Travel Loans Bad Credit

There are various reasons each and every one of us desire to travel, but one thing in common is holding us back: the expenses!

Financing an international trip is a daunting task, especially if you’ve tried everything already, starting from taking two jobs at the same time and ending with searching for a deal on airfare, looking for a cheap hostel, and promising yourself to live on the lowest budget imaginable.

That’s when a travel loan comes into play. Whether you’re planning a once-in-a-lifetime trip, seeking a laid-back vacation in the Lower Keys, travelling for a medical emergency, or looking forward to reuniting with your loved ones after a long time, travel loans and equipment loans can help you bridge that funding gap.

Not even your bad score or the abundance of black marks in your credit report should stand in your way of setting sail on your next trip. So let’s delve into everything about this topic. 

What Are Travel Loans?

travel loans

A travel loan is a type of personal loan that guarantees you access to fast and secure funds. Like any personal loan, it can be one of three types of mortgage loans:

  • Secured loan: in which you borrow a certain amount of money and pledge an asset as collateral. This type always comes with lower interest rates and more convenient terms.
  • Unsecured consumer loan: in which you take out a loan without the need for submitting any collateral or security to get your application approved. However, in return, you’ll be required to pay back with higher interest rates. 
  • Short-term bad credit Christmas loan for unemployed: in which you take a certain amount of cash and pay it back by a due date that’s usually less than a year. In addition to the shorter repayment period, you’ll have to repay the debt on a daily or weekly basis, unlike the other two loan types where you can repay your debt in monthly instalments. 

You can seek any of the Christmas loans no credit check mentioned above from non-bank lenders. Each of them works with varying scores and has different terms and conditions. You can find the best online lender with terms that match your financial situation by simply shopping around. 

To get funeral loans low interest rate, you’ll have to provide certain information about yourself, including your name, address, income, and other personal data. The provider will go through this data and consider whether to approve or decline your request. 

Usually, a travel loan can be anything from $300 to $10,000. According to your plan, you’ll be obligated to pay it back from 3 to 24 months. 

Although there are restrictions on who can get a travel loan and how much they can get, there are no constraints on how to spend the borrowed money. 

The loan can cover anything, including your plane ticket, travel insurance and accommodation. 

However, you don’t have to pay only for the necessities. You can use the money to buy festival tickets, reserve restaurants, rent a car, book tours and activities in your destination. 

travel loan

If you’re going to take a loan anyway, don’t go small. Include everything you want to do, provided that you can still pay back the sum of the loan along with the additional expenses. 

Just plan your trip’s budget and include everything you need. If you find the expenses are getting out of hand to the point that it’ll be hard for you to repay the loan, start from the beginning and try lowering your costs. 

A good advice at this point is to try taking your loan a bit earlier than your travel date. This way, you can save costs by buying your plane ticket before the departure date gets closer and the flight prices soar. 

Travel Loans Bad Credit – Are They Feasible?

That’s the beauty of resorting to non-bank lenders; there’s always a bad credit loan option! You won’t be able to walk into a bank to get a travel loan with bad credit or computer loans, but with online lenders, it’s possible! 

It won’t be easy, but your chances aren’t low either since some lenders understand that your bad score can be the result of past mistakes that you don’t have to be held for now.

If your credit score is less than 650, you can still apply for a travel loan or cosmetic surgery loans no credit check. In this situation, the loan provider will request a read-only copy of your bank statement from any account with readily available funds, then base their decision on it rather than your credit report.

Your bank statement will provide them with a fuller picture of your financial profile. They’ll get information about whether you’re earning a consistent income, paying your bills on time and being responsible with your money in general. This will help them build trust that you’ll be able to repay furniture loans

Note that any discretionary expenditure in your recent statement will take away from your chance of getting the loan. So, it’ll be worth it to check your statement at least six months prior to applying for the loan to prune any unnecessary spendings from your report. 

travel loan bad credit

If you’re deemed financially responsible, you’ll be granted the travel loan but with higher interest rates than the standard. Of course, this means you’ll be repaying a larger sum, but you’ll still be getting the loan, which is a good point in itself.

Not to mention that this will help get your credit score back on track if you repay your debt in time. The opposite is also true, though. Taking a travel loan and failing to pay on time will only further hurt your credit. So, never rush into taking a travel loan with bad credit unless you’re 100% sure you’re playing it safe this time.

How Much Do Travel Loans Cost?

That depends on the lender you choose and the amount of money you’re going to borrow. When comparing the costs of different loans, you have to pay attention to two numbers: interest rate and comparison rate.

The interest rate, as you’ve guessed, is the amount of money you’ll be charged per year on the balance of your loan. On the other hand, the comparison rate is a broader term that combines the sum of the interest rate along with the additional fees you can expect to pay throughout the lifetime of your loan.

 

Generally, there are three options for travel loans:

Small Unsecured Loans

travel loans bad credit australia

This is the perfect choice if you’re looking for vet bill loans Australia to cover your plane ticket or short holiday. As the name indicates, this is an unsecured loan that you get without providing an asset. 

However, since there’s no collateral tied to your loan as security, you’re only allowed to borrow from $300 to $2000 and pay them back as monthly instalments over 12 months. The interest rate of this option ranges from 8% to 23%, while the comparison rate can be anything from 9% to 25%. 

Medium Secured Loans

Medium secured loans are larger loans in which you can borrow an amount of cash that ranges from $2100 to $4600 and repay it over a more extended period. The repayment terms can be as short as 13 months or extend to be two years. 

In this type of travel loan, you do offer collateral as a guarantee, so the interest rate is a bit lower. It can be anything from 6% to 20%, depending on your loan provider. Accordingly, the comparison rates range from 7% to 23%. 

Large Secured Loans

Large secured loans are the best choice for long trips and family holidays, which incorporate the expenses of more than one individual. With these loans, you can borrow $5000 to $10,000 and pay them back over two years. The terms and conditions are pretty similar to that of medium secured loans, including the same interest and comparison rates.

Eligibility Criteria

travel loan bad credit australia

In Australia, whether you have an excellent, fair, or bad credit score, you have to meet these requirements first to be eligible for a travel loan:

  • To be an Australian citizen or at least a permanent resident.
  • To be at least 18 years old.
  • To be in regular paid employment.

If you file an application for a travel loan and meet the eligibility criteria, your request will be approved, and the fund will be released within 2-3 days. Usually, the whole process is completed online, so you won’t have to deal with documentation at least until you get your fund approved.

Footnotes

Getting a travel loan may seem like a lot of work, especially if you have a bad credit score and looking for a lender to approve your request. Yet, it’d be totally worth it once you dip your legs in the warm tropical sand or take pictures in all the locations that have been on your bucket list for god knows how long.

However, as we always say, when taking out any loan, be sure to think about it thoroughly and borrow only what you need. 

Before jumping headfirst, create a total travel budget. Research your destination, assess your par-day costs, make a list of all the activities you want to do, and don’t forget to book your return tickets first!

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

View All Posts