Having a credit card

Society Business and Career
21

First of all you can’t live without Credit in capitalist market. Today, you are going to enter into new system, it can ruin your financial life or make it a lot better. I am assuming you are in US/Canada or Europe. Lets start !

The terms/words you have to understand before you apply for credit:
(i will try to make it as much non-techie as i can)

1) Credit Score / Credit worthiness
A credit score is a numerical expression based on a statistical analysis of a person’s credit files, to represent the creditworthiness of that person. Their are three main Bureau’s in USA: Equifax, Experian & TransUnion. All of three use Fair Isaac Corp. method for calculating your credit score which is ranging from 350-850. If you are in USA you can request your credit report freely once a year from: https://www.annualcreditreport.com

2) Secure Credit Card
I would recommend apply for Secured Credit Card for all the starters. You pay 500$ or 300$ depending on your limit to obtain a credit card from lets say Bank of America. You are paying them collateral before they issue you are credit card. When you close your account you will receive your money back. But this is the good way for starters to know how card works, build credit history, what is penalty for late payments..etc..etc
**
You must apply for credit to start building your credit history/report/worthiness. This is the matter of life & death. It will have adverse effects on your life if you don’t start building it as soon as possible or abuse your credit limits.**

A small plan for you:

  1. Forget about credit score/worthiness in the starting. Reality Check: It will take atleast 3-5 years for you to come in the score of 750 & up !

  2. Don’t even think about applying for Visa/Master/American Express. You will be definitely denied for this in the starting - This is normal.

  3. The best choice for you is apply for departmental store credit or secured credit. Use them wisely for 6-12 months. Then we will proceed to next step.

Any other questions i am here, drop me pm !

22

Life and Death comes only from Allah swt and WHO (PLEASE DO TELL ME SO I CAN KNOCK SOME SENSE INTO THEM) WHO says that you cannot live without credit? Who says you will not survive without credit?! rose_petal, do not listen to these people, if you want to live a simple life without any headaches, I strongly advise you to stay away from credit cards unless you really need it to make big purchases, even then you have your bank account.

23

Elaborate why you suggest using cards for large purchases and how rose_petal achieve this? Is it so called halal now ? She don't even have credit history yet, who's going to provide her credit for large purchases. That's why i wrote before, look at the broader picture.

Ps. Look Slave of Allah, this is business forum not religion section. So don't derail the thread !

24

Re: Having a credit card

by large purchases I did not mean a house or a $10,000 bike... let's take tuition fees, cc are handy when it comes to these since it saves time. I never called it "haram" in the first place don't know why you say "now it's halal?".. anyways, I know this is a business forum but as Muslims Islam comes first and Islam does teach you how to do good business bringing barakah into it. So I disagree that "religion" is not connected to this in any way. Also I am not derailing the thread, she asked if she should get a card, I presented my view and you presented yours. I respect that. That's all.

25

Thanks for respecting my view. But again if she don't have credit history how she will going to obtain credit line? She have to start from some where and the only solution is to start applying & using credit card. Its up to consumer if he/she is going to abused it or use it good way.

26

Re: Having a credit card

a good credit history and score is becoming more and more important to rent an apartment and to get a job.

forget anything else..build a good credit rating for that

27

Yehi main ny bhi kaha hy:D

Timepass - November 2012
28

Re: Having a credit card

i skip most long roman urdu posts :)

29

I know:wink:

30

Re: Having a credit card

Aap log mujh ghareeb par kyu naraz ho rahai hai :smokin:

I am niether scholar nor mufti .I just gave hadees of Prophet(pbuh).I know that taking interest is very bad as compared to other way round when you have to buy house,student scholarships etc which are all on interest and becomes one’s majboori.But still i am not sure what shariah ruling is that.Unfortunately we too have interest based banking system.But after pressure from Shiekh Akram Awan threat of seizing Islamabad in 2001 , Musharraf government started islamic banking in every bank .Now almost every bank has seperate islamic bank section plus more than 550 seperate islamic banks are working in Pakistan.

I gave hadees in refence to the present sitution of world economy based on interest and its implications .Thast why Prophet(pbuh) hadees words are so harsh as Interest Based System (Sarmaiya Darana Nizaam) puts wealth in few hands .Elite become more richer and poor become more poorer.Difffernce of have and have not eventually find a way of bloody revolution.In Quran ,interest is considered as War Against Allah and his Prophet(pbuh)

31

Re: Having a credit card

if interest is less than inflation then in real terms there is no interest as was stated in old days.

32

if u write something worth reading toh mein zara josh o kharosh say parhoon bhi

33

:lol: Ab mujhy itn ashaoq bhi nahi aap ko perhany likhany ka:wink:

34

Yaar again you get Sheikh Akram Awan w/e w/e.. Please provide the source for you claims, propaganda is not allowed !

