Citibank Egypt Credit Responsibly

Basics of Credit

What is Credit?

A facility granted to you by the Bank, to have the privilege of "Buy Now!! And Pay Later!!"

Credit is an agreement between a lender (a bank, a store, a credit card company, or others) and a borrower. Money is given to the borrower, at certain terms of repayment, decided by the lender, beforehand.

Types of Credit

There are different types of credit available.

Credit cards are perhaps the most common type of personal credit. Using a credit card is like getting a loan. Each time you charge something, you actually 'borrow' the money until you pay it back. If you decide to pay the money back over time, the credit card company adds some charges to your account that must be paid along with the initial amount carried forward.

In the world of lending, loans are classified as:
- Secured Loans
- Unsecured Loans

Myths and Facts about Credit

Myths	Facts
If I have a problem or a dispute connected with my credit card account, I will stop paying and automatically the company will come to me.	If you have a dispute, report this to the Bank company within the stipulated time, as per the agreement.
It is up to the credit card company to decline a charge on my credit card, if I exceed my credit limit.	It is your responsibility too. Also, when your credit limit is exceeded you will be charged a fee.
Creditors won't send me pre-approved offers of credit unless they are certain I could manage the additional credit.	Your creditors may determine how much debt you can comfortably afford but handling this debt is your responsibility.
Credit is the main cause of financial trouble for most people	Spending is what actually gets people in trouble. Credit often makes it easier to spend, but credit itself is usually not the problem. The major problem is that many people avail credit so they can spend more than they earn. "Use Credit Wisely"

The content provided in this section is for general information purposes only and does not constitute financial advice or any other kind of advice. You must obtain specific advice about your specific circumstances from your own financial advisor and/or other advisors.

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