Vacation and Travel Loans: Everything You Need to KnowApril 22, 2019
Do you dream of jet-setting to Paris, strolling along the Champs-Élysées, and admiring the glistening lights of the Eiffel Tower from your luxury hotel room? Or maybe a food-stall-filled backpacking trip around Southeast Asia is more your style – hostels and all. Whatever your dream vacation plans are, you’ll need a way to pay for your holiday. That’s where a vacation loan can help.
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From airfare and accommodation to meals and activities, the costs of a holiday can quickly add up. And when that money isn’t sitting in the bank already, you might think your holiday plans are a distant dream. With a vacation and travel loan, however, your dream vacation is within close reach. It can give you the money you need to pay for your vacation and take the time off you deserve.
What is a travel loan?
A travel loan is just what it sounds like – a loan for a holiday. It’s a type of personal loan you can use to pay for your vacation, whether that’s a last-minute trip to Vegas or a long-awaited honeymoon in Bali. With a personal travel loan, you can borrow the money you need for your vacation fund. You won’t have to go through a lengthy approval process at a bank or pay back the funds on your next paycheck. A vacation loan is also deposited directly into your bank account before you travel, so you’re not stuck taking out expensive cash advances at foreign ATMs.
How can you fund your travel or vacation plans?
Whether you’re planning a backpacking trip around Europe or a sun-soaked beach vacation in Maui, there are numerous ways you can save and pay for your holiday. With a travel rewards credit card, you can rack up points that can help pay for your flights and hotels. With a personal travel loan, you can get the extra cash you need to pay for excursions and daily spending. But, even before you cash in your credit card points or take out a holiday loan, here’s how to save for a vacation:
- Start a vacation fund. Start saving early by transferring money every payday to a dedicated travel fund, even if it’s just a few bucks. To make it easy, set up a separate savings account that you can automatically transfer money to. To help this vacation fund grow, consider the 50/20/30 budget – with 30% of your income going toward your travel money.
- Cut back on unnecessary expenses. Do you buy a coffee every morning? Go out for lunch every day? These are costs you can cut back on. Start brewing your cup of joe at home and packing a homemade lunch, and you’ll see your savings grow.
- Reduce your monthly bills. From TV and internet to electricity and water bills, you can save for your vacation by cutting down your bills. Ditch your cable TV subscription and be more conscious of your energy use at home to lower your monthly bills and put more money toward your holiday.
- Use a budget app. Need help budgeting? A good budget app can be your best friend when it comes to monitoring your financial situation. A budgeting app can track where your money goes and help you reach your financial goals.
What are the advantages of a vacation loan?
You might be wondering, “Is a vacation loan a good idea?” Well, unless you have the money in the bank to pay for your entire vacation up front, a personal loan for travel can be a great option. A personal loan has a fixed repayment schedule, no application fees, no hidden costs, and no maintenance fees. The interest rate on your loan amount is often lower than credit card interest rates, and you can pay back your loan on a schedule that works for you. With an unsecured personal loan, you won’t have to put up any collateral either.
What are the disadvantages of a vacation loan?
If your vacation tastes are expensive, you may find yourself repaying your travel loan over a long period of time. So, when planning that dream trip to Greece and taking out a loan for a holiday, be realistic about what you can afford. This might mean flying economy over business class and staying in an Airbnb over a 5-star hotel. Only borrow what you can pay back in a reasonable amount of time so you’re not stressing about money after your vacation.
Do you need a good credit score to get a loan for travel or vacation?
Bad credit doesn’t have to ruin your vacation plans. Unlike bank loans, you don’t need a good credit score to get a personal loan for travel. Whether your credit score is mediocre, poor, or even non-existent, you can still get approval for a travel loan when banks say no. As long as you have an open bank account, proof of regular income, and meet a few other requirements, you can get a personal loan with bad credit. Plus, if you make your loan payments on time, this can actually help you improve your credit score.
Where can you apply for a travel loan?
Planning your dream vacation and need a travel loan? Spring Financial can help. At Spring Financial, we make personal loans easy. You can apply online, get a quote, review your loan agreement, provide your banking info, and get the money deposited directly to your account – all from the comfort of your home. There’s no need to go to a bank or wait weeks for an approval. Our personal loans are also significantly cheaper than any payday loan, and our payment plans are flexible. Find out if you’re eligible for a Spring Financial personal vacation loan and apply for one today.
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