Get a Travel Loan To Plan a Wonderful Vacation!
Saturday, June 17, 2017, 6:00 AM | Leave Comment
Holiday travel is a necessity to add some fun in a busy scheduled life. It lets you take a break before you go back to all those responsibilities.
But vacations have a lot of expense attached. If you want to travel within your country or to any foreign country with your loved ones, the expense can make a big hole in your pocket.
Hence sometimes it is advisable to get a personal loan for travel.
Few Tips to help you organize your Travel Loan
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Whether you really need to borrow for your travel, should be your first question. But if your travel expense is going to be a costly affair or you don’t want to consume all your savings in one go on traveling, you may consider taking a loan.
However, loans necessarily come with an interest while paying back. So you should be sure whether you want to take that risk for the vacation your planning.
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You should make a budget by considering your income and expenses. Once you have calculated that you will be able to pay your loan EMI easily without having any problems handling your basic expenses, you can consider going for a loan.
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Try using your credit card for things like hotel rooms, travel ticket charges and food charges, which you can pay later after your vacation.
Credit cards have easy installment plans where you can pay your charges as EMIs also. And in this case, the rate of interest can be high, but you get a lot of cash back returns and more perks like travel insurance on your credit card purchase.
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Always check your credit score before you take out a travel personal loan. It is a possibility if your scores are low, you will get the loan at a very high rate of interest.
You can improve your credit scores by paying your bills and payment of any credit card before due dates. Once your credit score is very good you might be offered a travel loan or Personal Loan on a very low-interest rate.
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The interest rate is of crucial importance in getting a Personal loan. It should not be a burden in terms of the EMI you end up paying. Be sure to check for options in the fixed and variable rate of interests and go with the one that suits you.
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A personal loan can be of two types. You can go with the secured loan option, in which you will have to keep a collateral to get the desired amount.
For e.g. loan can be against your Savings, fixed deposit, property, gold etc. In this type of loan, normally the rate of interest is very low.
You can also consider taking an unsecured loan. In this type of loan you might have to pay a high rate of interest, as the bank does not have any collateral, hence banks are at a risk of a borrower defaulting on payments. But you should be getting a good enough rate of interest on the basis of your credit report.
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In order to repay the loan you took, you should not take long to finish your EMIs. Make sure that your tenure period is as low as possible, so your loan is paid sooner.
Essentially you should not be stretching a loan like a travel or personal loan because you never know when you may need the money for other purposes. But be sure to take one only after weighing all the features and yes, also enjoy your trip!
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