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Investment FAQs

Investment FAQs

What are the Best Ways to build up your Credit Score?

Here are some of the best practices that will help you build your credit score:-

  • Pay your credit card balances on time. Delayed payments can affect your credit score drastically. In case your current credit card interest rates are too high for you, you can opt for a balance transfer with Citibank and save on interest. That way, you can make the payment on time and improve your credit score.
  • Pay your bills on time. Bills that go unpaid may be sold to a collection agency, which will affect your credit score negatively.
  • Keep your credit utilization low. In other words, pay off your total credit card balances each month instead of the minimum repayment. In case you want to carry the credit card balance to the next month, ensure that it does not exceed 30% of your credit limit.
  • Pay your monthly loan installments on time. If you default on your loan payments, your credit score will take a dip.
  • Avoid applying for too many credit cards at once. Having too many credit card accounts can lower your average account age, which makes up a part of your credit score.

Which Is Better, a Credit Card Loan or a Personal Loan?

Both personal loans and credit card loans are a convenient means to obtain quick fund for all types of financial needs. However, the suitability may differ according to your individual requirements.

A Personal Loan is an appropriate choice if:-

  • You need to borrow a large sum. (Like funding your wedding)
  • You want to consolidate your existing loans.
  • You are willing to wait a few days for loan approval.

A Credit Card Loan is the appropriate choice if:-

  • You want to borrow only a small amount. (Like a gadget purchase)
  • Your bank loan application is rejected.
  • You need funds urgently.

As you can see, the suitability of both the loans depends on your individual needs. Citibank offers both credit card loans and personal loans in UAE. All you need to do is, consider your financial needs carefully and make the appropriate choice.

What are the Benefits of Having an Bank Account for Personal Loan?

Opening a bank account is one of the most convenient ways to manage your money as well as getting loans. If you are planning to opt for a personal loan, having a bank account can be a great convenience.

Smooth transactions - If you have a bank account, making your monthly loan payments becomes very simple and quick.

Save Money – Banks offer you an interest rate when you open a savings account. The interest helps the money to grow over time.

Convenience – It makes your life easier as you can carry our transactions easily. When need of cash, you can get from ATMs.

Online Banking – One of the big benefits is you can carry out any number of transactions from anywhere using mobiles, tablets, laptops or any other device. Most banks offer online banking and mobile banking facilities.

Easy approval - When it comes to loan approvals, most banks tend to favour those customers who already have a bank account with them.

Hence if you want to opt for a personal loan, make sure to open a savings account or a current account with the bank you are planning to take the loan from.

Should I Take a Personal Loan for Education?

An education loan or student loan may seem like a straightforward choice when you require them for funding education. However, education loans have certain eligibility requirements such as you must fund 15% of the expenses or apply for specific courses and colleges only or pursue a full-time education. Hence, if you find yourself facing such hurdles with an education loan or other bank loans, a personal loan is a great way to secure 100% funding for your educational needs. Personal loans require minimal paperwork and processing time and hence are a great option to secure funds for your educational needs without any hassles. Apply for a personal loan in UAE with Citibank and fulfil your dreams effortlessly.

The views expressed here are those of the authors and do not necessarily represent or reflect the views of Citibank UAE