If your dream of a holiday is still out of reach, a holiday loan could be the answer. Taking out this unsecured loan allows you to take the holiday of a lifetime, get away for a much needed break, visit family abroad or attend an overseas wedding, paying for it at a later date.

What is a holiday loan?

This is an unsecured loan that is used to fund a holiday.

How much can I borrow?

As with any loan, your credit score will be assessed to determine the amount you can borrow.

Are the repayment terms fixed?

Your holiday loan can be arranged to suit your personal circumstances. You may choose to repay the loan quickly over a short period of time, or choose a longer term so that the monthly repayments will be less. Don’t forget that although longer-term agreements benefit from lower monthly interest rates, the total amount of interest paid overall will be higher.

Is a holiday loan a better option than paying for the holiday with a credit card?

The interest rates associated with a holiday loan are usually far less than a credit card. Holiday loans are also easier to manage thanks to their fixed term and fixed interest rates.

Shop around

Before choosing your holiday loan, make sure that you shop around for the best deal to suit your individual circumstances. Price comparison sites can be a good starting point, but bear in mind that most lenders use these sites to advertise only their best deals, which are usually reserved for those with an excellent credit score. Conversely, holiday loans aimed at those with poor credit rating can come at a high cost. Whatever deal you choose, keep it affordable as you will have to repay this even after the suntan has faded!

And finally…

Before you jet off, don’t forget to check that your passport is in date and that you have bought travel insurance. It is always a good idea to leave details of your trip with friends and family back home in case they need to reach you.

Keep your valuable such as cash, traveller’s cheques, tickets and passports safely locked away and last, but not least, enjoy your holiday!