When looking to spread the costs of a dream holiday, many people will consider using available finance options to do so. Everyone deserves some rest and relaxation time, so anything to help make paying for this more manageable is always welcome. This is where a holiday loan can be suitable for this and provide affordable repayments.
Here at QuidMarket, we offer short term loans which we wouldn’t recommend using as a holiday loan. Our loans are designed to be used in an emergency and should only be used to make a payment that you cannot avoid, and that you do not have the savings to cover.
- New customers can borrow between £300 and £600*
- Returning customers may be eligible to borrow up to £1,500*
- Flexible repayment terms between 3-6 months
- Bad credit histories welcome
- QuidMarket is an FCA Authorised UK lender
- No hidden fees
- No guarantor or collateral needed
- Quick and simple online loan application
- Decisions made by humans, not computers
*Loan amounts and repayment terms are dependent on affordability checks
Whilst we cannot help provide a holiday loan, we can help with information about other available loans. This may help you make an informed decision about which is best for you.
Below, you’ll find out more about holiday loans, as well as more about our small loans at QuidMarket. With this information, we can hopefully help you to make an educated choice when it comes to deciding if you should borrow money for your next trip away.
What are Holiday Loans?
Holiday loans are a form of unsecured personal loans that can help those looking to pay for a holiday. As they are typically unsecured, you will not need to risk any of your assets, such as your home or car. The amounts that you can usually apply for can range between £1,000 to £25,000 depending on the lender. They may have fixed interest rates, so the monthly instalments should not change, despite how long your term is. However, the more you apply for, the longer you may be repaying the loan back.
You should always think carefully before taking out a holiday loan and decide whether this is necessary and if you have any other means to pay instead. Furthermore, if you borrow over a period longer than 12 months, you may find yourself still paying for last year’s holiday when you may wish to travel again.
At QuidMarket, we provide loans up to £600 for new customers with repayment terms available between 3 to 6 months. This means that our cash loans are not a suitable alternative to holiday loans, but instead, should be used to cover short term financial issues or emergencies. Our loans are also based on affordability rather than solely on your credit history, so may be able to offer loans for bad credit where possible. As long as you can supply evidence of your monthly income, essential spending, and any other financial commitments, your application will be considered.
How Holiday Loans Differ from Tour Operator Plans
Holiday loans and finance offered by tour operators can be different, and each are suited for different situations. With a holiday loan, you can apply with a loan provider such as a bank or online lender, and pay back monthly instalments with interest.
A holiday finance payment plan can be applied for through a holiday provider or travel agent. This is similar to a holiday loan, as you will need to pay the holiday amount over a number of months, however, it is usually with no interest charge. This is because you are not borrowing the money, but rather spreading out the large cost over a term that suits you. Holiday tour operators can sometimes offer a low deposit and at least 3 months to make the repayments, making it easier for holidaymakers to pay back. Holiday loans for bad credit may be harder to find, but some specialist lenders may be willing to help if you have a low credit rating.
The finance plans offered by holiday companies and tour operators usually have to be taken out at the time of booking your trip. It’s a convenient way to pay for a holiday and keep everything with the tour operator rather than a separate loan from another company. However, they cannot be guaranteed, just like holiday loans, and you may need a good level of credit to be approved.
Advantages & Disadvantages of Holiday Loans
If you’re seeking holiday loans, you’ll need to consider whether this is beneficial for you and what are the disadvantages of doing so. Whilst they can enable you to pay for a trip that you might not have been able to afford otherwise, taking out any form of credit is a serious financial commitment, and it may be cheaper for you to pay for a holiday out of savings instead if available.
- A holiday loan can be flexible so that once the funds are in your bank account, you can choose how you want to use the money. Whether you need it to pay for transport, hotels, travel money or travel insurance, they can be a more flexible solution than opting for a package holiday on a payment plan.
- Holiday loans also allow applicants to make fixed payment rates within a term of their choice. Borrowers will know how much they have to pay each month and when it is due to come out of their account, which will allow them to budget accordingly. Fixed repayments make it simple to budget for this type of loan and a shorter repayment term may result in a more affordable loan
- Holiday loans are often seen as an impulsive reason to borrow and not essential. Applicants may not be able to borrow as much money as they would have hoped, particularly if they have bad credit. You may be able to find holiday loans for bad credit, but you would need to carefully consider if this is best for your situation.
- Loans of any kind are a calculated risk, so applicants need to ensure that they have fully understood their repayment plan to avoid affecting their credit score. If payments are made late or missed altogether, a borrower’s credit rating can be damaged and impact their chances of borrowing in the future. By comparing holiday loan options, you’ll be able to find the best holiday loan deals before making a decision.
Eligibility for our Short Term Finance
Whilst we cannot provide a holiday loan, if you are looking to borrow to resolve an unexpected expense or financial emergency, you can apply online at QuidMarket. You can click apply now and fill out our short application form today, but you will need to ensure you can meet our below requirements first:
- Live in the UK
- Be over 23 years old, and under 65 years old
- Have a mobile phone (we send an SMS code during your application)
- Hold a UK bank account with a valid debit card
- Be in employment and take home at least £1,300 a month
We can provide a fast decision so that if you need to resolve a short term financial emergency quickly, we provide the funds once approved as soon as possible. Whilst we may be able to help those with a poor credit score, we do not offer guaranteed loans, so you will need to ensure the loan is affordable for you before applying. If we cannot determine the loan you require is affordable, we will have to decline.
