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Holiday and Vacation Loans
Taking a vacation at least three times a year is very necessary for everyone’s life. Sometimes you have the chance to go on vacation but you don’t have the resources for it.
You can take holiday and vacation loans to help you go on your vacation and have a good time as well as relax. After vacations, most employees come back to work relaxed and refreshed for the task ahead.
Working for a very long time with no vacation slows your productivity and employees turn to make mistakes at work because of the stress associated with working for a long period with no break.
Canadians typically go on vacations during the summer holidays and during the Christmas holidays because that is the time families and friends can take some time off work.
Unfortunately, these are the times that plane tickets, hotels etc. are more expensive because of the anticipated traffic to these hotels and flights. The best thing to do is to book your vacation in advance so that you can get cheap fares and also cheap hotel rates.
When you do this in advance, you sometimes end up paying without applying for holiday and vacation loans. There has been an upsurge of companies who give such loans because of the increasing demand for holiday and vacation loans.
Companies that give holiday and vacation loans
More companies are venturing into holiday and vacation loans due to the increase in inquiries for such loans. These companies give you a loan to take care of all your expenses, hotel, flight, food, touring etc. You then pay back the loan over a period of time.
Out of excitement of getting the money to finance your vacation, most borrowers who go in for holiday and vacation loans don’t read through the terms and conditions properly.
Its only after the holidays and fun is over that you realize the monthly installments are much higher than what you thought they were. Interest rates on holiday and vacation loans are high. Also, they do have charges and fees attached to them that makes the repayment very high.
However, with that said there are some companies that give holiday and vacation loans at relatively low-interest rates so you will have to do a thorough search to find them. You can get a holiday or vacation loan sometimes on the low side such as nine percent and also can find a holiday loan as high as thirty percent.
So make sure you search thoroughly online for the cheapest rates so that you can go on your vacation and enjoy yourself. Rather than being on vacation and thinking of the debt you have to pay.
Being saddled with all this debt can be avoided if you plan your holidays way ahead of time so you can save towards it and really enjoy your trip.
Holiday and vacation loans: what to look out for
Ideally, when you decide to go on a vacation by yourself or with your family and friends you should be able to afford it, but that is not the situation. About seven out of ten people will not be able to afford a vacation unless they borrow to be able to do so.
Before you decide on taking holiday and vacation loans, there are a few things to consider in order to make the best out of the situation.
Interest rate charges
Each lender who gives holiday and vacation loans give it at different interest rates. Having a good credit history helps a lot if you need a holiday loan because lenders are comfortable giving you the loan, knowing you will pay back without defaulting.
Having a Bad credit history will mean you will be borrowing at a very interest rate and for a vacation, that is not advisable.
Terms and loan amount
Every lender has the minimum loan amount they give to borrowers. Before you agree to a lender, make sure you know what their minimum amount is. Since the loan is mainly for your vacation, you just need just the right amount to make you enjoy your holiday and pay for all the necessities such as hotel bills, flight fares etc.
Taking more than you need for your vacation means you will have more to pay back as well as longer loan term. Do not settle for a lender who is rigid with their repayment terms. The loan is for your vacation and coming back to rigid payments terms will not be the best option.
You can get a holiday and vacation loans that have a longer repayment schedule but taking that option makes you pay more at the end of the loan.
Holiday and vacation loans: what to look out for (continued)
Fees and charges
If you are late with your payments most of the lenders will charge some fees for late payments. Sometimes paying back the loan earlier than arranged attracts charges from some lenders. Check all of these before you decide to take holiday and vacation loans from a lender.
Features peculiar to some lenders
Some lenders use incentives to lure clients/customers to their websites. These features are not the usual but tactics the lenders come up with to get more clients. An example is that lenders prefer automatic payments so if you sign up for that, they can reduce your interest rate a bit as an incentive. To avoid over borrowing for your vacation, follow these guidelines
A vacation budget must be set
Knowing how much your vacation will cost helps you to budget and also borrow accordingly. Not knowing how much you will spend at your vacation, will make you borrow more or even less and you would not want that.
Check with the flight cost, hotel rates, food, and all other expenses you know you will incur. When on vacation it is easy to overspend or engage in activities you didn’t plan for making you spend more when you didn’t add to your budget.
To avoid that, make sure you stick to your budget and avoid all unnecessary expenditure. Especially since you are borrowing for the trip, there will be no point overspending.
