Travelling abroad can bring new experiences to those who suffer from wanderlust. The thrill of being in a new city or even eating from a diverse culinary palate can make travelling wonderful. Visiting the numerous historical landscapes and museums can make a traveller throw caution to the wind all in the hopes of just learning about the evolution of other civilisations.
When travelling, though, there is nothing more insecure than not having secure funding. You can go into serious credit card debt to fund a trip, but an easier way to fund your trip would be to secure a travel loan. A travel loan, such as Latitude travel loans, can help you fund both domestic and foreign travel, and often the rates are cheaper than credit card interest rates.
Let’s take a look at how you can utilise travel loans to stay financially secure on your next trip abroad.
About Travel Loans
Travel loans are simply obligations that one would take out to pay for a trip, in this case, a trip overseas. While they do have a few types of travel loans, the type you would apply for to travel abroad would be a foreign travel loan. This type of loan covers airfare, bus or tram fare, accommodations, meals, sightseeing, and any travel-related expense.
They are sometimes a better option to using credit cards because the interest rates are sometimes lower. In addition, if you have more than one credit card you plan to use, it is much cheaper to go with a travel loan to avoid paying on more than one interest rate. Check out a few financing companies, to see some of the benefits of funding a trip this way.
The Advantages And Disadvantages
The advantages to funding a trip this way are that the repayment terms tend to be a little more flexible, do not require any type of collateral (home, car, etc.) and the application process is much more convenient and quick; some being able to deposit the money into your account within days. Furthermore, depending on your credit, borrowers usually are approved for the amount they request.
Conversely, the drawbacks to travel loans are that they might charge cancellation and modification fees. Also, you might find that with interest added to the loan that you have paid way more than what was needed to fund the trip. Finally, while the loan is considered soft credit, it still is a mark on your credit report.
With travel loans, the funding goes right into your account, so you should be able to access your funds from anywhere in the world. You can use these funds much in the way you would a debit card with one of the major credit card logos.
Also very significant is these funds can be withdrawn from your account, so you do not necessarily need to use your debit card to pay for items. You can withdraw cash and travel without fear of being short on money. Alternatively, you cannot use credit/debit cards, and sometimes, eateries, bazaars, and other outdoor markets only take cash. Travel loans, ultimately, provide you with the convenience of using both cash and debit card currency while travelling without being charged for taking a cash advance as is the case with credit cards.
The Convenience Of Travel Loans
While credit cards are not necessarily obsolete, they are not as flexible when travelling abroad. Travel loans can make travelling abroad a better experience just because you are not bound to using a debit or credit card. The convenience of these loans allows you to enjoy your trip without the hassles of worrying about whether a venue will accept particular forms of payments.