Competitive personal loans to help you with your travel plans
Funding a holiday, big or small, can be a complicated process with a variety of moving parts and different areas to cover. Fortunately, you can ease the stress of paying for your whole holiday out of pocket upfront by comparing affordable personal loans with Savvy, with approvals possible in a matter of minutes.
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|OurMoneyMarket Unsecured Personal Loan|
Apply for an unsecured personal loan between $2001 to $75,000 for a variety of loan purposes. Get a personalised rate estimate in minutes without impact your credit score.More details
|Harmoney Unsecured Personal Loan|
Borrow up to $70,000 with personalised rates and repay over 3,5 or 7 years loan terms.More details
|Now Finance No Fee Unsecured Personal Loan|
Borrow up to $50,000 with no fees, now and forever. Minimum requirement to earn $22,100 p.a. and have good to excellent credit.More details
|Plenti Unsecured Personal Loan (Excellent Credit)|
Apply for an unsecured personal loan and enjoy low rates for excellent credit. With no early repayment or exit fees, there’s a lot to love about this loan.More details
Disclaimer: A comparison rate indicates the true cost of a loan. The comparison rate displayed for this advertiser is calculated based on a loan amount of $30,000 over 5 years and represents the effective rate on the loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.
More on how to compare travel personal loans
Travel personal loans – what are they and how do they work?
Travel loans fall under the umbrella of personal loans and function in the same way as most others. Most travel loans will be unsecured personal loans with a fixed interest rate designed for use towards a holiday or general travel.
Generally, lenders will offer potential borrowers an amount between $2,000 and $75,000 and provide the option to pay it back over a term of one year all the way up to seven. These elements, as well as other policies, will be determined by the lender, so they may vary between each different lender depending on the type of loan you receive and your own financial history.
This presents borrowers with a golden opportunity to compare lenders through whatever aspect of the loan they find the most important. We pride ourselves on comparing loans where they matter to you, so you can look at different lenders’ deals in our rate table.
How can I effectively compare travel loans?
Fortunately, travel loan seekers are afforded a wealth of options when it comes to how they may choose to compare between different loans. We’ve listed some of the key areas that you should consider below:
The type of loan
There are four main options when it comes to the types of loans you can go with for your travel needs. Term loans are the most common form of loan in the travel area. These align with the examples mentioned above, ostensibly functioning as an unsecured, fixed-rate personal loan. A line of credit can be another sensible option if you’re looking for travel financing options, which is a pre-defined amount of money like a personal loan but able to be drawn upon whenever the borrower needs it. Credit cards and short-term loans can work for smaller travel loan needs but are not advisable for amounts beyond what you’d be able to pay back within a month due to their extremely high interest rates.
The length of the loan
The time over which your loan spans will go a long way to dictating the amount you’ll pay for each instalment; basically, the longer the loan, the less money you’ll pay. Personal loans tend to cap their loan terms at seven years, with a minimum of one year, but this may differ slightly between lenders. It is also important to note that the longer the loan, the more interest and fees you’ll accrue, so shorter loans may be the way to go if you’re looking to avoid that.
Interest and other fees
Interest rates are easy to compare between lenders, but it’s also important to note how much each different personal loan will set you back in terms of fees. Lenders will have different policies when it comes to the exact amount they’ll charge, but application, instalment, annual, early and late repayment and early termination will all typically come with a cost. Some lenders may not charge for all of these, particularly early or additional repayment fees, so you should check with lenders in advance to find out their policies.
Any other bonuses involved
You may find that some loans will build in some extra sweeteners to draw you towards them, which might be worth considering. An example of this could be discounts on certain aspects of the holiday or insurance. It may not end up deciding which loan you choose to go with, but it can certainly influence it.
See how we can help you with your travel loan
Top tips for planning your next holiday
A personal loan is a good financial boost that can be used to pay off holiday costs. However, you could end up paying more for your holiday than you should without a budget in place. Having a holiday destination in place already gives you the advantage of being able to plan around costs such as accommodation and travel, so you can apply for an adequate amount when applying for a loan. Saving on the side can help you budget for food and spending money which lowers costs.
There are a few things that you can do to minimise the cost of going on holiday. Researching for the best travel deals and discounts on things such as accommodation, meals, rental cars and more will give you clarity on your budget. There are some credit cards that come with rewards and frequent flyer points that can be used to make your travel economical. Checking to see how you can best utilise your points and rewards can be a saving grace.
The type of credit card that you are planning to use abroad can affect your overall bill. Always keep in mind how your card’s interest rate will affect your monthly repayments. If you’re swiping abroad with an ordinary card you can attract a 3% foreign transaction fee, which can dampen anyone’s holiday mood. Using a 0% foreign transaction credit card can be useful as it charges no foreign transaction fee and converts to other currencies with no additional costs.
Having travel insurance will not only give you peace of mind but also protect you when you need it most. Australians choose different ways to insure themselves, which can be through an insurer or using their credit card for travel insurance. However, before you jet set to your destination, it’s important you check what your insurance covers. Some travel insurance policies only cover you once you’ve left Australian soil and can’t be used locally.
Pros and cons of travel loans
Making your dream a reality
If you’re not quite at the point with your finances where you can travel on your own funds, a travel loan can unlock the potential for you to go on that holiday you’ve always wanted
Quicker application process
In comparison to larger financial undertakings, the process for applying for a travel loan is much quicker and easier
Greater outlay on your holiday
While loans are very useful for making funds available to you up front, the interest rates and fees that they contain will ensure your overall spend is greater than what you received
Tough early repayment fees
Some lenders may charge excessive fees for making early or additional repayments, so try to go with one that doesn’t slug you if you want that flexibility