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Holiday Loans: The UK's Ultimate Guide To Pay For Your Next Trip

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Holiday Loans: The UK's Ultimate Guide To Pay For Your Next Trip

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When you want to go on a getaway, but the money is tight, you may want to consider holiday loans. It can be a great financing solution for people who need a break, but cannot easily afford one. Pay Monthly Holidays! But before you commit to getting a loan to travel, you need to learn everything about this financing option, so you can properly weigh benefits and drawbacks. Here is your ultimate guide to travelling on finance!

What Are Holiday Loans?

Holiday loans, as the name would suggest, are unsecured loans that you get in order to go on vacation or travel. It isn’t a common choice for everyone, but it can be used for a variety of different situations, so you should not overlook this option if you are planning an expensive trip that is difficult to cover.

How Do They Work?

At this point, you might be asking yourself “How do I get the best holiday loan?”. This type of personal loan works just like any other unsecured loan, in that you do not need to have collateral in order to get it. However, your credit score will be paramount to the decision of whether or not you can get financing, how much, and what the interest rate is. The better your financial history, the better the deal you can get.

Applying is simple and straight-forward –you can do it online by just filling in a form with all the relevant details. Your application will be assessed, and the lender will let you know whether or not you are accepted and then what documents you need to send in order to finalise your loan.

The amount you can get, as well as the interest rate, is dependent on your credit rating. The amounts and lending periods vary, but they usually sit at around £7,500 to £15,000, with a possible repayment term of between 12 and 60 months.

Once you get the loan, you will pay it back in fixed monthly instalments over a period that is previously agreed upon with the lender.

Who Can Get Loans For Holidays?

As long as you meet the criteria, you can benefit from this kind of financing. Here are some of the requirements to get holidays on finance.

However, if the credit check is a problem for you, there are other avenues you can pursue, that we will discuss shortly.

Who Offers Holiday Loans?

This financing option is available at many different lending companies, so make sure to look around and browse different lenders and financing opportunities. There are more options available than you think, and you are bound to find a lender or a broker who can strike a deal for you.

What Can You Use Holiday Finance For?

This type of finance can be used for any kind of travel you like, regardless of season. According to the Office for National Statistics, UK residents made 70.8 million overseas visits in 2016, 8% more than the previous year. These trips cost them a whopping £43.8 billion, a whole 12% more than in the previous year. With numbers like that, it's no wonder we need some help in the finance department when it comes to travelling.

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Holiday Loans vs. Credit Cards

You may be wondering whether a different financing option, such as credit cards, would be more appropriate than a loan. The truth is cards can have advantages and disadvantages, just like loans, so the best course of action is to take a close look at both of these options and decide which one fits your needs best.

Pros

Cons

The other major aspect to take into consideration is that bad credit is going to attract a high interest rate, which makes the loan more expensive. Just how much more expensive depends on how poor your rating is. Keep in mind the fact that different lenders will offer different terms for their loans, so it’s good to browse and see what your best option is.

Credit Cards Pros

Credit Cards Cons

How To Increase Your Credit Score

As mentioned, your credit score is the most important aspect of your application and the one that decides whether or not you are accepted, how much money you can borrow, and how high your interest rate will be. If your rating is less than stellar, there are things you can do to pull your credit up and help it along.

Don’t forget that you can set up direct debits to make sure you don’t miss payments and increase your credit score at the same time!

Alternatives To Credit Check Holiday Loans

If relying on your credit rating is not an option for you, you don’t have to give up. There are still alternatives to consider if you want to get financing for your vacation. There are options available for everyone, so check out possible choices.

As you can see, they can be an excellent option for financing when you’re broke, but still need a break. Carefully weigh the pros and cons and see if you can afford to borrow money for your weekend getaway, gap year, or summer adventure.

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