Are you in desperate need of a holiday? Or maybe you have been invited to a family wedding overseas that you don’t want to miss?Let’s take a look at six reasons why you should consider using emergency loans as a way to fund your next travels.
Let’s take a look at six reasons why you should consider using emergency cash loans as a way to fund your travels.
Before making a big financial decision like taking out an emergency loan, make sure to research personal loan lenders and compare prices and features to find yourself the most suitable option.
1. Fixed Monthly Payments
Personal loans allow you to access a large amount of cash as soon as you need it and then pay it off in fixed installments over a set time.
This means you don’t have to dig into your fixed deposit or savings account.
And you don’t have to wait months and months before you have enough cash to book an important plane ticket.
Beware of loan shark harassment.
You will be able to pay for all of your vacation expenses upfront (flights, accommodation, food, and more), but remember that you will have to repay the loan with added interest.
If having cash flow is necessary for your financial situation then taking out a loan will be more advantageous to you.
2. More Flexibility
A great benefit of using personal loans for travel is that you can take advantage of the lowest travel prices even when you don’t have cash on hand at that moment.
Booking a trip at the last minute to take advantage of special discounts, or traveling during the off-season can help make your vacation a lot more affordable. And also have a good strategy when searching for loans in Canada.
A cash advance can definitely help you to grab those opportunities.
You have to be smart about the way that you do this so that it makes sense financially.
The discounts and savings that you receive on paying lower costs must be greater than the amount you would pay in interest, fees and the monthly payment of your loan.
For example, if you could save $700 through lower travel deals, your interest and fees would have to be less than $700.
3. Increase Your Credit Score
Unfortunately, people with a short credit history or poor credit score end up having to pay higher interest rates on loans. and might have a harder time finding a lender.
But if you are able to show that you have income sufficient to repay the loan, usually measured by your debt-to-income ratio, then you don’t have to worry.
Once you pay off your loan plus interest on time and prove that you are a low-risk customer, it will positively affect your credit score.
And a good credit report will make it much easier to borrow money in the future, at better APRs.
4. Better Interest Rates
Using a personal loan to fund your trip has the potential for lower interest rates.
It’s a better option when compared to credit cards, as well as payday loans which charge exorbitant interest rates (with an average annual percentage rate (APR) of about 400%!).
It’s worth mentioning the exception of using a 0% interest rate credit card – that is if you qualify for it and if you are able to pay it off before the 0% rate expires.
Another way in which emergency loans beat out credit cards and payday loans for funding your travels is that they have fixed repayment terms.
You’ll know exactly when your loan will be paid off in full and how much it will cost you in total.
Rather than obliviously swiping your credit card on your trip and racking up years of debt, you can make a more informed decision as to whether it’s worth it to borrow money.
5. No Collateral
Unsecured loans are completely collateral-free.
This means that you don’t need to put your assets such as your home, or car at stake in order to obtain emergency loans for your travels.
Although secured loans like mortgage loans and vehicle loans have lower APRs, they come with the risk of losing your belongings if you fail to repay the loan since they require collateral.
6. Emergency Situations
Most people would say that borrowing money for a trip isn’t justifiable. But this simply isn’t true.
You may be faced with unexpected travel expenses due to an important event across the globe – such as a wedding, a funeral, or a family emergency.
Ideally, you’ll have sufficient time to plan ahead for your travels. But life is unpredictable and things can happen at the last minute.
If you’re faced with an emergency flight and need to book tickets and hotels at the last minute, emergency loans can make it possible.