Personal Loans for Holidays

If there’s a dream holiday of yours on the horizon, but you can’t quite find the funds to book the flights and a hotel, you’ve probably considered some form of holiday finance to help you pay for it all.

As with many other types of loan in the burgeoning UK credit market, there are options galore when it comes to finding a loan to finance your summertime getaway. With the average price of a holiday for a family of four costing over £1,200, a financial helping hand is becoming more and more popular.

On this page, we’ll run through the pros and cons of this type of loan, and lay out the available options so that you can move forward with confidence.

How much can I borrow for a holiday?

Holiday loans tend to be anything up to £15,000 – so from a week away somewhere to a round the world trip, there’s enough flexibility there for any kind of getaway. Some mainstream lenders even offer loans up to £50,000, so it’s best to shop around if you need a large sum of money for a luxury or long-term holiday.

Taking out a personal loan for holiday purposes can be a viable option for those without the cash to pay up-front, as these can come with lower interest rates than that of loans specifically tailored for holiday purposes.

Pros of holiday loans

The immediate benefit of a holiday loan is that it can finance a trip you might not have been able to afford otherwise. This can be life-changing for many people, but don’t let it cloud your perception of the terms and conditions of the loans available.

Fixed repayments make it easy to budget for this type of loan, and remember: a shorter repayment time equals a cheaper loan overall.

Cons of holiday loans

A holiday loan can, perhaps unfairly, be seen as an impulsive borrowing decision, and this may lead to you being served an above-average interest rate if you have a bad credit score.

A holiday loan can, perhaps unfairly, be seen as an impulsive borrowing decision, and this may lead to you being served an above-average interest rate if you have a bad credit score.

Loans are always a calculated risk, so make sure that you’ve fully understood your repayment plan (as getting into repayment trouble could be highly detrimental to your credit score) – and make sure you’ve shopped around for the best holiday loans online before making your decision. Where possible, it’s always best to pay for your holidays using savings to avoid this.

Are holiday loans for bad credit available?

While having bad credit certainly won’t help you secure the best holiday loan deal, there are a few avenues you can explore.

Firstly, you could explore the marketplace and compare various lenders, as some are willing to look at each case individually rather than engaging in a blanket refusal. Our page on bad credit loans offers a full run-through of the options available to applicants with a less than perfect credit history.

Of course, if you successfully repay a holiday loan (or any kind of personal loan), that can have a positive impact on your credit score – so loans such as this can be seen as a positive opportunity to repair your credit rating in the long term.

For advice on holiday finance as well as a range of financial news and practical tips, why not visit our blog today?