Managing your credit effectively
Noor Bank’s Personal Finance Remittance feature makes life and decisions easy for you
In today’s world, there are a number of financial commitments that need to be met. This is not always possible without additional funds from personal finance. Today, popular financing requirements are educational expenses, off-shore properties, weddings, vacations, or other significant uses, including investment opportunities.
With a gradual rise in profit/interest rates expected this year due to the US Fed Rate hike, effective credit management has become even more significant. Here are some tips to manage your finances in this environment:
• Build a good credit history: Plan your expenses and repay your dues promptly. Periodically checking your credit report with the Etihad Credit bureau will ensure that there aren’t any issues or trends that could hamper your ability to borrow in the future.
• Manage your debts: Paying any finances early can offer you financial gains, as your total costs will reduce. Debt consolidation is also an approach you should consider if you already have multiple finances. This will allow you to merge multiple existing finances into a single one to suit your repayment capacity, often at a lower total cost.
• Save your income: Studies show that 10 to 15 per cent of a person’s annual income should be set aside for effective retirement planning. Regular monthly savings plans allow you to accumulate and build your funds, towards your goals, be it retirement or children’s university education. Such plans often include riders, which provide protection against unforeseen circumstances such as illness, disability or death.
• Research your options: Based on your needs, examine various options out there. The customer research team at Noor Bank observed that several of its clients required a personal finance for an overseas real-estate investment. As a result, it developed an exclusive ‘Personal Finance Remittance’ feature, which enable customers to remit directly to their selected destination accounts in their home countries and benefit from preferential foreign exchange rates.
Finally, always be vigilant of terms and conditions while taking financing decisions. Consider Islamic banking, which offers a transparent option, without any hidden charges, in line with Shariah principles. The writer is the Business Head of Consumer Finance, Noor Bank.