Aussies love to travel, and with the border now open and the Easter break coming up, people have begun planning their trips. If you’re one of those people and wonder how to fund your travels, you’re reading the right article.
What is a Travel & Holiday Loan?
The average Aussie spends nearly $5,000 on holiday expenses abroad in three weeks. When it comes to local holidays, the cost is close to $200 per night per person. This can be pretty expensive and weighs on your holiday budget.
A travel and holiday loan is a personal loan that you can use to pay for all your travel-related expenses. Individuals and families could consider taking up a personal loan to make traveling more affordable.
Such loans are easy to apply for with quick delivery times if you’re approved, making it ideal for people who’d like to travel at a moment’s notice.
Not all travel and holiday loans are equal. Before settling on a particular loan, here are loan terms to consider:
- Repayment terms – Depending on the lender and the loan amount, the repayment terms on travel and holiday loans can range from 12-60 months. You should consider how much time you require to repay the loan once you return from your travels. The longer the repayment time, the more the interest you’ll end up paying in the long run.
- Loan fees – Apart from interest, you may also have to pay fees with your holiday loan. This can include origination fees, prepayment penalties, and late fees. You should consider a loan’s annual percentage rate to know the total cost of borrowing.
- Interest rate – Just like other types of credit, if you have a high credit score, you’ll receive the most favourable interest rates. For a travel and holiday loan to be beneficial, the interest rate you pay on the debt should be less than other forms of credit, like credit cards.
A travel and holiday loan usually has a fixed interest rate, fixed monthly payment, and a set loan term. The lender typically offers a predictable repayment schedule, and the duration usually depends on the lender.
Banks, credit unions, and online lenders typically provide these loans. A lender will generally review your financial information, such as your credit score, debt to income ratio, and credit history, and you’ll likely receive lower interest rates if you have a high credit score.
What can Travel & Holiday Loans Pay For?
If you don’t have the funds to pay for your travels, a personal loan is an excellent option to consider. Such a loan would help foot the bill for various expenses you expect to incur while travelling or on holiday. A travel and holiday loan can help you pay for these expenses:
- Travel costs such as airfare, train fare, and so on.
- Food and personal care provisions.
- Accommodation expenses if you’ll be staying at hotels.
- Tours and other guided activities.
- Travel accessories.
- Gifts and decorations.
These are just part of the expenses a travel and holiday loan can help you pay for. The list is practically endless.
Advantages of Using a Personal Loan for Travel & Holiday
Some of the benefits of using a personal loan for travel include:
- Easy application – Applying for a weekend loan is relatively easy. Usually lenders provide an online service where you can apply for your loan and have it processed within a matter of hours.
- Quick processing times – Usually short-term loan applications such as weekend loans can be processed much faster than conventional personal loans. This means that you don’t have to wait long to receive your money. Just a matter of hours, and the money is deposited in your account.
- You can save interest by paying back early – For a medium to a large loan, you can generally repay it earlier with no penalty. The earlier you pay back the loan, the more interest you’ll save.
- Flexible repayment options – With Credit24 you can borrow up to $10,000 for a maximum of 36 months. You choose the loan amount and how long you want to pay it back. If you’re approved (within business hours), money could be transferred to your bank account on the same day (depending on your bank).
Make Your Dream Holiday a Reality
The holiday season and general travel can put a strain on your budget when it comes to expenses. Taking up a travel and holiday loan might just be what you require to make sure you have the holiday of your dreams.
If you’re unsure about financing the above, you’re in luck. Credit24 has loans up to $10,000 that could help fund your upcoming holiday and travel expenses.
Disclaimer: IPF Digital Australia Pty Ltd, trading as Credit24, ABN 59 130 894 405. Australian Credit Licence 422839. The information in this article is of general nature and does not take into consideration your objectives, financial situation or needs. Lending criteria, fees and charges apply. For more information about our products, eligibility criteria and terms and conditions, please visit www.credit24.com.au.