound for Pound King of Plastic (Debit and Credit)
BOP Platinum Credit Card
The BOP Platinum Credit Card takes the crown, reigning over both credit and debit universes, offering the optimum balance of great discounts and low requirements relating to eligibility and fee reversal. The ABL Premium Debit Card and the UBL Visa Infinite Debit Card take the other places on the podium. The hanging sword of minimum account balance requirement does not do any favors to these otherwise great products.
To the banks not featured here, either you guys do not have balance sheets that currently require card customers, or you just do not care about how hungry / frugal the author is.
Pro tip: Making credit and compounding your friends
It is advisable to use debit cards, if you are more comfortable using your own funds and you feel that you are always at risk of forgetting payment deadlines.
Conversely, do venture going for credit cards, if you are comfortable with credit and you are willing to work to beat the banks at their own game. If that is indeed your viewpoint, you will be well served by using the bank’s money, while getting a return on your own funds, which otherwise would have been gone with that buffet. By the time you pay your bill, you would have secured interest for a few weeks. The financial impact of this practice may seem immaterial in isolation, but once you let compounding take its course, the result will surprise you. You can thank me in 10 years (or earlier if you would like).
Lastly, if you are not eligible for the fanciest of credit cards to start off; do not fret. Use the available credit card for a few months, build up your credit history and work your way up to the best cards in the market.
Happy banking / eating!
Now that we know what the bank wants out of us, let us try to find out how we can work the system in our favor.
Here are Pakistan’s best credit and debit cards, in order. Do click on the card you fancy, for further detail.
Pakistan’s Five Best Credit Cards
