Everyone has a destination they would like to visit in their lifetime. Whether you want to go to the Land Down Under, Costa Rica, or Bali the issue of finances always becomes a hurdle. Most people spend their lifetime saving in order to make their dream vacation come true, but today there are many financial products that allow you to travel whenever you want.
Alternative Travel Funding
While it might look like the most viable option, saving for travel might never work. You will always have more urgent financial needs and you will never reach your target amount. What is more, with inflationary pressure, the cost of travel keeps going up and for popular destinations, this means the fees are higher. This is where secured online personal loans come in handy.
If you do not have another loan and you have already paid for your mortgage, a secured loan is a very viable method to fund your dream vacation. Secured loans require collateral; be it your car or any other property. While your bank might not be too keen to fund your personal loan for travel, there are many licensed private lenders who will gladly provide such services. These lenders are available online and there are many reasons to try them. Here are just a few of these reasons:
- Faster loan approval: Traditional lenders take weeks to approve your loan and if you have bad credit, your application will most likely be rejected. This can be disappointing if you had already started planning for your vacation. With an online secured loan, the approval is done faster to guarantee you travel on time.
- Better interest rates: Online personal loans offer better rates, because there are so many companies competing for few customers. When the loan is secured, the rates are even lower because the risk is reduced. Using your car or home as collateral means the lender is exposed to less risk.
- Flexibility: Whether you want to buy a boat or fly first class during your vacation, it is all up to you; after all this is a dream vacation. The money you get is yours to spend and there are no constraints on how to spend it. Most banks want to strictly follow how you are using your loan and it is no wonder they do not want to provide travel funding.
- Tailor-made loans: Every customer has a unique financial need and as such loan providers will offer a custom loan product based on the value of your collateral and your existing financial situation. You should have a say in the terms in order to pay off the loan more easily considering your asset will be on the line in case of default. Consider different interest rate options including variable and fixed.
When shopping for a travel loan, ensure you compare as many lenders as possible. The Federal Trade Commission has made it easier for consumers to compare different lenders and it also regulates the online financial industry to guarantee the best services.
John Ferrell is a traveling consultant with a strong background in the banking industry. He consults for different travel companies in New York. He also writes about different travel financing options including secured online personal loans among others.