Holiday loans
Whether you’re planning a relaxing beach escape, a family holiday or a bucket list adventure, a personal loan can help you spread the cost of your trip.
Representative 48.7% APR
From flights and accommodation to activities and travel insurance, a holiday loan can provide the funds you need upfront, with fixed monthly repayments.
But while holidays are something many of us look forward to, they can also be a big expense. Before borrowing, make sure the repayments are affordable and consider whether a loan is the right choice for you.
Loans for travelling
A holiday loan can help you spread the cost of your trip over time, rather than paying for it all at once. It could be used to help pay for:
- Flights and airport transfers
- Hotels, villas or other accommodation
- Package holidays
- Cruises
- Travel insurance
- Excursions and activities
- Spending money and other travel costs
For some, paying these costs in monthly instalments is easier than waiting to save up for travel.
Things to consider before taking out a holiday loan
While a loan can make a trip more affordable in the short term, it’s important to remember that…
- You’ll need to repay the loan, plus any interest
- Monthly repayments will reduce your disposable income
- Missing repayments could affect your credit score
A holiday is a non-essential expense. So, think about whether borrowing is the right choice for your finances.
ClearScore can help you find personal loans:
- From £1,000 to £25,000
- Over 1 to 5 years
- No impact to your credit score
- Personalised offers tailored to your needs
- Know what you'll repay each month and over what term, upfront
Representative 48.7% APR
*Vanquis Bank acts as a credit broker, not a lender, introducing customers to our partner ClearScore. ClearScore acts as a credit broker and not as a lender. If you take out a loan, Vanquis Bank and ClearScore receive a commission payment from your lender. If you’d like further information about the commission Vanquis Bank or ClearScore receive as a result of your loan, please contact us. We will not charge you a fee for our services. Loans can only be offered to customers aged 18 or over. Credit is subject to status. Terms and conditions apply.
Can I get a holiday loan with bad credit?
Yes, you may still be able to get a holiday loan with bad credit, but you may have fewer options and higher interest rates. ClearScore can help customers with bad credit find suitable loan options from a wide range of lenders.
Having little or no credit history can make approval harder. This is because lenders may have less info to assess your application.
Before applying, consider whether a holiday is the right priority for your finances and make sure any repayments are affordable. If money is tight, focusing on your financial wellbeing or saving up for your trip could be a better option.
How to keep holiday costs down
Book early, if you can
Flights, accommodation and package holidays can often be cheaper when booked in advance. Plus, you have longer to pay them off.
Check if your holiday is ATOL protected
If you're booking a package holiday, ATOL protection can provide financial protection if the travel company stops trading, helping you avoid unexpected costs.
Look for 0% payment plans
Some holiday providers and hotels offer 0% instalment plans. This lets you spread the cost of your trip over time without paying extra interest.
Set a budget
Work out how much you can afford to spend before you travel and try to stick to it.
Compare prices
Shop around and compare travel companies, hotels and activities to find the best value for money.
Travel outside peak seasons
Holidays can be much cheaper during off-peak periods when demand is lower.
Consider package holidays
Combining flights, accommodation, and transfers may work out cheaper than booking everything separately.
Pre-book activities
Booking attractions and excursions in advance can help you save money.
Sort out your travel money before you leave
Check exchange rates and organise foreign currency in advance. This can help you avoid expensive airport exchange fees.
Keep an eye on extra charges
Remember to factor in baggage fees, airport transfers, travel insurance, and other costs.
Use a suitable payment method abroad
Some cards can be a cheaper way to spend abroad than carrying a lot of cash.
Track your spending when you’re away
Keep an eye on your daily spend to help you stay within budget and avoid unexpected costs.
FAQs
How else can I pay for a holiday?
A holiday loan isn’t the only way to fund your next trip. Depending on your situation, there might be other options that fit your budget and spending habits better.
Save up in advance: If your travel plans aren’t urgent, saving for your holiday is a good option instead of borrowing. Saving money regularly can help you pay for flights, accommodation, and activities. This way, you avoid debt and interest charges.
Pay in instalments: Some travel providers and hotels offer low-interest or interest-free payment plans, allowing you to spread the cost of your holiday over time without taking out a separate loan.
Before choosing how to pay for a holiday, think about your budget. Make sure any borrowing is easy to afford. If you’re not sure you can handle repayments, it might be better to save up and pay in advance.
What can I use a holiday loan for?
A holiday loan can help cover a range of travel costs, including flights, accommodation, travel insurance, activities and spending money. It’s important to remember that these types of loans can’t be used for things like:
- Gambling or betting activities
- Investments or risky projects
- Purchasing timeshares
- Business purposes
- Any use that would be unlawful or prohibited under the lender’s terms and conditions
Before you apply, check the lender’s eligibility criteria, and make sure the loan can cover your planned travel expenses.
What should I do if I can’t afford a holiday?
If you’re concerned about money, think about whether a holiday fits your budget right now. Only take out a loan if you’re sure you can afford the repayments along with your current financial commitments.
If you can’t comfortably afford the repayments, consider postponing your holiday or planning a staycation, and saving for it instead.
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