A few years ago, I made one of the worst financial mistakes of my life—ignoring my credit score. It didn’t seem like a big deal at first, until I needed a loan, and the bank’s polite rejection turned into a rude awakening. That was the start of a tough but eye-opening journey. Today, I want to share exactly what I did, what worked, and what didn’t—no fluff, no top-10 lists—just my real experience navigating Pakistan’s credit system and regaining control of my finances.
1. Understanding Where I Stood Financially
When I first pulled my credit report from State Bank’s eCIB, I was shocked. Late payments, unsettled loans, and credit utilization over 90%. I realized I needed to take accountability before fixing anything.
Pro Tip: Always check your credit report every 3-6 months. You might find errors that are silently damaging your score.
2. The Credit Card Trap That Almost Ruined Me
Like many people, I fell into the minimum payment trap. I used my card like free money. What I didn’t realize was that this habit was tanking my credit score.
Source: Dawn Business - Credit Cards in Pakistan
Lesson: Paying the minimum is just prolonging debt—pay in full or avoid it entirely.
3. Negotiating with Lenders Actually Works
At one point, I owed over Rs. 200,000 on multiple credit lines. Instead of hiding, I contacted the banks. To my surprise, many were open to negotiating a reduced settlement or giving me a payment plan.
Pro Tip: Always talk to your lender before defaulting. You’ll be surprised at the solutions they can offer.
Source: Pakistan Banks Association - Loan Settlement Guidelines
4. Using a Secured Credit Card to Rebuild Trust
I opened a secured credit card with a small Rs. 50,000 deposit. That card helped me build positive history again and proved to banks that I was financially responsible.
Source: Meezan Bank - Secured Credit Cards
5. The 30% Rule Changed Everything
By keeping my credit usage under 30% of the available limit, I saw a noticeable score jump within just 2 months.
Pro Tip: Even if your limit is Rs. 100,000, try to stay below Rs. 30,000 usage.
6. Automating Payments Was a Lifesaver
Late payments were killing my score. Once I set up auto-debit through my banking app, I never missed another due date.
Source: HBL Digital Banking
7. Staying Away from Buy Now, Pay Later Traps
I stopped using platforms that offered easy installment plans. These services sound helpful but are dangerous if not managed smartly.
Source: Profit Pakistan - BNPL Industry Risks
8. I Added a Side Hustle to Keep My Debt in Check
Money was tight, so I started freelance writing and used the extra income strictly to pay down debt. This helped speed up my journey.
Pro Tip: Even a small Rs. 10,000/month freelance gig can change your credit recovery timeline.
9. Monitoring My Progress Became a Habit
I used CreditFix to track my score and flag risky patterns. Just seeing my score improve gave me a psychological boost.
10. Teaching Others Helped Me Stay Accountable
By helping a friend fix their credit, I stayed more focused on mine. It made me more cautious, aware, and responsible.
Conclusion:
According to me at First Fixing your credit isn’t a one-time hack—it’s a mindset shift. I didn’t use shortcuts or magic tools. I got serious, made a plan, stuck to it, and climbed back from a score in the low 400s to one that now qualifies me for loans with confidence. If I can do it with all my missteps, so can you.
Keep reading this blog for more stories like mine, because financial freedom starts with awareness—and action.
If you're student so Go and Checkout my Blog on Top Low-Interest Student Loan Picks for 2025
FAQs
Q1: How long does it take to rebuild credit in Pakistan?
A: Generally 6-12 months of consistent payments and low usage show improvement.
Q2: Is there a free way to check credit in Pakistan?
A: Yes, you can request your eCIB report once a year for free from the SBP.
Q3: Will settling my loan hurt my credit?
A: It can, slightly. But settling is better than defaulting.
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Blog Written By
Muhammad Rohan is a Pakistani blogger and digital strategist passionate about helping people make smarter money moves. He has worked with banking startups and writes based on personal finance experiences. When not writing, Rohan loves reviewing apps that pay and sharing honest product comparisons. Check out new blogs written by him on Our website.
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