How To Pick A Travel Loan That Can Go The Distance
Have you been planning a trip for too long? Still waiting to save up enough funds. Yes, travelling the world does come with an expensive price tag. At such times, a travel loan is a great way to fulfill your travel dreams without having to borrow from your loved ones. Amidst lives packed with busy schedules, vacations become a part of the package as a necessity to stay fresh. But our day-to-day is also packed with expenses which often lead to vacation expenses taking a back seat. Whether you want to plan a natural retreat, or an adrenaline packed one or anything in between, you must put in the work to plan. Right from your travel cost to accommodations, food and getting around; everything needs to be accounted for before you set your foot out of the door. As the number of vacations taken by millennials increases, the number of travel loans available get more attractive. A travel loan can help you fulfill your travel goals without any stress. From offering flexible tenures to even flexible EMI options, there are a wide range of options available. But how does one go about finding the right one? Related Reads: Learn To Be A Smart Borrower This Festive Season It is important to consider a few things while you might be looking at different loans in the market: 1) Travel ready but short on savings? There are numerous advantages to picking up a travel loan. There are times when you will be able to save up money and plan your vacation but there are certain times when you have to mark your presence like a surprise bash for a friend or a wedding party, but there isn’t enough time to collect a corpus. In such a scenario, you will need to pick up a loan that can cater to your travel needs. Travel loans are unsecured, so you needn’t worry about finding a guarantor or arranging for a collateral. These loans can also have low interest rates where some banks even offer flexible repayment tenures. But to get instant service and quick processing of your loan, you need to have a reliable credit history and credit score. Since these loans are unsecured, banks disburse it to those who have a clean credit history. If you are asking yourself “how do I check my credit score?” know that you can find out your FREE credit score from the CRIF website.
2) Mapped your expenses yet? It is very important to jot every possible and unexpected expense before deciding the loan amount. This not only helps you gain clarity but is also useful in identifying the type of loan you would want to pick up. You must research the accommodations, the cost of tickets, sightseeing and the commute you’ll need within the cities or towns you plan to visit. You should also plan for any medical emergencies and miscellaneous expenses in advance. Also consider any flight miles or reservation coupons that can help you with the planning. This way, your travel loan amount can be reduced. 3) Trot around for the best interest rates? Spend as much time researching around for travel loans as you will in finding places to stay and visit on your vacation. Many banks extend festive offers or lower interest rates depending on your history. So, make sure you do not miss them in haste. Also enquire about the application process and documents required to ensure that your loan process is smooth and fast. Make sure you have a good enough credit score for personal loan before you apply for one as it will help you secure a loan easily and at lower interest rate. 4) Book with a credit card or a travel loan? People mostly opt for a personal loan or credit card to fund their travels. In case of a personal loan, you must repay the entire amount you borrow, irrespective of how much you use. But in the case of a credit card, you pay as you go and repay only the amount you borrow. A travel credit card comes with several benefits like cancellation insurances, less or no foreign transaction fees and some even offer cashback or discounts. So, take your pick after thorough research! Apart from all these factors, consider the repayment tenure carefully to maintain stability of other ongoing EMIs and credit card dues. Also ensure that your account has enough balance to keep the EMIs rolling while you are out on your vacation. Keep a close check on your credit score beforehand to keep an eye on your credit portfolio. Begin by checking your free Personal Credit Score with CRIF. Take up credit responsibly and enjoy your travels with well-planned finances.