What is a Holiday Loan?
It is a personal loan that a
borrower may take out to cover the expenses of a holiday. This credit product may prove to be
beneficial when you do not have sufficient funds for a trip. It may be used for domestic as well
as abroad travelling. A borrower taking out a holiday loan must repay the amount within the
agreed period to avoid any damage to their credit score.
These are unsecured loans and hence, do not require any collateral to be involved in the lending
process. This loan has to be repaid within a year or less as it is a high-cost short-term
credit. It enables the borrower to spread the cost of the entire trip into affordable monthly
payments.
Advantages of an Online Holiday Loan in the UK
There are many benefits of availing an online holiday loan in the UK and that is
the reason most of us opt for one to make a trip to our dream
destination. A few of the benefits that one can have are listed below:
- Fixed Repayments
This helps a borrower to manage their personal finances as they get to know how much amount
they have to pay towards the repayment of the loan taken. Being able to budget your monthly
expenses will help you in maintaining equilibrium.
- Spending Freedom
The loan doesn’t limit you to spend it for any or a few particular expenses. You have
the freedom to use it the way you want. You may use the money to book your air tickets, to
book accommodation, or you can use the money to pay for the expenses of your food and
drinks. It completely depends on you.
- Flexible Tenure
The maximum period of the loan is for a year. A borrower must repay the amount within a
year. However, you may choose the period of repayment. You have the authority to choose a
repayment tenure to spread the cost of your holiday. Remember, if you decide to pay it off
in a shorter period, it will prove to be beneficial as you’ll likely to pay less
amount in terms of interest.
Online Holiday Loans for Bad Credit Score
A credit score undoubtedly holds paramount importance as it helps lenders to make their decision
regarding lending. Oyster Loan deals with regulated lenders who operate across the UK and
don’t consider credit score to be the only factor for the approval of the loan. The
lenders assess the current repayment affordability and financial abilities of a borrower before
giving their final approval. They provide a soft quote for unsecured loans as
soft credit checks don’t impact the credit scores.
How to Apply for an Unsecured Holiday Loan in the UK?
With Oyster Loan, it becomes convenient and easier to apply for an unsecured holiday loan
in the UK. There are a few basic eligibility criteria that a borrower must meet in
order to avail a short-term
loan. The borrower must be 18 or above and must have a valid and functional bank
account. The borrower also needs to be a citizen of the United Kingdom.
Apply for a Holiday Loan in 3 easy steps and make that trip to your dream destination:
- Start your application
Fill in the application form with all the mandatory details to be accepted for a loan and
then submit the form by clicking on the submit button.
- Get a decision
This may take a few minutes. The lenders will run a few checks to verify the information
provided by you and then their decision will be displayed on the screen.
- Receive funds
Once your application has been accepted by the lender, the loan amount will be disbursed to
your account by the lender. The period of loan disbursal depend on the lender and it may
vary from one lender to another.
You may opt for a holiday loan online on any laptop or you can also apply from
your phone.
Holiday Loan Alternatives in the UK
Most of the time, we look for alternatives that may work for our situation. If you’re
looking for holiday loan alternatives, then we’ve listed down a few of the options that
you may choose to go ahead with:
- Credit cards
A credit card is a good way to fund your dream vacation but you have to repay the whole
amount that you’ve spent on your next payment date. Moreover, it doesn’t give
access to cash for your expenses. If you withdraw cash using your credit card, you may have
to pay an extra fee for withdrawal and if you’re vacationing abroad, you have to pay
additional fees for the card usage.
- Savings
If you are a globetrotter, you may know how to
budget and save for your next trip. However, this is not the case with most of us.
We may save for a holiday but in the end, there might be a need for extra funds for a few
things. Savings alone cannot help you plan a joyful vacation.
Take Out a Holiday Loan – With Oyster Loan
Oyster Loan is an FCA registered loan broker that operates across all the major cities of the UK.
And it deals with FCA registered lenders – which ensures transparency and fair practices. The
lenders associated with it offers a soft quote that means a soft credit check is performed by
them prior to loan approval. Borrowers can avail any short-term loan or personal loan to treat
their financial emergencies without damaging their credit score.
Stick to the borrowing terms to promote responsible borrowing. If you fail to repay the loan
amount, it may cause severe damage to your credit score. Always borrow what you can afford to
repay and provide undivided attention to budgeting as that will help you stay financially secure
and stable.