If you have been dreaming of getting away but unfortunately don’t have a week of fun scheduled in your monthly budget, consider a personal loan for vacation. Sometimes we just need some time away from work, school, and our hectic schedule to relax, unwind, and rejuvenate, even when our budget doesn’t allow it. If you’re in vacation mode but don’t have the funds to plan your next exciting adventure, consider a personal loan for vacation expenses to make your getaway dream a reality. Here are some reasons why personal loans from your local credit union are a great option for your vacation escape.
Perk #1: Personal Loans Are Predictable
Choosing a personal loan for vacation offers a fixed interest rate, meaning that your monthly payment will remain the same throughout the term of the loan. Fixed rate personal loans from your local credit union allow you to budget better and know exactly how much is due each month. They typically offer lower rates than credit cards, making them a smart financial choice.
Perk #2: Personal Loans Offer Longer Repayment Terms
Unlike short-term vacation payment plans, using a personal loan for vacation allows you to pay the loan back over a longer term. Personal loans from your credit union can offer terms up to five years versus shorter terms for vacation payment plans that average just six to 12 months for repayment. Spreading your total loan over five years can help make your payments affordable and fit within your existing budget.
Perk #3: Personal Loans Can Help Your Credit Score
While paying for any vacation with cash is the preferred method, securing a personal loan for vacation can actually help build your credit score. Making on-time payments on your loan in addition to demonstrating a positive credit mix can booster your rating.
Consolidating existing credit card debt into one streamlined payment with your vacation loan can also save you money in the long run. Talk to a trusted expert at your local credit union to see if a personal loan could help your unique financial situation.
Perk #4: Personal Loans Can Help You Stick to Your Budget
Savvy consumers who work hard to stick to their budget will benefit from using a personal loan for vacation over a credit card that acts like a line of credit because your funds are limited to the set amount you borrow. This will help keep your vacation spending on track and your budget in check.
More Vacation Loan Options
While a personal loan for vacation is a great idea, there are also additional options to consider for your vacation funds that may be a better fit for your unique situation. Here are a few to consider.
Fast Cash
A Fast Cash loan is a short-term loan that allows you access to funds within a few minutes! This type of loan is a great alternative to a personal loan for vacation if you need funds quickly for your getaway. You can apply for a Fast Cash loan with your credit union anytime online and the funds can be deposited directly into your account. No matter your credit score, a Fast Cash loan may help, as approval is based on membership rather than your credit history.
Allegiance members, keep an eye out! Fast Cash Loans are coming soon!
Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC)is another option to offset your vacation costs. A HELOC offers homeowners a low interest rate because it allows you to use the equity in your home to fund your trip while your home is being used as collateral for the loan.
Credit Card
Using a credit card for your vacation lets you borrow as little or much as you need to fund your trip as long as it falls within your allowed line of credit. Be sure to take advantage of credit cards that offer introductory offers that include perks like reduced or deferred interest rates, travel points, or chances to earn other rewards as a bonus for using the card.
Allegiance Can Help You Finance Your Dream Vacation
Are you ready to take the vacation getaway of your dreams? The team at Allegiance can help you plan your escape today! From personal loans and HELOCs to credit cards, your local credit union is here to help finance the vacation you want and need. If you're ready to make your vacation dream a reality, contact us to discuss your options!