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5 Advantages of Using Personal Loans for Vacation

5 Advantages of Using Personal Loans for Vacation

You’re stressed out and in desperate need of a relaxing vacation. The only problem, you have no money saved to take one. Sound familiar? Don’t give up on that much-needed escape just yet. A personal loan may be just what the doctor ordered to make your vacation dreams come true. Best of all, local credit unions like Choice One offer low, fixed-rate personal loans with flexible terms for their credit union members. Sound enticing? Here are some other benefits of applying for a personal loan to help pay for a vacation.

Personal loans can help you stick to your travel budget

How’s that you ask? Well, it’s simple. If you borrowed $4,000 to take your family on vacation, then that’s exactly what you have available to spend. Knowing how much you have in advance will enable you to budget while planning for the trip and also impact your spending while away. Here’s a tip, if you want to stick to the budget, leave those credit cards in your wallet just for emergencies while traveling.

You should be able to get approved for a personal loan pretty quickly

Come across a great travel deal, but just don’t have the money to take advantage of it? Well, a personal loan can solve that problem. We’ve all seen those great Travel Zoo deals or limited-time vacation sales come our way. At times the deal is so good we just wish we had the money on hand to take advantage. Well, now you can act quickly by applying for a personal loan to pay for that great vacation deal. To make the process even faster, many lenders, including Choice One Community Credit Union will allow you to apply for personal loans right online.

You don’t need collateral for unsecured personal loans

Unlike other types of loans, such as a home equity loan or an auto loan, you don’t need collateral for a personal loan. All you need is a good credit history and steady income to apply for unsecured personal loans. That’s just another reason it makes a great option for a vacation loan.

Personal loans can be less expensive than using a credit card

Personal loan rates are typically lower than credit card rates. This can mean big-time savings on interest. If you have a great credit rating, you may be eligible for an even lower interest rate on a loan. Again, unlike a credit card where you may be tempted to go over your budget, with a personal loan you already have a lump sum in hand. It enables you to leave that credit card at home and eliminate the temptation of overspending. Here’s another plus for using personal loans rather than credit cards for vacation. They will not affect your credit ratio like maxing out those credit cards. Just be sure to compare fees along with rates when shopping for personal loans.

Pay off your loan over a fixed period of time

With personal loans, you will know in advance your monthly payment amount and term. With fixed-rate personal loans, there will be no fluctuating payments, just a single monthly payment you can count on until the loan is paid in full.

Applying for personal loans for vacation

Keep in mind that we aren’t condoning going into debt to go on vacation, especially if you just can’t afford it. Personal loans for vacation are best for those who are financially responsible and can pay off a loan, but just find themselves strapped for cash when they’re looking for a relaxing getaway. They can be a quick and easy option for vacation funding needs. Most importantly, as with any other loan, be completely confident that you will be able to make the monthly payments before borrowing money.

Learn more about personal loan options or apply for a loan online at Choice One Credit Union. Read more about personal loans on our Seven Personal Loan FAQs blog.