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You can use a portion of the inherited amount to increase your down payment and lower your total loan cost and utilise the rest to invest and also keep aside a part of it as your emergency fund. It is better not to use it lump sum.

I have a co-branded Citi-Jet credit card. I utilise the benefits as a frequent traveller by Jet Airways. However their partnership has now ended. How will my current credit points be accounted for?

Kumardeep,Mumbai

Existing card holders can still utilise the benefits till mid July. Post that you have the option of shifting to the card program that replaces it,called as PremierMiles. You have the option to pay a fee of Rs 1,000 to switch to the new cards and will obtain credit points for the first year that will be adjusted for your balance period.

I recently received Rs 2 lakh bonus from my employer. Can you please advise where should I invest it?

Vikram Oza,Pune

A bonus is very handy income as it has not been budgeted for and is a surprise package. You could invest in a systematic investment plan or use it to beef up your emergency cash corpus,add a lump sum savings for your down payment or if you already have a loan,use it to prepay a good chunk of your outstanding loan amount. You could use it on something in your wish list,which you have been putting off for a long time due to lack of funds and this also includes critical healthcare,which you have been postponing. The options are endless,it really comes down to your particular needs.

Is taking loan on credit card a good option?

Malvika Ray,Lucknow

When you have a pressing need that cannot wait even for a few days you could opt for a loan against a credit card. However remember that it comes with a prepayment penalty,so even if you have the cash to repay as soon as possible,you will still end up paying a certain percentage of your loan as a penalty.

The expert is CEO,Bankbazaar.com

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