Holiday Loans
As we swiftly move from the cold gloomy winter months many of us are already fantasizing over their next adventure and the upcoming summer holidays. The January blues are real and it’s hard not to give ourselves something to look
forward to. Already started surfing the net to bag your next adventure, that means you have already started the process, so if you’re one of those last minute people why not try planning in advance for a change.
Avoiding leaving things until the last minute means the whole planning process is less stressful and you can look forward to your getaway with no added baggage (pardon the pun). For many family’s summer holidays are what they look forward to the most all year round, because who doesn’t love an adventure with their loved ones or a general break from routine and reality. BUT for most family’s the holiday season isn’t always affordable, so in this short blog we’re going to take a look at whether a holiday loan is right for you.
What Is A Holiday Loan?
A holiday loan is an unsecured personal loan often used to cover dream holiday destinations. It’s no secret that the price of weekend getaways and holidays are on the rise constantly and the money can often be difficult to put together all in one chunk. Applying for a holiday loan allows you to borrow the amount you need and pay it back over a period of time that suits your needs best.
Advantages of Holiday Loans
Although personal loans don’t have the best reputation and are often portrayed negatively there are many positives.
Fast approvals
It’s 2024 and things have moved on massively so all applications are done online. Once you have applied, your application will be looked at if you have been accepted you could have access to the funds as quickly as the same day. Meaning you could book that dream getaway sooner rather than later.
Improve and add benefits to your credit score
In previous blogs we have discussed the importance of credit scores and why they should be kept positive. So keeping it positive is a must. Losing track of payments reflects negatively so taking on a holiday loan can help build and repair your score. Unsecured loans unlike other loans do not require any sort of collateral to be processed. This simply means that you do not have to offer any of your personal belongings or assets because the lender is not valuing your assets the whole process tends to be a lot faster.
Disadvantages of holiday loans
Like any loan there will be disadvantages and you could find yourself in a sticky situation.
Long term commitments
Depending on the amount you borrow will depend on the period of time you pay back your loan. Although the cost is spread the amount of time may be a little lengthy and payments and management is crucial. If you’re someone who doesn’t manage money well then long term commitments can be a little more difficult. Making repayments on time is important as the smallest mistake could lead to more debt and impact your credit score negatively.
High Interest Rates
As discussed previously personal loans do not require collateral, but lending large amounts of money can be risky especially to those who have poor credit history so you may find interest rates can be a little on the higher side.
