Discover the essential points to know about travel credit

Summer is here. So for this year you want to take advantage and go to the beach with your loved ones. But your income is not enough to finance the trip. To be able to leave anyway, you can apply for a travel credit from a loan organization. This is a consumer credit allowing you to make your travel plan a reality. Here is what you need to know about this type of loan.

What is a travel credit?

Travel credit is also called vacation credit. This is a personal loan that you can request from your bank. The loan will help you finance your travel and expenses once at your destination. Even if it is called travel credit, this type of loan is not affected. You can apply for credit as a personal loan at the bank. Once the capital is released, you are free to use it as you see fit.

Also, the credit can be used to finance your vacation, to buy the equipment you will need or just to pay for certain activities. In general, banks grant between 1,500 and 4,000 US dollars depending on the case. Depending on the profile of the borrower and the bank, it is possible to have up to US $ 21,500. In this case, the loan is more of a personal loan than a vacation loan.

Credit institutions often take a negative view of vacation credit. Also, the interest rates can be quite high. It is then advisable to make play the competition to obtain a better rate.

Conditions for obtaining a travel credit

Applying for a loan for a travel credit is similar to a consumer credit. You just go to a bank or a credit agency. These professionals will then offer you offers based on your profile. In general, travel credits are all the same for all financial institutions. To avoid scams, you still need to be vigilant on certain points.

First, go through a credit simulator. Of course, this tool is not immediately valid. Nonetheless, it will give you an overview of what you can borrow and the monthly payments. Today, many online banks offer a credit calculator.

You should also look into the terms of the credit. These vary from bank to bank. Also, it is important to seek a financial advisor or a credit comparator. This will allow you to know the terms of each credit institution. Note that the more risky your profile, the lower the amount the bank will grant.

Interest rate and monthly payments

As you probably know, the interest rate for a travel loan is quite high. In general, it ranges from 2.3 to 8%. This rate varies depending on the bank and the amount you are going to borrow. The loan repayment period also impacts the interest rate.

You are quite free for the repayment term. It varies from 12 to 60 months. This term applies to credits between 1,500 and 21,500 US dollars. Professionals in the field, however, advise not to exceed 12 months for reimbursement. This way, you can borrow again for the next vacation.

travel credit

Typology of travel credits

There are two types of vacation credits. You can apply for a personal loan. In this case, the credit conditions are defined with your banker. The borrowed amount can be used as you see fit. You also apply for a loan from travel agencies. For this second option, you must use the capital for the trip.

Other consumer credits to enjoy

Auto Credit

You plan to replace your car or buy a new one, take out a car loan. Whether new or used, a sum of money will be made available to you to finance part or all of the purchase. You will then have to repay each month with interest. The duration of your loan depends on your repayment capacity.

Works credit

As its name suggests, work credit is used to improve or fit out your home. This type of project requires a more or less substantial budget. This is why financial organizations and banks offer individuals a loan dedicated to work. The amount ranges from $ 5,000 to $ 75,000, for a repayment term of 12 to 120 months.

Personal loan

The personal loan is designed for the realization of your personal projects related to consumption. It allows you to have an amount ranging from $ 1,500 to $ 75,000, which will be defined according to your project. The rate varies in relation to the repayment term which can be done between 12 to 120 months. Online tools allow you to calculate the total cost of your loan.

Revolving credit

Revolving credit is designed to help you deal with unforeseen daily expenses. As the borrower, you decide how much money you need and how long you should repay. The revolving credit is reconstituted as and when repayments are made and can be renewed if money is needed with optional insurance.

Credit buyback

The repurchase of credit is a solution offered by your bank to simplify the management of your credits, and this, by regrouping them around a single credit. It is customizable and adapts to all situations and all profiles. It allows you to better manage your budget and reduce the amount by having monthly payments up to 60% lower.

Motorcycle loan

Motorcycle credit is a consumer loan allocated to the purchase of a two-wheeled vehicle, scooters or motorcycle. It is a financing solution for the acquisition of a motorcycle, it can be new or used. Thanks to this type of loan, you can afford the motorcycle you've always dreamed of for your everyday trips.

Wedding credit

There are loan platforms that are there to support you in your life plans, including marriage. They offer this credit with the APR twice lower than that of a revolving credit. Don't deprive yourself, now is the time to treat yourself. The marriage loan is an interesting solution to finance this unique moment.

Credit without contribution

Need funding for a personal project? Be aware that there are financial institutions that grant loans without requiring personal contribution. It is a simple, fast and transparent way to grant a loan. The procedures are even simpler when the requested amount is small. Most importantly, you can prove that you are capable of honoring your commitment to your bank.

Credit without inquiry

Credit without inquiry is available to the general public in urgent need of money. It remains special with its very short processing time and unrivaled accessibility. By opting for this type of loan, you can use the allocated funds as you wish, without you having to justify. The main thing is that you can repay your loan as agreed in the contract.

Easy credit

There are many steps that demotivate borrowers to make a loan from financial institutions, if we cite only the supporting documents, the too long processing time and complex procedures. With easy credit, all these procedures no longer exist. It consists of applying for a loan online. It only takes a few clicks for the borrower to receive a response.

CAF loan

The CAF loan is advantageous in the case where it allows to obtain a loan at zero rate. You can use the funds granted for your personal projects such as work on your house, the purchase of household appliances, the purchase of a car or even to provide for childbirth costs. On the other hand, the use must be as a first necessity, but not for comfort.

A loan commits you and must be repaid. Check your repayment capacity before you commit