Choose cheaper holiday destinations
Holidays or vacations are for relaxations and resting mainly. This you can do that at home. However, if you want a change of environment, you can easily go on vacation to holiday destinations that are not that expensive.
Going to expensive holiday destinations means you will have to borrow more to be able to take care of all the necessary things for the holiday. It will be in your best interest to look into package tours that have accommodation, food, and transportation all included.
This can help you save money as well as get most of the necessities of the vacation handled so you don’t stress yourself with that. If you need to have a very lavish vacation, don’t borrow to incur more debt. Wait till you are comfortable enough to be able to afford it.
At least have a bit of saving for the trip
When you plan to go on a vacation, make sure you do have a bit of saving to help you enjoy your trip. Do not borrow a lot of money to cover your whole trip. At least have a bit of saving that will take care of things such as food, touring, souvenirs etc.
Getting a holiday and vacation loans should cater for the major expenses such as your flight and your hotel accommodation.
Selecting the appropriate vacation loan
Saving to cater for your vacation is the best way to because after your holidays you will have any debt waiting for you. However, if you have tried saving but it has not worked for you, there is another way to finance your vacation and that is by taking holiday and vacation loans.
This has been tried and tested by many and it has worked for them so you can try it as well, just know you will have a debt to settle afterward. Now choosing the best kind of lender for your holiday and vacation loans is another very important factor because it has an impact on how much you pay for the loan.
Traditional lenders will not call the loan they give to your holiday or vacation loans but rather private loans and since private loans can be used for anything the borrowers deems fit, the traditional lenders will leave the use of the private loan to you.
Private lenders, however, do call some of the private loans they give to borrowers holiday and vacation loans. This is to entice more borrowers to such loans. It is important to select the best holiday and vacations loans that will meet all your holiday needs as well as cheap.
So do ‘shop; around online until you are convinced a lender is offering the loan that you are looking for. There are some lenders that have all their details on their website so you can read and know if they are what you want.
With others, you may have to enter some basic information to be able to see all their details and requirements. Don’t worry about a hard credit check being done on your credit report. The checks these lenders do on your credit report is s soft credit check and this will not affect your credit score.
Red flags to look out for in holiday and vacation loans
It is easy to find the right kind of loan for your vacation if you do the right research and pay attention to all the little details on a lenders website. If you make the right choice, you will be able to pay back the loan and then start planning your next trip and if you need help from that lender it will be easy to get it the next time.
Not putting a lid on your borrowing can cost you your next trip because you will have so much to pay back that it will take a while to pay back the loan. Staying cautious helps you have an affordable vacation with regards to the lender you choose and the loan terms and conditions.
Unfortunately, there are things you can ignore that will make your vacation very expensive and also less enjoyable because you know you have a debt waiting for you. You must be cautious and look out for red flags in your search for a loan that will best suit your vacation needs.
Scanning the contract for the loan
The contract of a loan is a very important document that you need to give a lot of attention to when looking for a loan. This is because the loan contract has all the terms and conditions, charges, fees as well as interest rates and loan repayment is stated.
Brushing through the loan contract means you will miss out on some important information associated with the loan you are taking. An example is default charges or fees etc.
High priced repayment amounts
Some of the loan repayment amounts are so high you know immediately you cannot afford it. Move on to the next lender because what is the point of borrowing money for a vacation and coming back to sweat in repaying back the loan.
Holiday and vacation loans are to make it easy for you to enjoy your vacations, and not to put you in a state of uneasiness. Borrow wisely to avoid unnecessary stress.
Be careful of your credit card use
It is easy to overspend on your credit card. Make a conscious effort not to. The temptation is there but overspending will mean you will pay back with very high-interest rates
A holiday loan and what to expect
Not having cash at hand to pay for your vacation can be frustrating especially when the time for the vacation is near. Fortunately, there is a way to finance your vacation and it is by taking holiday and vacation loans.
Having a bad credit history will make it very difficult to get a loan for your vacation. Because lenders will find it very risky lending you money to go have fun. In as much as lenders will not be willing to give you credit, it is not wise to take a loan for vacation because you already may have other loans you might be servicing.
On the other hand, if your credit history is good, you are already a step ahead of getting a holiday and vacation loan if you so desire. You know yourself better than anyone does, so be sure you really need a vacation at a particular time before you begin a search of lenders who give loans for vacations.
