If you are looking for a holiday loan in the UK, you probably know that this is money to be borrowed to go on holiday to a destination of your choice. Based on your credit score, you may be required to offer collateral to secure the loan, but most often, you will be approved for an unsecured loan. Keep in mind that most financial establishments reserve holiday loans for their best clients.
Before you shop for holiday loans, you should think of the amount of money you need for your holiday. Clients with an excellent credit score can borrow in the range of £5,000 to £50,000. If you need a large amount of money, you will be asked to provide collateral.
You may want to look for holiday loans in September or January if you want to pay off your credit card debt, which is usually accrued in summer or during the holidays. Lenders in the UK offer this opportunity to clients as a debt consolidation loan each year.
You may also look for a holiday loan before the season starts. Many of the all-inclusive vacations and cruises require an advance payment. You can apply for a holiday loan to cover these expenses and then start repaying the loan so that you have it paid off in full. Then, you can apply for another holiday loan.
How to find a holiday loan in the UK? You can apply with various banks, companies, and other financial entities. Tesco Bank, for example, offers holiday loans for special occasions, such as birthdays, anniversaries, weddings, and other occasions clients find too important to miss. Loans are offered with affordable interest rates, and if you borrow between £7,500 and £14,999, you will repay at a low APR of 7.4 percent. Holiday loans are offered with a fixed interest rate, no hidden costs or set up fees, and an optional payment break (based on eligibility) at the start of the loan.
You can also apply for a holiday loan with financial companies offering their products online. Want to Buy It is one such company that offers holiday loans for city breaks, winter sun breaks, a golfing or Christmas holiday, snowboarding or skiing trips, and so on. Customers who apply for holiday financing may receive a decision in just 24 hours. Loans are offered with no upfront fees and an APR of 6.7 percent. The maximum age of qualifying applicants is 63 years, and the minimum age is 18 years. Valid email address and employment status should be presented.
If you’ve already found a deal, you may wonder how long it will take to repay your loan. In general, this type of loan is a short term one, and the term will be up to three years. Most borrowers aim to pay back the loan in one year or so, as this will allow them to go on vacation every year. For other borrowers, it is a once in a lifetime holiday, and they may want to repay the loan over a longer period. The most important thing to remember is that the longer the term of your holiday loan, the more you will pay in interest.