If you’re planning a trip abroad – over the Christmas period or in 2020 – then you may need some financial help to pay for it. There are lots of options for holiday loans, from holiday loans for bad credit to long-term finance that you can repay over a year or more. Whether you’re thinking about a ski trip in January, somewhere hot in Europe during the summer, or a more exotic and far flung destination, there are plenty of holiday finance loans that will help to ensure that you get there.
Holiday loan uk
Using a loan for a holiday can give you a lot more freedom. With a little extra finance you could visit places you’ve always longed to see and considerably extend your trip. You might be able to pay for family or friends to come with you or enjoy upgrades or experiences that a basic budget wouldn’t stretch to. If you’re considering holiday loans for your next trip then these are some of the questions that you need to ask:
- How much holiday finance loans do you need? Make a list of the destinations that you’re looking to travel to and then work out what the costs are likely to be. If you can be flexible in terms of when you travel it might be worth identifying the cheapest months of the year to go. Include everything in your calculations, from the cost of transfers between the airport and the hotel, to daily budgets for food (if the hotel is not all-inclusive) and the cost of entertainment and internal travel too.
- How much can you afford to borrow? It’s important to make sure that whatever you apply for in terms of holiday loans leaves you able to cover the repayments once you’re back. You can test affordability for your borrowing by finding out how much the monthly repayments will be and adding this on to your current outgoings to see what is left. If the numbers don’t quite work it may be worth looking at other options, such as a longer term loan with lower monthly repayments.
- When are you looking to borrow holiday loans? If you’re planning to travel imminently then make sure you’re applying for finance with a provider that is able to process your application quickly. Often, the simplest and fastest options are available online – this is also where you may be able to find the best interest rates too.
Holiday loans for poor credit
Even if you don’t have the perfect credit score that doesn’t mean that you won’t have access to holiday loans. A whole spectrum of lenders exist today and many of them have a range of products that are specifically designed to cater to people who don’t have a great credit history. Holiday loans for bad credit can give you options if you’ve had problems in the past but still want to access finance to pay for a trip abroad. If you apply for this type of loan you’re much more likely to be accepted than when making an application to a more traditional lender with strict criteria when it comes to credit history. Make sure you’re aware of the interest rate when looking at holiday loans for poor credit and how this is likely to impact what your monthly repayments are going to be.
Taking a loan payment holiday
A loan payment holiday is basically an agreement with the lender that allows you to skip one or more monthly payments. This is something that is always agreed in advance with the lender. A loan payment holiday can be incredibly useful if you’re planning to go abroad and don’t want to have to cover the cost of repaying the loan until you’re back. If you’re keen to take a loan payment holiday then ask the lender you’re considering applying to whether this is something that they offer. Not every lender will be willing to consider this and it’s essential that you don’t start skipping loan repayments without the agreement of the lender. You should also ask how a loan payment holiday will affect what you owe. Be wary that this may mean an increase in your costs either before or after the holiday period.
Does taking a loan payment holiday affect your credit rating?
If you have the permission of the lender to take a loan payment holiday and you stick to the agreed terms then it shouldn’t. If you stop making payments without permission or you continue to avoid repayments after the end of the agreed period then this will affect your credit score. It’s also worth checking whether a lender will record the payment holiday as an arrangement to pay, as this is something that will impact your credit score in a very negative way.
Holiday loans come in all shapes and sizes and can enable you to fulfil your travel dreams. From holiday loans for bad credit to those that allow you to delay your repayments there are lots of options out there to help you create your perfect trip next year.