If you haven’t got enough money for vacation for certain reasons or to buy a trip package for your own savings, then an excellent option in such a situation would be a holiday loan.
What documents do I need to apply for a holiday loan?
If the borrower needs a small loan amount, then mostly banks ask for an ID. A bank representative will review the ID data and issue a loan, in case of a perfect or average credit history of the client.
If a trip requires a large amount – more than several thousand dollars, then in addition to an ID, you will need one more document: a driver’s license, SSN.
Some travel companies can offer clients an installment plan. Most often this is within the framework of loyalty programs for regular customers.
With this method of issuing a loan for holidays, trip packages are transferred to the client with a deferred final payment. The voucher can be used after the first installment. Such a holiday loan from Payday Loan Lafayette LA will cost much less than a standard loan for a vacation, since the percentage of overpayment is lower, but much less time is given for the full payment of the trip package.
Should I take out a loan for a vacation?
There are two opinions:
- such loans are harmful – money is spent, two weeks of rest and a year to extinguish payments is a questionable pleasure.
- a good rest – makes it possible to restart thinking, find growth points, increase income – this is an investment in yourself. And if you work for a long time without rest, something needs to be changed.
The main advantage of a holiday loan is timeliness. An unexpected weekend, unplanned expenses, then a loan is exactly what is required. Rest today and pay tomorrow, what could be better? There is no need to scrupulously postpone for the tour and chase inflation, it is enough to find your loan, the one that suits you. However, experts advise to refrain from such borrowings, blaming the fact that vacation is not the most necessary, especially if there is a lack in funds.
A targeted loan, to which a vacation loan belongs, has one point, which can be attributed to both positive and negative sides. Funds cannot be used for purposes other than those specified in the agreement. And if this is a cash loan, then the disrupted plans can be compensated by simply returning the funds to the lender, paying small interest and commissions. But, as most often happens, the money is transferred directly to the seller (tour operator) and if there is no travel cancellation insurance, then you will have to say goodbye to them.
Vacation loans have interest rates different from loans for unspecified needs. As a rule, they are lower by 5-7 percentage points.
Most banks do offer standard consumer loans.