For your kind information their was a ruling of Supreme court in 1990s to establish the complete Shariaah Compliance banking system in Pakistan, few years back Government requested the Supreme court to take its order back, coz its not possible. .. Ab yeh sheikh akram pata nahi kahan sey aa gaya ..hai !

35

Re: Having a credit card

in 20021 or 2002 he and his 50,000 fellows announced a march towards Islamabad to set aside Interest based system.He said i know Government of Pakistan cannot apply it while dealing with outer world as its all depends upon interest oriented system but atleast dvelop a seperte islamic banking system parallel to old system in Pakistan and eventually transform it into riba free system.GoP then requested him that we would do it but plz. give us some time.After that islamic banking system started and now every bank has seperate section of it.Dr.Asrar Ahemd is also of the view now-a-days its not possible that anyone can have a 100% interest free economy like our banks and pays and GP fund interest etc etc but atlest he suggests that we should do at max. to avoid like in Pakistan where credit card system is rare we can avoid that ,similarly leasing and interest on money kept in banks and different schemes can be easily avoided and many people in Pakistan do so.

36

Sources? ..

In your previous reply you claim 500 islamic banks are in Pakistan, again source?..

37

Re: Having a credit card

Source is youtube video whic i posted in religion thread.

38

Re: Having a credit card

**Pakistan’s Islamic Banks Plan to Open 230 New Outlets in 2009 **

By Shanthy Nambiar and Farhan Sharif

Jan. 27,2009 (Bloomberg) –

Pakistan’s Islamic banks, which saw assets grow 20 times in the past five years, plan to expand their network of outlets this year to take advantage of rising demand for Shariah-compliant loans.

Islamic lenders may add about 230 branches in 2009, driven by the world’s second-biggest Muslim population, Pervez Said, director of Islamic banking at the State Bank of Pakistan, the central bank, said in a telephone interview today. **These banks have 500 branches, after adding 210 outlets last year.
**

Pakistan is promoting growth in Islamic finance to expand the reach of the banking sector which has less than 25 million deposit accounts. Shariah-compliant loans are forecast to rise to 277 billion rupees ($3.5 billion) this year from 185 billion in 2008, according to central bank data.

“Islamic banking has the ability to take banking to sectors outside conventional banking because of peoples’ beliefs,” said the central bank’s Said, 52, who started the Islamic banking department in 2003.

Pakistan’s Islamic banks expanded assets by** 7 percent to 251 billion rupees as of Sept. 30 last year from 235 billion rupees in 2007.** Shariah-compliant lenders account for about 5 percent of total banking assets, which the central bank aims to raise to **12 percent **by 2012.

“Islamic banks are in the phase of acquiring market presence,” said Farhan Rizvi, banking analyst at JS Global Capital Ltd. in Karachi. “That doesn’t mean their income growth won’t be hurt in the same way as conventional banks.”

**Profit Drop **

Bank profitability is expected to decline as much as 18 percent this year as economic expansion tapers, according to JS Global. South Asia’s second-biggest economy is forecast to grow at its slowest pace in seven years because of political wrangling and worsening security.

Loans for farming and lending to small and medium enterprises will be primary growth areas for Islamic banking, said the central bank’s Said.

Agriculture accounts for a quarter of Pakistan’s $146 billion economy and employs 45 percent of the workforce. Loan disbursement to farmers rose 10.2 percent in the six months ended Dec. 31, according to the central bank.

The central bank forecasts Islamic loans to small and medium companies will reach **20 percent of total lending by 2012 from 2.9 percent in 2007. **

**Coverage Gaps **

Islamic banking “is positioned to respond to the mindsets of the people,” said Afaq Khan, the Dubai-based chief executive officer of Standard Chartered Plc’s Islamic banking unit. “Branch expansion will moderate but will continue to fill coverage gaps.” **Standard Chartered has 10 Islamic bank branches in Pakistan.
**

Six lenders, including Meezan Bank Ltd. and Dubai Islamic Bank, have Islamic banking licenses, compared with one in 2003, central bank data shows. Twelve conventional banks, including** London-based Standard Chartered** have opened Islamic branches, up from three five years ago.

**Islamic law bans the payment and receipt of interest, prohibits investment in businesses such as gambling and alcohol, and stresses profit-sharing. Pakistan is the world’s second- most populous Muslim nation after Indonesia, with about 97 percent of its 174 million people following the faith. **

To contact the reporters on this story: Shanthy Nambiar in Bangkok at [email protected]; Farhan Sharif in Karachi, Pakistan at [email protected].
**Last Updated: January 27, 2009 **

Bloomberg.com: India & Pakistan

39

Re: Having a credit card

**Wonderful Article of Guardian on 29 January,2009
**
Global recession - where did all the money go? | Business | guardian.co.uk

40

Re: Having a credit card

what is the source of funding for the islamic banks, what do they invest in etc?