Holiday Loans: the pros and cons of paying your holiday off in instalments
Holiday loans can be a manageable way to fund your dream holiday, a quick getaway or a well-earned family vacation.
Maybe you’ve seen a great deal to your dream location, but you don’t have quite enough in your savings to pay for it.
Or perhaps you’ve been invited to your friend’s wedding on the other side of the world, but would rather pay it off slowly over the course of years rather than in one lump payment.
It might even be that you’re the one getting married, but you’ve used all of your wedding budget on the big day. Now you’re looking for an affordable way to pay for the perfect honeymoon for you and your partner.
Whatever your situation, if you’re thinking of planning a well-earned trip away but are not sure how to fund it – you’re in luck. Holiday loans have been designed to help you manage your money and spread the cost of your trip into easier repayments.
However, before you start imagining the feeling of sand between the toes and a cool glass of margarita in your hands, it’s important to make sure you know all of the pros and cons.
Disadvantages of holiday loans
If you have a poor credit score or no repayment history – it can often be difficult to find a company that is willing to lend you the money at a reasonable rate.
However, it’s not impossible – guarantor loans are becoming a very popular way for people with poor credit scores to borrow money quickly, pack their flip-flops and jump on a plane.
If you’re only looking to borrow a small amount of money – perhaps you’ve seen some cheap flights for next summer or need that last bit of money to top up your savings – it might be worth considering getting a credit card to avoid the interest and APR of a loan.
Many companies offer a 0% introductory offer, which is perfect for occasions when you just need to borrow a little bit to be able to afford your holiday and know that you’ll be able to pay it back quickly. 0% credit cards – if you pay your balance off within the allotted period – can end up costing you no extra charges at all. However, the interest rates can get very expensive if you don’t settle the balance before the 0% rate ends, so be careful.
Advantages of holiday loans
However, if you’re looking to borrow larger sums of money to fund your dream trip - holiday loans can be a great, affordable alternative. Your payments are fixed, which makes it much easier to budget and know how much you’ll be paying back and when. On top of that, you can choose how long you’d like to take to pay it off.
These loans have been designed to flex and adapt to your needs, because the last thing you want when you’re sunbathing, skiing or climbing a mountain is to be worrying about your repayments.
Plus, it’s not uncommon for companies to offer a payment holiday on holiday loans. (Although it’s called a holiday, it’s not quite as exciting as jetting off for a few weeks in the sun.)
These payment holidays can be incredibly helpful, allowing you to delay payments for few months, so that you don’t have to start paying your holiday off until well after you return – perfect for staving off those post-holiday blues.
Bamboo offers a number of fast and affordable options to help you fund that once-in-a-lifetime trip or family holiday, regardless of your credit score. Get an instant quote today to see how much you could borrow, and you could be by the pool, topping up your tan before you know it.
Author
The Bamboo Team
Posted
27 June 2016