Yes, credit cards can be a good alternative for a holiday loan, but they can fund only small expenses. Further, they are an affordable option when they carry lower interest rates than vacation loans.
Want to explore the world and not have enough money? You can start your dream trip with small holiday loans.
It may seem strange to borrow money to have fun, but the number of people looking for holiday-specific loans rises year after year. Below is the table that shows the rising trend:
| Year | The Total borrowed amount by Brits (in millions) |
|---|---|
| 2016 | £109.4 |
| 2017 | £112.5 |
| 2018 | £114.2 |
This trend was disrupted when the pandemic broke out, but people have begun looking for funding sources to unwind.
What are loans for holidays?
Loans for holidays are personal loans to finance your trip. Whether you need money to fill the gap due to a savings shortfall or you want to pay for your entire tour, you can seek easy holiday loans.
You can borrow between £1,000 and £25,000. However,Note that the repayment period may vary at the time of the actual loan process. Depending on the borrowing amount and your repaying capacity, it may be less or more than the aforementioned timeframe.
CashFacts offers these loans at fixed interest rates. The size of monthly payments will remain exact during the loan term. We provide these loans only to meet travel expenses specifically. You are strictly prohibited from using borrowed money for:
Getting the best holiday loans is not as easy as filling out the application form. These short term loans are unsecured, so interest rates could go somewhat higher. However, a lender will consider other factors to decide the interest rates like:
It may seem very exciting to fund your trip, but do not forget that it is your responsibility to pay off the debt. You require paying interest on top of what you borrow, increasing your financial burden.
As market rates vary by lenders, you should do proper research to choose a lender that suits your needs. Use online loan calculators to see how many monthly payments you will be making after borrowing a certain amount of money and see if your budget allows it.
Having an idea of your affordability beforehand whittles down the chances of rejection during the processing stage.
It is in your hand to make a choice about a lender. We have listed some points for you below to understand how our travel loans are better:Three simple steps to follow to apply for a travel loan with us:
It is crucial to have a good credit history to qualify for a personal loan for travel purposes. Most lenders will not entertain your application if they find your credit report is not up to snuff.
Well, you do not need to be disappointed if that is the case as we offer bad credit finance. We believe that a less-than-perfect credit rating must not come in your way to enjoy a dream tour.
Interest rates for poor credit people will be slightly more than those with a stellar credit report. They could be between 8.99% and 18.95%, still lower than the market rates.
If you want to secure a deal at more affordable interest rates, you will likely have to make either of the following arrangements:
We make all possible efforts to provide travel loans for bad credit people at competitive interest rates. Keeping your financial safety and interest in mind, the borrowing limit is lower, up to £20,000.
A lender rarely approves an application for a holiday loan when you are out of work. You can demonstrate your repaying capacity with a passive income source, yet you cannot qualify for these loans.
Unemployed loans have been designed to meet financial emergencies when you are jobless and a holiday trip is not an emergency. However, sometimes your trip can be tangled with emergencies.
For instance -it is likely that you have already lost your job when your flight is due to take off. You may not have enough savings to pay for accommodation, food, and drink expenses. In such a scenario, you are eligible to qualify for emergency holiday loans.
Fees generally decide whether you will be able to get a personal loan for vacation at affordable interest rates or not. When choosing the best deal, you will have to look over interest rates and fees in the bargain. The latter may vary by lenders, which is why a deal becomes expensive or affordable.
Our loan products are inexpensive not just because of attractive interest rates but because of the low fee structure.
| Fee Types | Fee charged |
|---|---|
| Establishment fees | £100 |
| Monthly fees | Nil |
| Cancellation fees | £150 |
| Early repayment fees | Nil* |
| Late payment fees | £18 |
| Hidden fees | Nil |
*We will not charge early repayment fees provided you inform us before the due date. Doing so without keeping us in the loop will cost you 10% of the additional amount you are paying off.
You may not be able to make a decision about whether you should borrow or set aside. This entirely depends on your financial situation. Of course, the latter seems to be a more favourable option when your budget does not allow it.
The following table points out some benefits and risks of fast holiday loans so you can make the right decision.
Even though we provide quick holiday loans at the most competitive interest rates, you will likely find it hard to pay off the debt on time. The most common reason for it is fluctuating financial situation. You can lose your job, or any significant emergencies can crop up.
If you doubt that you may fall behind the due date, just tell us. We will certainly help you in the following ways:
Looking to make a trip? Apply for loans for a holiday.
Yes, credit cards can be a good alternative for a holiday loan, but they can fund only small expenses. Further, they are an affordable option when they carry lower interest rates than vacation loans.
A vacation loan works as any other regular loan, so you will have to make payment as immediately as you get money. Repayments cannot be delayed until your trip is over because otherwise, it will increase the cost of debt.
It depends on your individual circumstances and affordability to pay back the debt.
Yes, they can improve your credit score if you make payments on time and your lender informs credit reference agencies of your financial discipline.
Yes, we do.
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