In need of a getaway? If you’re eager to explore the world and relax but cannot pay for your holiday in one upfront lump sum, consider the benefits of taking out one of our holiday loans available in the UK.
What is a holiday loan?
A holiday in the sun can do wonders for your mental and physical health. It’s true – anyone who has escaped on a weekend getaway will say so! But that doesn’t mean that you can afford such a large upfront expense on a whim.
A holiday loan is a personal loan which enables you to spread the cost of your vacation and enjoy some much-needed time off in relaxing surroundings. Our holiday loans are repayable over a number of months, so you can pay it back in manageable installments, rather than all at once!
Benefits of a holiday loan
The upfront costs of a holiday – such as your flights and accommodation – can be daunting. If you’re worried about these costs, a holiday loan can be a great way to make payment more manageable. By spreading the cost over a set period of time, you can manage your finances month-by-month in a more sustainable manner.
Plus, our holiday loans follow a fixed payment plan, so you won’t be blindsided by any nasty changes to your payment schedule. Our fixed loan period means your loan will be subject to equal payments each month, making your money easier to manage and reducing stress on your finances.
Disadvantages of a holiday loan
If you’re responsible with your money, there’s no real disadvantage specific to a holiday loan. Like any loan, however, there are potential pitfalls – which can be easily avoided. As with any other type of loan, your loan will be subject to interest payments, and your credit score may be affected.
However, this can even be a good thing! If you consistently make repayments of a manageable size on time, you could increase your credit score, leaving you in a more positive financial position for the future.
How to apply for a holiday loan
- Click the button below to apply
- Fill in your details as accurately as possible
- Submit the form
- One of the Moneywise team will be in touch as soon as possible to confirm whether you have been successful
To apply for a Moneywise holiday loan, you must:
- Be aged over 18
- Agree to Moneywise Credit Union rules
Holiday Loan Calculator
Holiday loan example
If you were to take out a holiday loan from Moneywise, your repayment schedule and cost of credit could look like the below.
You borrow: £300 loan
You pay back: £6.90/week over 52 weeks
Total repayable: £357.24
Cost of credit: £57.24
Fixed interest rate of 36% – APR 42.58%.
- We’re a non-profit, so we keep our interest rates as low as possible
- We have competitive loan rates, so you can repay responsibly
- Because we’re members-only, we offer a safe way to build your credit history
Holiday loan tips
Here’s some tips to ensure that you can deal with your holiday loan in the most sustainable manner – both whilst you’re enjoying your time off and afterwards!
- Do your research
- You could save money by switching hotel providers.
- Book in advance
- Grab the best deal by booking your holiday plenty of time before the date.
- Set a holiday budget
- Make sure you don’t overspend on food and drink!
- Be careful with ATMs
- If you’re going abroad, be careful with ATMs and their exchange rates. Be sure to check your bank’s rates for withdrawals.
- Budget for your return
- How will your holiday loan repayment plan fit into your monthly budget?
- Be responsible
- Only borrow an amount that you’re certain you can repay.
Frequently asked questions
Here at Moneywise, our team considers multiple factors before approving loan applications.
A. Is it affordable?
The first thing we consider is – is it affordable? We want to make sure that if we’re taking repayments for a loan, you’ll be able to keep up with this loan and your other commitments.
B. Is it realistic?
Next, we’ll consider if the loan repayment schemes are realistic. We do this by checking if you’re up to date with your rent or mortgage. We also look whether or not you’re making repayments for utilities and council tax. If these payments are up to date, we’ll see if you have enough disposable income to cover these – plus our loan repayment on top.
If your bank statements show low balances, for example, we will assess the situation further. This helps us understand if all your spending is necessary. If you’re spending lots of money on takeaways for example, we may suggest a change in spending habits to ensure you’re able to make repayments.
C. Is your credit check acceptable?
If we’re happy that the loan is affordable and realistic, we may also need to run a credit check on some of our loan products. We’ll check the credit report to see if there are any active CCJs. If so, are they recent and are you repaying them?
We’ll continue to look over your current and previous credit accounts. This will make sure that each statement is up to date and you’re making regular repayments.
Interest rates vary! Most loans are set at a 3% interest rate (42.60% APR). This is for new and existing members, and family loans will always be set at this rate. We offer payroll members loans with a 2% interest rate. We might also offer lower interest rates due to length of membership, the amount of savings you hold with us and if we’ve offered a secured loan.
If you’re worried about repaying your loan on time, contact our team as soon as possible.
It depends on your situation. If this is a short-term issue where one or two payments are going to be missed, we may be able to cover these from savings already held with us. If not, an agreement can be made with our credit control department to either temporarily reduce payments, or for the payments to be made at a later date.
In cases where this is a long-term issue, you’d be able to discuss your best options with our credit control department. The team will help you come to an agreement about how to pay going forward.
If your application is successful, our team will help you set up the details and repayments of your account. You’ll also be provided with information on how to access your savings, keep track of your loan balance and, if you request it, offers and advice on topping up.
If your application is unsuccessful, we’ll provide you with information on setting up a savings account. Our team will also offer guidance on any other financial assistance we are aware of that may be available at the time. Finally, we also provide details of other support services, such as the Citizens Advice Bureau, that may be able to help you.
There are multiple reasons why your application may have been declined:
- if you currently have an active individual voluntary arrangement (IVA), debt relief order (DRO) or are bankrupt
- if it is not affordable for you to make the repayments (see above)
- if you have recently missed repayments on an existing loan with us
- if there is a decline in your credit report
To find out more, contact a member of our team and we’ll explain your circumstances.
Yes. Whether you’re in full-time employment or in receipt of benefits, anyone is eligible to apply for a Moneywise loan if you meet our requirements, including living or working in the North East.