How to Get a Loan for a Vacation: Finance Relaxation
Work-life balance. Who wouldn’t want one? It means you work hard then travel hard. It means having fun after a few months of working. However, most working adults say they don’t have a travel budget. And if they will save for one, they are unsure as to when they can save enough! With this in mind – is it safe to get a loan for vacation?
If you don’t have enough money to finance your vacation, you can take out personal loan for a vacation or vacation loan. Either it is for a planned trip or for a last-minute decision. Before doing so, make sure that you set a budget based on your estimated cost to travel. Here are some tips to make your vacation more affordable.
Planning an Affordable Vacation
Before deciding to take out a vacation loan, check your wallet first. Then check your credit score. Decide on your budget. Write it down as early as you can. Here are some of the things you have to consider ahead of time.
Where to go?
Where are you planning to spend your vacation? When planning a place to visit, research the estimated cost. If you will travel to any US state, you will need at least $1,140 in your vacation travel finance budget per person. This price includes airfare, hotel, food, and activities.
If you will go known beach destinations, the estimated price is higher during the summer. In fact, most tourist destinations are expensive during summer.
When to go?
Go during off-peak season. The view is still the same. If it’s a beach place, it won’t be swarming with people. It is not too crowded. Taking selfies won’t be a problem. If it rains, it’s okay. It won’t rain all day unless there is a typhoon.
During off-peak season, hotel prices drop too. You can enjoy the same amenities, big rooms, and complimentary meals for half the price. As long as it doesn’t compromise your safety during your visit, you can always choose to go on vacation during the off-peak season.
Where to stay?
Back in the days, there were motels and hotels. Then some business-minded people decided on starting bed and breakfast accommodations. To date, a new type of accommodation has emerged. It is called Airbnb.
Vacation is about relaxation. It is about sipping a margarita while dipping in the pool. It is about having your breakfast prepared where the sun rises. Or having a good night sleep in that luxury bed. These are things that 4- and 5-star hotels offer. However, if you are taking a loan for a vacation, you have to stretch your budget. There is no need to stay on a -star hotel unless you are getting a huge discount.
Things to consider
Wherever you go for your summer destination, hotels are always available to accommodate you. As you take out a personal vacation loan for your travel, make sure to spend it wisely. Remember that you are going to pay it with interest. Here are some things that you can consider as you pick the best hotel to stay with.
Location dictates the price of a hotel. If it is in the center of the city or near where activities are, the price is higher. If it is a beachfront hotel, it can cost an arm and a leg.
Do not get swayed by location. If you have a car or your family or group loves walking, take it as an opportunity. Book a hotel that is a kilometer away from the beach and save on nightly rate. Walk towards the beach and enjoy the sceneries around you after.
Offseason or not, hotels always offer promotions. When looking for a place to stay, do your research. Search for promotions and discounted rates. You can save some from your loan for vacation trip if you can book a hotel with huge discounts.
Discounts are often offered with their tiered partners. Check your credit card if any hotels in your destination are tied up with them.
Ratings and reviews
Hotels with high ratings mean a higher price. But not all. Some come with great reviews while price remains affordable. Where you can find reviews and ratings?
Check from third-party review websites. Ask your friends who had been in the area for feedback.
Bed and breakfast or Inns
If you are to travel anywhere in the US, you will love their inns. They can help you maximize your loan for a vacation as it cost less as compared to hotels. Inns in the US are mostly easy to find, comfortable, clean, and are managed by the locals. Above it, they are a traveler -friendly.
Things to consider
When looking for a bed and breakfast or inn, you have to consider a few things. Not all inns are comfortable and clean. if you are traveling with your family, make sure to check these three things.
If you are traveling with kids, check if it is near grocery stores. Who knows what you might need. If you can find an inn near tourist spots, opt for it. if you are commuting, look for a place near terminals or bus stations.
Although you cannot find promotions online, you can check from local websites if a certain inn has a promotion. You might also get it from a friend. Inns often advertise their business through free social media sites like Facebook and Instagram. It is also worth checking.
Ratings and reviews
It might be difficult to find reviews for local inns. However, you can ask friends who might have visited your tourist destination. Their social media accounts might have reviews that you can check as well.
Airbnb is now getting popular. These are fully furnished homes offered to tourists and guests. Though the price is almost the same with hotels, AirBnB’s provide additional amenities like a real house.
To cut expenses as you just rely on your loan for a vacation, booking an AirBnB is advisable. You can just cook your meals instead of eating at restaurants. This is highly practical if you are traveling with a group.
Things to consider
Before booking an Airbnb, you should consider some factors such as the following:
Where is it located? Is it a condominium? Is it a rest house? A vacation house turned into an Airbnb? Is it kid friendly or elderly friendly? Would there be a parking lot for your car?
AirBnB’s can be booked via their website and app. Download their app on your phone to check the available homes in your destination. Sometimes, there are promotions up for grab as well such as discounts and free night (number of nights stayed required).
Ratings and reviews
AirBnB&’s are also rated by their customers. Before booking a particular place, you can check the reviews that their customers left. You can use the said reviews as a guide in choosing the best AirBnB that will suit your need and budget.
As you plan your affordable vacation, you have to make plans as well. Plan the number of days you will spend in a particular place. What tourist spots are you planning to see in the said city?
Make an itinerary. Make it flexible. With an itinerary, you can determine your budget. This will help you manage your vacation travel finance plans properly.
DIY or do-it-yourself is a type of itinerary where you plan your own trip. You follow your own timeline. Follow your time. You visit places you want. This is good if you are independent and you are confident with your map-reading skills.
