Searching for Holiday Loans?
Could a Holiday loan be the perfect solution for you? We all get excited by the thought of a holiday. Whether it be escaping for a week in the sun or exploring the slopes in the Alps. But before we are able to jet off anywhere and enjoy ourselves, we have to first ask ourselves how are we going to afford our trip? Having immediate access to funds is not always plausible. A holiday loan for many can be and often is a very quick and easy solution. However, it is never a good idea to be in debt. Therefore, exploring all available options is a sensible idea.
What is a Holiday Loan ?
Put simply, a holiday loan (also known as a travel loan) is like any other personal loan. However it is taken out specifically to cover the cost of a trip either abroad or within the UK. It is important when searching for a holiday loan to read up on the options available to you. You will find that many payday loan companies will target you if you are looking to book a holiday. It is always best to avoid payday loans whenever possible due to extremely high interest rates. Money ID do not partner with payday loan lenders, meaning you can compare holiday loan options available to you without having to fear accidentally agreeing to a financially crippling loan.
A personal loan can more often than not be used for anything, meaning that the trip of a lifetime is never off the table. Holiday loans are unsecured loans, which means they do not take collateral, such as your property or other assets in the case you cannot pay back the loan. In most cases with personal loans, the quicker you are able to pay off your loan the less interest you end up paying in the long run. Higher repayments over a shorter period of time will mean you pay less interest overall. A loan over a longer period will allow lower monthly repayments however you will end up paying more interest overall.
Advantages of Getting an Unsecured Holiday Loan
A fixed- rate personal loan helps you budget month on month as you know when and exactly how much you will have to pay back each month. It is important to note that there are also a few variable-rate personal loans available where interest rates may change depending on the Bank of England base rates and or market forces. Therefore, always check the terms of your loan before agreeing as repayments could increase or decrease due to these variables.
Filling in a Moneyid.co.uk Get My Rates soft search application form will present you with numerous suitable holiday loans for you, without affecting your credit score. This is important as it prevents you from applying for a loan you may get rejected for, which could negatively affect your credit score. A poor credit score could prevent you from getting other credit loans in the future. A personal loan provides you with cash, which can be spent however you please. There is no need to worry about similar charges to credit card fees.
Disadvantages of a Holiday Loan
Being in debt is a bad thing. Loans are very helpful when having to pay out a large lump sum at once. However, it is always possible your personal circumstances may change and the loan becomes unmanageable. It is likely that if you have poor history that you will be considered a high risk to lenders. Usually, you will find you are less likely to be accepted for a loan if this is the case. There is a high chance that the rate you have seen on an ad is not the same as the rate you are offered. Lenders are only required to offer the advertised rate to 51% of successful applicants. The remaining 49% can be offered a different rate, which are usually higher.
The Interest rates offered to you are usually based on your credit score. Therefore, improving your score is very beneficial. Missing repayments can lead to fees piling up, causing stress and leave you always chasing repayments. If you are struggling with your repayments the most sensible option is, to be honest with your lender. It is possible that they may alter your repayment plan to help suit your situation.