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How to Use Travel Loans to Fund Your Upcoming Travels

If you’ve been daydreaming about dipping in the Maldives waters, don’t let a few expenses hold you back. Try taking up a travel loan – it’s a reasonably simple way to pay for your trip later and memories now.Here’s everything you need to know How to Use Travel Loans, how they work, their pros and cons, and what’s the process of getting them.

With the Australian borders opening up for international travel, taking up small loans to fund a getaway is becoming more popular with Australians by the day. It might not be the first thing that comes to mind, but it can work out to be a smart move.

Travel loans allow you to withdraw large chunks of cash and pay it back at your own weekly, fortnightly or monthly convenience.

The Travel Loan 101

Did you know that an average Aussie spends nearly $5,000* on an overseas trip? Also, Australia is the 12th most expensive country* to catch a flight from? These costs will probably hike up now that the traveling bans have finally lifted and people just want to get out.

Traveling is not exactly easy on the pocket – but thankfully, there are ways to satisfy your wanderlust. A travel loan is one of those ways. Travel loans are loans that fund your holiday trips – this may include flights, accommodation, food, and other costs that may spring up.

Since holiday purchases tend to be intangible objects – like mentioned above – the money borrowed to fund it is called an ‘unsecured loan.’ Travel loans are usually unsecured – and, no, ‘unsecured’ doesn’t mean unsafe.

It simply means that you’ll be given a loan based on your credit history and income instead of having to put in some form of security. 

How Travel Loans Work

  1. Calculate all the costs and fees before applying
  2. Fill out an application for a travel loan
  3. Receive your loan
  4. Enjoy your holidays!
  5. Save up on interest by paying it back early.

If you’re unsure of going specific details, check out our travel and holiday loan repayment calculator. This tool will allow you to see the exact amount and frequency of the loan repayments. The max you can borrow with Credit24 for travel loans is $10,000 that you can pay for fewer than 36 months or two years.

You can get started on a travel loan application. It usually takes 10 minutes to complete an application and you’ll get an outcome in minutes. Loans are generally processed within 24 hours provided that you have provided all the relevant information.

If your application is approved, we’ll transfer the money usually on the same day, depending on your bank. . Take that amount, and enjoy your well-deserved break!

Benefits of a Travel Loan

Generally speaking, the pros of personal loans outweigh the cons by a long shot -, especially for a bit of budget-friendly traveling. With personal loans:

  1. You can set a budget and be more in charge of the expenses of the trip
  2. If you’re  loans approved for a loan, money is deposited into your account reasonably quick
  3. You can fix the rate and frequency of the repayment
  4. You can withdraw money without worrying about the massive cash advance fees.

With travel loans, you know exactly what you’re signing up for – the budget you have, how much time it will take you to pay it off, and so on. This makes the entire process much more practical and easier to commit to.

Tips For Minimizing Your Travel Loans

Travel loans are a smart way to go about funding for your holidays. However, you might benefit from keeping a few things in mind before you go down the travel loan route.

  1. Start planning and budgeting early – research the costs, flights, accommodation, and even add gifts and souvenir costs. The more detailed, the better!
  2. Book flights during the off-peak holiday seasons – ticket costs skyrocket during the summer, winters, and the holidays. Choose another time for your travels if you can.
  3. Use cards that offer travelers incentives – sometimes, you can get excellent deals and discounts on tickets or certain hotels.
  4. Keep an eye on the foreign exchange rate – it will help you narrow down the country that’s in your budget as well.
  5. Utilize overseas tax savings – some countries allow you to claim part of or the whole of retail sales taxes that you pay as a foreigner.  Make sure to claim it if you can!

While travel loans are a great option to consider, do make sure you have a good credit history and are fully aware of what you’re committing to when it comes to repayment and interest rate.

Here’s What You Get With Credit24

Thinking of using a travel loan to fund your upcoming travels? Well, you’re at the right place. Credit24’s travel loans help wanderlusts out there who fit our criteria, which is:

  1. That you’re an Australian citizen or Permanent Resident
  2. That you’re an adult above the age of 18
  3. That you’re employed and own a bank account, to which you get paid
  4. That you have a good credit history
  5. That you earn a minimum of $1000 monthly
  6. That less than 50% of your income comes from Centrelink

Plus, when you apply for the loan, be sure to attach your phone number, email address, a copy of your driver’s license, and the last three months of your bank statement.

If you’re looking to take travel loans to fund your upcoming travels, and if you fit our criteria, start your application with us, and we’ll get back to you ASAP.

Disclaimer:

*Source: https://www.budgetdirect.com.au/travel-insurance/research/average-holiday-cost-statistics.html. Year 2019.  IPF Digital Australia Pty Ltd, trading as Credit24, ABN 59 130 894 405. Australian Credit License 422839. Lending criteria, fees and charges apply.

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