Apply Now When You Need Funds for Emergency Expenses
Whilst we are happy to hear you are planning a well deserved break, unfortunately, we cannot help provide holiday loans. However, if you are ever in need of quick cash loans when the unexpected happens, we may be able to help. If you have exhausted other options first such as using your savings or asking friends and family, you can apply online for a decision.
If you have any questions, please contact us. For more information to help you if you are experiencing financial difficulties, please visit Money Helper for further assistance.
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FAQs
Can I use a holiday loan for other types of expenses?
A holiday loan can be used for any related expenses to do with your trip away. So, if you need to cover the cost of flights, accommodation, as well as airport transfers, and excursions, you can do so. This differs from holiday finance deals through a tour operator which would only cover the package holiday itself and not provide you with the cash to choose how you want to use it.
If you are looking for a loan to cover emergency expenses unrelated to your holiday instead, you can apply online at QuidMarket for loans up to £600 for new customers.
Are holiday loans the same as personal loans?
Both personal loans and holiday loans can be similar, but this will depend on the lender you choose. A personal loan offers higher value borrowing of £1,000 and above and a fixed term of interest. Some holiday loans may offer a similar option, but there may be others that are not fixed term and have different interest rates. Before applying for a holiday loan, compare your options to fully understand the terms being offered.
Are there interest-free holiday loans?
These may be available through holiday companies and tour operators, but they differ slightly from holiday loans. A 0% interest loan will normally be offered by retailers to help spread the cost of goods and services, but won’t provide you with cash to use, just a convenient way to pay if you cannot settle in one lump sum. A holiday loan will provide the loan amount when approved to your bank account to use for holiday expenses.
Are Holidays Loans Different To Holiday Package Payment Plans?
In short, the answer to this question is yes, the two are different, and each are suited to different people. With a holiday loan, you will apply with a loans provider and pay back monthly instalments with interest. A holiday package payment plan is secured via a holiday provider or travel agent, and is similar to a holiday loan, as you will need to pay the holiday amount over a number of months, but usually with no interest. This is because you are not borrowing the money, but rather spreading out the large cost over a term that suits you. They typically offer a low deposit and at least 3 months to make the repayments.
Advantages Of Holidays Loans
There are several benefits to seeking holiday finance loans, the first being that you will be able to pay for a trip that you might not have been able to afford otherwise. However, taking out any form of credit is a serious financial commitment, and it would usually be cheaper for you to pay for a holiday out of savings.
Another advantage is that there is no restriction on what you use a holiday loan for. Once the money is in your bank account, a holiday loan provides you with the freedom to spend the money how you choose, whether you need it to pay for transport, hotels, travel money or travel insurance. This can be a more flexible solution than opting for a package holiday on a payment plan.
Holiday loans also allow applicants to make fixed payment rates within a term of their choice. Borrowers will know how much they have to pay each month and when it is due to come out of their account, giving them the opportunity to budget accordingly. Fixed repayments make it simple to budget for this type of loan and a shorter repayment term could result in a more affordable loan overall.
Disadvantages Of Holiday Loans
Holiday loans are often seen as an impulsive reason to borrow, but applicants may not be able to borrow as much money as they would have hoped, particularly if they have bad credit.
Loans of any kind are a calculated risk, so applicants need to ensure that they have fully understood their repayment plan to avoid affecting their credit score. If payments are made late or missed all together, a borrower’s credit rating can be damaged and hurt their chances of borrowing in the future. They should also shop around to try and find the best holiday loan deals before making a decision.
Alternatives To Holiday Finance Loans
If you have been looking for holiday loans to help fund your next trip, there are a few alternatives that you should consider before applying:
- Use Your Savings – the less you borrow, the better, so if you have a healthy savings account, you should consider using some of the cash to cover as much of the holiday as possible. If you don’t have enough to cover the majority, think about how long it would take for you to save for the holiday. It might not be as long as you think and it would be worth the wait.
- Use A Credit Card – many credit card providers offer 0% interest credit cards, which you could use as an interest-free loan to fund your holiday. Many of the interest-free periods end after 12 months, so as long as you repay within the time frame, no interest will be incurred.
- Personal Borrowing – if you have trusted friends or family members that are willing to help, it can be a good option. Make sure you write up your agreements and the term that you settle on to make it official.
- Apply For A Line Of Credit – a line of credit is similar to a credit card. You decide the amount of credit you would like to set the limit at, then you can spend up to this limit and repay by a due date. Typically, you will only pay interest on the money you spend, so if you do not spend anything in your line of credit, you won’t start paying interest.
If you have exhausted all other options, holiday finance loans can help you to have the holiday of your dreams. However, they should be approached with caution and careful consideration. If you need any more support, please use the Money Advice Service for free and impartial advice.
QuidMarket provide short term loans with terms of 3 to 6 months, which would not be suitable in place of holiday finance loans. Our loans are designed to help applicants cover emergency loan situations or temporary cash flow issues, so they should not be used for holidays. If you need more information on our loans, please contact us and our friendly team will be on hand to help.