We all looked at our old photos, travel journals, and suitcases during the first lockdown and felt nostalgic, which was when we all wondered, “When will these times return?”
Although it took us some time to transition into a post-COVID state of normalcy, we are certain that we have survived the worst. If not, we are better equipped to deal with whatever the future brings.
As people begin to make post-COVID travel arrangements, the lifted lockdowns provide relief for the travel and hospitality sectors. People are returning to vacation mode because of the uncertainty around COVID-19 and the monotony caused by the lockdown.
How can one finance their post-COVID vacation? Will holiday loans be the best option? Continue reading to learn more.
How might a holiday after COVID look?
While restrictions remain in place, adverts for travel agencies have appeared more frequently recently. Reports indicate that holiday bookings are on the rise as people look beyond lockdowns.
Travel conditions based on COVID-19 will make holidays more difficult in the future. This could include measures such as requiring vaccinations. This could limit the number of foreign travel options available to those who have not received the vaccine. It could even impact people’s ability domestically to travel. Travel will be affected globally by economic issues, as many people lost their income due to the pandemic.
These challenges will influence our choices when choosing a holiday. The days of selecting holidays based on attractions or destinations will soon be gone. Both the industry and travellers will instead be more concerned about their personal needs.
Can holiday loans help me pay for my post-COVID vacation?
To fund your post-COVID vacation, you can get a holiday loan. You can get a holiday loan as an unsecured personal loan to finance your holiday. You can borrow a holiday loan for amounts between £1,000 and £35,000. A holiday loan isn’t secured by collateral so that a lender will charge a high-interest rate.
If you have excellent credit, the interest rate will likely be lower. The lender can’t take your property or any other valuables if you default on the loan. Your credit score could be seriously damaged if you fail to make your payments on time. The lender could also file a complaint against you. You may receive a CCJ if you fail to repay the lender what you owe them.
How can lenders determine eligibility for holiday loans?
Below are some factors that almost all lenders in the UK consider.
Minimum Age: To apply for a personal loan, you must be at least 18 years old. No one can enter into a lending contract under 18 years old. Borrowing a loan is financial responsibility.
UK Resident: Must be a UK citizen. You will need to sign a legal agreement with the lender when you apply for a loan. Lenders will not accept loan applications if you are not a UK resident.
Credit score: Good credit score is required. When a lender receives an application for a loan, they first assess the applicant’s credit history. This is because lenders need to evaluate your risk before they lend you the money.
The Debt to Income ratio: This ratio provides a clear insight to the lenders about your gross monthly earnings and how much you pay towards your debts. The lower your DTI ratio is, the more your chances are for the loan application approval.
Employment status: Simply checking your credit history won’t suffice. Lenders will focus on your income source. Lenders will deem you a better fit for a loan if you are employed and receive a regular salary to pay the debt.
How can I save money on my post-COVID holiday?
- Reduce unnecessary expenditures
- Save money for travel.
- Automate your savings so you can save a certain amount every month.
- You should set a budget for your trips, taking into account contingencies.
- To save money on your tickets, you can use credit card points and count your miles.
- Look out for low-cost flights.
Tips to make your post-COVID holiday hassle-free
- Consider getting travel insurance: Covid-19 can make travel plans unreliable even when the economy picks up. If you have to cancel your trip, travel insurance can protect your finances. Some credit cards offer travel insurance. However, not all cards do. Consider other travel insurance companies if your card does not provide insurance.
- You should check the cancellation policies of your airline: Airlines have relaxed cancellation fees and procedures throughout the pandemic in an effort to attract more travellers. These new policies won’t last forever, however. You should confirm the current policies of your airline before you book. If your airline’s policies aren’t flexible enough, you might consider switching to a more flexible carrier.
- Check for restrictions on travel to your destination: Most likely, the restrictions at your hometown will be different from those imposed at the destination. Be sure to check the travel restrictions at your destination before you leave on your trip. This will help you have a pleasant vacation.