With DIY, you have the freedom to choose and do what you want.
- Own your time
- Don’t have to follow a strict timeline
- Can do what you want
- Can see what you want
- You might miss some great tourist spots or activities
- It can get more expensive if you are not familiar with the place and your destinations
- Can be time-consuming
Before, it is hard to find a vacation companion. The internet has changed this. Social media posts have encouraged people to take vacations. Most people are now taking vacation travel loans to see the world. However, being with someone can make the trip more expensive. So why not go solo!
Going solo is good if you can handle solitude. If you are the type of person who loves silence, this is good. Going solo means you don’t have to worry about satisfying your companion. Traveling solo is just about being happy and relax.
Invite friends or in group
If you cannot travel alone but want a cheaper vacation, invite your friends or family. You can split the price then. With a bigger number, the price can get cheaper as well. Imagine if you are renting a boat for island hopping on your own for $1000 versus dividing it into 10!
There are pros and cons of being in a group. The best advantage is being able to save. If you don’t have to spend much on vacation, then taking a small vacation travel loan may be all you need.
Join groups from travel companies
The travel industry is booming. There are now different companies that offer group travels. These groups can be found online and thru social media.
These travel companies provide an itinerary, transportation, food, and accommodation for a cheap price. You will be joining a group of other 10 or 20 individuals that don’t know each other as well. Aside from having a cheap vacation, you will get to know a lot of new friends if you do this.
Vacation Travel Loan with Bad Credit
Should you take out a vacation loan if you have a bad credit score? Of course, it is possible. The only problem is if you will take it from banks. Banks might not approve a bank loan if you have a low credit score.
Vacation loans are like personal loans. You have to pay it with interest. If you want a travel loan with bad credit, your options when it comes to a loan for a vacation can be limited. You might be able to get loans from the following:
Online lenders like companies that offer payday loans and fast cash loans are one route, but be careful of the cost. They don’t check the credit score and don’t care about it. They will ask for a few requirements.
The only issue that you might find with online lenders is the interest. They often have high-interest rates as compared to banks. If you will take a loan from them, make sure to use it wisely during your vacation trip.
Personal installment loans with good credit is a much better option because the interest may be lower and you can pay it off over time. If you get approved, you may get funds for your vacation within 24 hours.
There are individuals who provide loans to their colleagues and friends. These people might ask for collateral or guarantor. If you have a guarantor, you can easily get the cash you need.
For this kind of vacation loan, you might find yourself facing a short payment term. Individual lenders often ask their customers to pay within 2-3 months. Before taking a loan for a vacation trip from them, make sure to check if you can afford to pay them in time.
Friends or relatives
If you are in need, who would you ask for help for? Families and friends would be our first thought. Vacation is an important part of our life. We need it to keep our balance. We need it to regenerate. If you have bad credit, you can take a loan from your family or friends.
You can show your gratitude by paying them in time and with the agreed interest. What is the best part of asking families or friends for a loan? Indeed, you can haggle with their terms. One thing though, make sure to pay as promised.
Using Credit Card to Finance a Vacation
Would it be a good idea to use a credit card as your loan for a vacation? The answer depends on what credit card you have and the perks that come with it.
According to studies, at least 30% of the world’s population is now using a plastic card in everything. They use it for their groceries, for paying bills, and for traveling. A credit card can be used to make hotel reservations, airline reservations, and activity reservations. With the availability of the internet, you can now do everything with your credit card.
When to use credit card for a vacation?
There are times when using your credit card for a vacation it may have some practical uses. Instead of taking a loan so you can purchase plane tickets, you may decide to use your card. You can also use your card to book your hotel or Airbnb accommodation. In addition, if you can find activities offered online like tickets for Disneyworld, you can also use your card to purchase it.
Paying your credit card debt
Before making purchases with your credit card, you should check with your bank first if there are promotions you can take. You can ask for promotions or offers to make your payment scheme lighter.
Once your debt is consolidated, you can talk with your bank to arrange a payment scheme for you. If a balance installment plan is available, take it. For credit cards, balance installment plan has an interest rate of .50% to .99% per month. Some have higher rates, so it is best to check with your bank first before using your credit card.
If you have multiple credit cards, use one card only. Purchase everything that you need for your vacation. Once you are done, call your other credit card provider and request a balance transfer. Balance transfer also offers low-interest payment schemes. Instead of taking out a personal loan for a vacation from, your credit card can save you from bigger interest rates.
0% installment offers
There are credit card companies that offer 0% installment plan to their customers. After making a purchase, you can contact the bank to convert your current purchase to installment. Some might add a minimal fee for this process. As compared to taking out a vacation travel loan, the processing fee for conversion might still be smaller.
Everyone needs a vacation from time to time. If you don’t have the budget now, one option is to take out a vacation loan. Don’t wait for your body to get burn out. Taking a loan for a vacation is better than feeling sorry for the things that you missed because you avoided traveling. If you are having issues with your credit score, ask for help. Creditry.com can help you manage your finances, debts, and current financial circumstances when you review your credit history. With their help, you may be able to improve your credit score in time so you can take a loan for a vacation with more reasonable finance cost.
About the Author – Kimberly H
Ethan founded OfferEDGE in Dec 2013 with the mission to unify the financial quadrants through a system that allows businesses to be seen when consumers use a Single Sign On across Lending, Credit, Money and Real Estate. Taub invents the offers and IP, while overseeing all aspects of the company. He also has orchestrated the company’s earned media across the brands Loanry®, Cashry®, Debtry®, Budgetry®, Billry®, Taxry® and more. This includes over 500 publications that have been featured across the web.