You can borrow for a specific purpose, such as financing a new car, paying tuition fees, renovating a home or even paying higher interest debts. Borrowings are generally divided in to two types:
Secured borrowings are guaranteed by collateral, which is an item of equal or greater value than the amount of the loan, such as a car loan or a home loan. If a borrower cannot keep up with his loan arrangement and repay his loan, his collateral may be taken to pay off part, or all, of his debt.
Unsecured borrowings, or more often referred to as personal loans, do not require collateral and are made based on your credit score and ability to repay. An unsecured borrowing typically charges a higher rate of interest compared to a secured one.
Credit cards are a form of unsecured borrowing that allow you to make purchases without shelling out cash. Here are some important things to remember:
Credit is a powerful tool that comes in different forms. By understanding how credit works, you will learn to manage it successfully and use it to your advantage.
For any concerns, you may call us at (632) 8995-9999 or send us a message through www.citibank.com.ph.
Citibank, N.A. Philippine Branch is supervised by Bangko Sentral ng Pilipinas with telephone number (632) 8708-7087.