Using a loan to go on holiday 

As summer approaches, you may be considering booking a last-minute holiday if you do not have anything booked already. Whilst this sort of holiday may be best funded by your savings, you may need to obtain some extra money to fund travel for something like a friend or family member’s wedding or you may want to fund a holiday of a lifetime, such as a honeymoon or a long-term travelling trip. Something which could be an experience of a lifetime which you may need money for in order to pay for it is a tour around Europe or to the Holy Land and beyond with Tours for Christians. You may never get the chance to do something like this again, and since you don’t want to miss out, a loan may be a brilliant option to help you.

Thus, the easiest and most convenient way to do fund something like this is a low rate, a personal loan which can help you pay for the trip.

In this guide, we are going to be discussing how you can use a loan to pay for your holiday, as well as some tips for finding the best for your buck.

What is a holiday loan?

A holiday loan refers to a cheap personal loan which you take out for the purposes of travel if your current finances can’t quite cover them in one go. You can get a holiday loan from a variety of banks as a well as online lenders. Obviously, the terms and conditions will vary widely but in most cases, loans start at £1,000. Dependant on the provider, you will agree on a set period of time by which you make small instalments in order to pay back with you borrowed, plus interest.

Advantages of a holiday loan

One brilliant advantage of choosing a holiday loan is that your payments will be fixed, which will ultimately make it easier to budget. Another advantage of a holiday loan is that you can generally choose when it is you repay the amount that you have borrowed between one and five years.

You will pay less interest overall if you can afford to pay the holiday loans within a shorter timeframe, so consider this. You have the option of spreading out your cost and reducing the amount of the repayment if it is necessary.

Disadvantages of a holiday loan

As you may be aware, a lender will take your credit score into account when they are deciding what interest rates they are going to charge you. In addition to this, they will use your credit score to determine how much you will be able to borrow. Since this is the case, you may find you are actually unable to borrow at all at the market-leading loan rate prices.

In short, only people with good credit scores will be accepted for the top deals, whilst those who have undesirable credit scores in the lower numbers will be offered a loan with a high-interest rate or will be refused the credit altogether.

Are there alternatives to a holiday loan?

Yes, there are a few things you can do to avoid having to take out a holiday loan if it doesn’t suit your situation.

Many of the leading credit card providers which are available today offer 0% for an introductory period which works on any purchases or balance transfers. This means that you can borrow the money to pay for a dream holiday or event abroad completely free of charge. This would be a great option for someone who wants to borrow a smaller amount than a holiday loan might offer as their minimum.

If you borrow on a 0% purchase credit card, it can prove to be rather costly if you do fail to pay off the full amount within the interest free-period, however. But this is no different from failing to pay back a loan on time.

Keep in mind that, just like with any type of loan, whether that be a payday loan, a guarantor loan or a holiday loan, that the applicants with the best credit score will receive the best rates on a 0% credit card.

How to find the best deal

When it comes to any type of loan, the best way to find a good deal is to shop around before making any applications. Making too many applications itself can damage your credit score so be sure that you are happy with the deal you are applying for.