Everyone prefers to go on vacation and being able to pay for all the expenses that come with the vacation but unfortunately, that is not the situation for everyone. Sometimes the only way you can afford to go on a vacation is to borrow or cancel any vacation plans.
Choosing a lender to give you holiday and vacation loans, you must look out for these things which will influence how much you will pay for the loan.
• Charges and fees
• Interest rates
• Terms and conditions
• Loan amount
• Added features
Pros and cons of taking holiday and vacation loans
• Planning for a vacation can take years especially if you want to go on a vacation of your choice. A holiday and vacation loan will just take all the stress away and give you enough to go on your vacation and have all the fun you have been yearning for.
• It is more convenient to take a small loan so you don’t overspend on your trip. Keep your credit card handy for just in case, but try as much as possible to spend within the budget.
• With a good credit, it will be very easy to get a vacation loan to cater for your vacation expenses.
• Applying for holiday and vacation loans is fast and easy and processing time even faster for those with good credit.
• Saving the whole year for a vacation sounds like the appropriate thing to do but its possible your savings will not be enough for your vacation trip. Do not worry, you can take holiday and vacation loans to add up to what you have to make up for the expenses.
• You do not need collateral to get a loan for a vacation loan. So holiday and vacation loans can also be termed as unsecured loans.
• One good thing about vacation loans is that you do not have to pay back the full amount at a go but in bits, till you pay off the loan. This makes it possible to pay off the loan gradually without getting stressed over payment like pay day loans.
• As a borrower, a good credit history can get you a lower interest rate for a holiday loan. Very convenient isn’t it?
• Most unsecured loans like holiday and vacation loans have a high-interest rate as compared to secured loans
• There is no vacation loan that is interest-free so do not be deceived if you see a lender online claiming the loan does not have any interest on it.
• Most of the minimum amounts given by lenders for holiday loans are high and this may be out of your budget. Make sure to borrow as little as possible just to be able to fund your vacation.
• Origination fees are charged by some vacation loan lenders.
Holiday and vacation loans. Is it necessary ?
Holidays are times of the year that we get to relax and rest and stay away from work and anything stressful. Taking a vacation is very necessary and must be taken as seriously as we will take an important milestone in our lives. If we do not take time off work to relax and rest we can easily break down from exhaustion or fall ill.
We definitely do not want this to happen to us or anybody we know or are close to us. Going on a vacation, however, cost money and much be planned well so that we do not go and run out of cash or overspend.
If you can afford to take a vacation without borrowing money then even better, but if you cannot afford to then you can take a loan to help you go on vacation to relax. Truth be told taking a holiday loan is not the best decision, however, if the pros outweigh the cons for you then you can go ahead with it.
Finding the right lender for a vacation loan is also helps to make the loan taken worth it. Browse around different lender sites to get the best loan option that suits you best. Compare the interest rates as well as other fees that come with the loan because all adds up to the amount you are supposed to pay as repayment amount.
Since vacations are times to enjoy yourself and have fun, you need to make the right moves so that after your vacation you don’t have a huge pile of debt waiting for you back home. You can have your credit card with you to use when there is an emergency. But make sure you do not go over the credit limit.
Going over the credit card will bring more stress to you considering how high the interest rates on credit cards are. Anyone can qualify for holidays and vacation loans, but you must have a good credit history to be able to get a loan with a considerably lower interest rate.
If you have a bad credit history you may be able to get a vacation loan from some lenders but at a high-interest rate. Will it be wise to pay a very high-interest rate on a loan you are taking to go on vacation, that is a question you must ask yourself.
Disclaimer: All loans offered through this website are subject to credit and underwriting approval. AfterLoans.ca is a lead referral company, not a lender. AfterLoans only works with financial service providers that adhere to Canadian laws and regulations. Our lenders lend from $500-$5,000. Loans amortization is between 6-36 months. APRs range from 19.99% to 55%. The actual APR charged will depend on the lender’s assessment of your credit profile. For example, on a $1000 loan borrowed for 12 months at 29.9%, the monthly payment will be $97.24; with a total repayment, including interest, of $1166.88 There is also lender’s optional loan protection policy. In the event of a missed payment an insufficient funds fee of around 45$ may be charged (dependent on the lender). If you default on your loan payment plan the lender may terminate the plan and the remaining balance will become payable immediately. Our lenders employ fair debt collection practices, but will pursue the payment of Outstanding debts to the full extent that Canadian law allows.