Compare Holiday Loans

Holiday Loans

Unsecured Loan for Your Next Holiday

What is a holiday loan?

If you’re planning a big family holiday or a round-the-world trip you might want to pay for that vacation in stages, in which case an unsecured loan may well be a suitable option. Loans for a holiday can be a good option for those who need a break but might not have the funds available upfront.

Holiday loans are a personal loan used to cover the cost of a trip, allowing individuals to pay for their trip at a time, subject to their financial circumstances and borrowing history at the time of application.

This type of personal loan could enable you to book your vacation today (before prices start to soar or your dream locations get booked up), and then pay it off gradually over a period of months or even years, providing you with greater payment flexibility on your loan.

Of course, even though your monthly repayments might be easier to manage than a lumpsum payment upfront, it’s still important to shop around by comparing loans from a range of different lenders. That way you have a better chance of finding an unsecured loan with a lower interest rate, which means your dream holiday would cost less overall.

Will taking out a loan to pay for my holiday make the holiday more expensive overall?

Yes, since your loan will accrue interest you’ll pay more for your holiday overall if you take out an unsecured loan to fund your trip abroad.

Exactly how much more your holiday will cost when you pay for it this way will depend on the interest rate on your loan, which is why it’s always a good idea to shop around in order to find a suitable loan at the lowest APR.

Where can I get a holiday loan?

You can apply with a lender for a holiday loan if you meet their eligibility requirements. Different lenders may have different lending requirements but ultimately you will have a choice between lenders so it pays to compare as many as possible. Most lenders will have some basic requirements such as the following:

• Be at least 18 years old to apply
• Be a UK resident with a permanent address
• Proof of income

Some lenders may consider you too risky to offer a holiday loan but do not be disheartened, simply compare multiple lenders and find the one which willing to lend to you and also offers you the best deal.

Can I use a holiday loan for domestic travel?

In short, yes. An unsecured personal loan can be used for various purposes such as a holiday in this case. Other uses for personal loans include things such as home improvements, Wedding Expenses and leisure. Once approved, the funds can be used for any holiday, anywhere in the world, including domestically within the UK.

Typically you may NOT use a holiday loan in investments and business-related ventures or Repaying CCJs.

How do holiday loans work?

Getting a holiday loan is relatively straightforward once you’ve met the basic eligibility requirements. Essentially all you need to do is apply for the holiday loan and provide the required information such as proof of address and income. If accepted you will then usually receive the loan in your nominated bank account within a few days. Monthly repayments are typically made immediately to repay the loan, with the interest rate and repayments being fixed from the beginning.

1. Compare lenders for your holiday loan
2. Apply for the loan 
3. Receive loan into a nominated bank account
4. Pay back your loan

How much do Holiday loans cost?

The cost of your holiday loan will largely depend on your personal circumstances, including the amount you intend to borrow, the repayment time, and the interest (APR) added. A loan calculator can help determine the cost by allowing you to input your monthly repayment capacity or view monthly instalments at different interest rates for a specific loan amount. This tool can help determine the appropriate loan size and interest rate.