Vacation Loan: To spend a dream vacation once in a lifetime, many people dream of it. But often this is missing the necessary change. But a holiday can now be easily financed by a holiday loan. However, in order for the dream vacation to become a long-term burden, not just high monthly costs, some things should be considered before borrowing. Our comparison shows the most important conditions at a glance, more information on banks, interest, financing, etc. can be found at the bottom of the page.
To finance a holiday with the help of an installment loan
A installment loan can be applied for almost any purchase. So also for the investment in a dream vacation. Here, as with a classic microcredit, a credit-based interest rate determination is carried out. However, as a customer, you should make sure that the interest rate corresponds to the current interest rate level. In addition, the monthly repayment agreement should be adjusted to the financial circumstances, so that a loan repayment is possible at any time. So the holiday loan is not a problem even after the trip and you can enjoy the trip carefree.
Credit for vacation | Pay attention to the term and interest
Vacation on credit – a good idea? When borrowing the following rule of thumb applies: The repayment term should not be longer than the average life of the acquisition object. For example, a TV, which works on average for about five years, should not be financed for ten years. This is a bit different when it comes to vacation funding. Since a vacation usually only takes a few weeks, the loan must of course be repaid over a longer period. But here too, care should be taken that a holiday loan can be repaid as quickly as possible. We recommend a duration of twelve months. Since it can then come back to a new vacation financing, should be repaid by then the old loan.
Another important point in the holiday loan are of course the interest rates. However, as we are currently in a period of low interest rates, banks’ offers for a travel loan and other loans are currently at very reasonable rates. From this perspective, nothing stands in the way of the vacation loan.
A holiday loan can also be financed by credit card
If you do not want to take out a small loan for holiday financing right away, you also have the option of financing your vacation on credit card credit. Many tour operators now offer payment by credit card. If the customer makes use of this, the tour operator receives his money immediately with the booking. However, the customer himself agrees with his credit card company a repayment agreement on favorable terms, so that it is also a borrowing. However, this type of financing only makes sense if alternative small loans are more expensive to buy.
For vacation credit record – Not a good option for everyone
Despite low interest rates and favorable rates – one should still worry before you take a loan for the holiday. Those who already have problems with the Schufa or have no reserves and thus, in case of unexpected expenses could get into a financial distress, should give up a loan for the holiday. In this case, you should rather opt for a cheap trip in the area and better save even more, until you start the dream trip.
Why wait a long time for a dream vacation when the solution is at hand?
Anyone who has always dreamed of a holiday in exotic places, should not wait any longer and book his holiday. With the many options for a vacation loan long-cherished wishes can be made true and no longer be put off the back burner. The interest rates are particularly low at the moment, whereby a cheap financing of the trip at reasonable rates is possible at many banks. Life is far too short to wait until old age to fulfill a lifelong dream. Fill out the loan application, enter a financing request and receive the money for the next holiday within a few days. With the right financial partner, this is straightforward and easy for everyone.
Credit for vacation | What to look for in the travel loan?
There are some important points that make the trip credit decide how well the conditions are in the end. These include, among others, these points:
As indicated above, the term is important when it comes to getting good conditions. You have to find a balance that guarantees the one hand the easy repayment of installments and on the other hand a not too long-lasting burden even after the trip.
The credit rating
As with any loan application, the creditworthiness of the applicant is crucial as far as the ultimate credit terms are concerned. Only those who have a stable income and preferably no debt will be able to secure really good credit conditions.
In any case, you should apply for the loan in good time and rather assume that the payment takes longer than expected. After all, you do not want to be behind afterwards without the necessary money for holiday financing.
The loan amount
Of course you should also think about the loan amount before making a loan request and be sure that you do not fall into financial difficulties. This is not worth the best dream vacation.