Just because you have bad credit, does not mean that you have to miss out on traveling! Learn all about Vacation Financing and how to travel Now, pay Later, with No Credit Check!
Your credit score is a reflection of your financial responsibility. A good score gets you better interest rates and cheaper insurance. But sometimes, even responsible consumers run into trouble with their credit.
One medical emergency, a lost job, or divorce can ruin your financial status. Miss or make a few late payments and you’ll get a poor credit rating.
When you have a low credit score it affects other areas of your life. It can mess with everything from getting a job to renting an apartment. That’s because many companies decide to do business with you based on your credit score.
Have you ever wondered if it’s possible to travel when you have bad credit? How about travel now, pay later, no credit check options? Most people assume you need a travel credit card to book a flight, stay at a hotel, and rent a car. But is that true?
Keep reading if you’re rebuilding your credit, but don’t want to wait to travel. This article explains how to travel when you have bad credit.
Guide to Vacation Financing
One way to book your travel without a credit check is vacation financing. You can use it to arrange flights, hotels, rental cars, and more. You book your travel now, then pay for it in full before the trip.
Flexible Payment Plan
The travel company provides a flexible payment plan with no interest or fees. You pay in installments over a set period of time. There are guidelines on the total cost of the trip, and down payment.
You decide the details of a flexible payment plan when you book your travel. You set up a payment schedule with the travel agency. You need a security deposit. The amount of the security deposit (AKA down payment) goes toward the total cost of the trip.
A flexible payment plan doesn’t need a credit check. You don’t give any financial or credit information. That’s because you pay in full before you begin your travel.
A flexible payment plan isn’t a pay later option — you pay in full before your trip.
One downside is a flexible payment plan won’t help in an emergency situation. If you need to travel at the last minute you won’t have time to pay ahead.
Travel and vacation loans are a true trip now, pay later option. You can find one when you book through an online travel agency or airline. The loans work as a personal installment loan. The difference is they’re made for travel expenses.
Most travel loans ask for a credit check. You may find one that qualifies you despite the bad credit.
Conventional wisdom advises against borrowing money for travel. Travel isn’t a tangible asset. It isn’t worth anything to anyone but you. If you decide to borrow money for travel you must be willing to pay for it long after it’s gone.
If you borrow a large amount you could be paying for years. Decide if your trip is worth the amount you have to pay back. A personal loan includes fees and interest on top of the loan amount. If you have bad credit, your interest fees could be steep.
Travel loan interest rates vary between 11.5% and 21%. Let’s say you borrow $5,000 at an 18% interest rate and pay $80 per month. It will take you 10 years and 3 months to pay off the loan. Even worse, your final cost is $9,840 for your travel.
You could pay for your travel with a personal loan, but that adds to your debt. Unless your travel is an emergency, try to plan ahead and pay before you travel. If you do have a crisis situation investigate loans with bad credit.
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