Pay monthly holidays are not only for people who have excellent credit! A poor credit rating does not have to limit you in terms of options for your dream vacation. Choose wisely and you, too, can enjoy your perfect holiday to some tropical destination. Browse through the options, select the vacation you want, and then all you have to do is book and go! Easy, right?
What Is Bad Credit?
You might hear a lot of talk of "bad credit", especially if you're looking to borrow money. But what, exactly, constitutes bad credit? Well, your credit score is a number on a scale reflecting how much of a financial risk you are. You can find out your credit score in places like Equifax, or Experian, for example. Each place will have a different kind of scale, so your score will also be different, but around the same end of the spectrum.
Your score is determined by your financial habits, and every decision you make will affect this score positively or negatively. Debt and failure to pay bills on time will count negatively against your score, while keeping a good financial track record will count positively. We can't say for sure what is good or bad credit, but with Equifax, for example, "bad credit" is under 559, while Experian situates it at around 720 and lower.
Can I Go On Holiday With Bad Credit?
The good news is that while bad credit will certainly get in the way of scoring the best deals on the market, it will not necessarily stop you from getting loans or enjoying financing schemes. In fact, there are plenty of options for individuals with bad credit, including pay monthly holidays. That's right, even if your score is less than perfect, you can still go on your dream holiday and get financing for it.
Why Is A Pay Monthly Holiday A Good Option For Bad Credit?
If you're looking to go on vacation and your financial history isn't great, pay monthly holidays might be exactly what you were looking for. There are numerous reasons why they're great:
You can repay in affordable instalments
One of the best features of pay monthly holidays is that they allow you to repay the vacation in instalments, which makes the repayment amount much more affordable. You see, the cost is broken down into several instalments, so that you can pay smaller amounts that are easier to fit into your regular budget. The amounts and repayment duration depend on when you're leaving for your holiday. Now, that is a perk anyone can enjoy, but it's especially important for someone with bad credit.
You set your own instalments
If your income is not consistent, you may find that you have trouble repaying the same amount every month. This is especially true for individuals who are unemployed. Pay monthly holidays have the advantage of offering you the option of repaying as much as you want, as long as you repay the full sum by the deadline. So, assuming you are required to repay 12 weeks before you leave, you could pay £100 this month, £300 the following month, and £50 the month after that, for example. This is beneficial because it makes it less likely for you to miss payments and attract a negative credit score.
You don't have to pay interest
Something that puts this financing option ahead of others, when it comes to affordability and convenience, is the fact that you have no-interest options. A lot of borrowing options, especially those that specifically target individuals with a poor credit history, come with a very high interest rate attached. That can mean that you can pay even as much as double the amount you borrowed, and at only 10 repayment rates, you're looking at paying £400 a month for a £2000 holiday! That's a lot of money to fill someone else's pockets.
How Do I Improve My Credit Score?
Now, a bad credit score is not a permanent label and it can certainly be improved. You just have to take active steps towards becoming more financially responsible. Here are some of the things you can do to improve your score:
Pay your bills on time
You would not believe what a difference it makes when you're not late on the payment of your bills! Make sure that any regular bills and expenses you have, such as energy bills, water bills, council tax bills, etc. are all paid for within the time limit on a regular basis. It helps if you set up a direct debit payment, so that you make sure all the payments are made on time, and you don't run the risk of forgetting. That helps build up credit – and credibility.
Reduce credit cards
No one needs more than one credit card, so cutting back on them is a wise move, for a number of reasons. First of all, fewer cards mean less frivolous spending, because you have a lower limit. Second, it is easier to manage when you only have one card, not three. You can stay on top of the balance and pay it off on time, thus increasing your credit rating.
Pay off outstanding debt
Debt is never good, because it looms over your head constantly, but it's even worse for your credit. Make sure you pay off any debt or loans you've already got and you will witness your score grow. And make sure to use loans to your advantage – if you take on one with manageable payments, you can use it to increase your score by paying the instalments on time.
In conclusion, bad credit is not the end of the world! You can still benefit from a lot of financing options for holidays, including pay monthly holidays. In fact, this can be your ideal solution if you want to book now and pay later, in regular, affordable instalments that won't break the bank. If you're looking for alternatives to pay monthly holidays, you might want to look into holiday loans for bad credit.