What is a holiday loan?
A holiday loan is an unsecured personal loan with a fixed interest rate to help spread the cost of a trip over time. Factors such as how much you’ll borrow, for how long, and how much you’ll repay each time will determine the exact terms of the loan you choose.
You can often choose the exact amount you want to borrow (down to the dollar) and how long you want the repayment period to take, usually from 12 to 120 months.
It is worth planning the costs of your trip in advance, and once you know how much cash you will need you can start the process of securing the right holiday loan for you.
Where to get a holiday loan?
These days there are many private lenders available to seek out a holiday loan. A loan agency is a lender that is able to authorize funding to borrowers under a specified contract.
A loan agency has the ability to determine if a borrower is eligible for a loan, and how much money they are willing to lend for the holiday loan. Once a loan has been approved the two parties sign a contract, with pre-determined loan repayment terms and a fixed interest rate
While there is often a list of requirements to be met before a loan can be approved by an agency, it is often easier and faster to be approved than you think. For many Canadians it is a great option to enable that dream trip.];[[
What to look for in a holiday loan?
When searching for a holiday loan that meets your needs, it is crucial to do your due diligence. Like with any financial matters, there can be scammers out to steal your financial information or money. To avoid this, here are some important factors to look for:
How to apply for a holiday loan?
Once you decide to seek out a holiday loan, here is how to secure your cash quickly and safely:
What if my credit is bad?
If you have been previously denied a loan from a bank or an agency because of bad credit, you may believe that you are not eligible for a short term personal holiday loan.
This is not necessarily true as there are many agencies that specialize in low or no credit lending. While your credit score will likely still be checked as a formality, it is very possible to be approved for a loan from an agency, even with bad credit.
Some of the best moments in life are spent with family and loved ones on holiday. If money is tight and it doesn’t look like you will be able to afford a dream trip any time soon, a holiday loan may be right for you.
By researching the right loan and lender, you will be able to make memories on holiday sooner rather than later. Like with all financial matters proper planning is important, but many Canadians are taking advantage of the freedom that a holiday loan can provide.