According to a study carried out by Cofidis with the CSA institution, nearly 8 out of 10 British people have already used a bank loan or another organization specializing in loans to finance their projects. Also according to this study, 1 in 5 British people would borrow money from a bank or credit organisation at least once a year, for an average amount of £4,800. This shows that borrowing is part of the British people’s habits, even if many view this practice negatively, because the interest rate is considered too high. While credit is in most cases used to finance personal property, as well as the purchase of a car, the number of British people taking out personal or consumer credit is tending to increase. This type of credit is generally used to finance the purchase of household appliances, computers, telephones… But you can also take advantage of it to take a trip! Today, I’m going to shed light on personal credit and the criteria to be taken into account when choosing it.
What is meant by personal loan?
A personal loan is a good way to finance any type of project, except the purchase of real estate. It is therefore particularly suitable for financing a trip.
It is an unassigned consumer loan, which means that you do not need to present an invoice or other proof of use to obtain a personal loan, unlike an assigned loan. It simply meets a household’s liquidity requirement. You are free to decide how much you want to borrow, regardless of the purpose of the loan. Most banks and other lending institutions offer personal credit, but the repayment period will range from 3 to 84 months, depending on the amount you borrow and your ability to repay.
Why take out a personal loan to finance your trip? Because the conditions are fixed, and therefore remain stable throughout your contract. You will know in advance the amount you will have to pay each month and the duration of your repayments. Another advantage: the interest rate is much more interesting than that of other credit solutions, to mention only the revolving credit! The cost of the Annual Percentage Rate of Charge (APR) depends on the duration of your repayments, but it does not increase along the way, as it may with other financing solutions.
The faster you repay, the lower your interest rate will be. Personal credit is governed by the Consumer Code. Its minimum amount is £200 and the maximum amount is £75,000, but some loan organisations and banks can apply their own minimum and maximum amounts and repayment periods without however derogating from the Consumer Code.
Why take out a loan to go on a trip?
The world is full of wonderful places just waiting to be discovered. If, like most British people, you dream of travelling to discover the world in all its splendour at least once in your life, or to explore job opportunities, personal credit is the solution to make your wish come true. You don’t have to wait years to save before you can live your dream.
You can obtain financing shortly after you apply for credit without having to provide any proof of your application. Some organizations offer to give you an answer within 24 hours. With personal credit, you have the option of withdrawing within 14 days of signing the contract if you change your mind. Once this period has passed, the funds can be released and all you have to do is pack your bags, provided of course that you have already chosen your destination. The lender has 7 days to give you an answer to your credit application. In general, the first monthly payment is taken the month following the signature of the contract. To get an idea of how much you can borrow and how much you can repay, you can use the personal loan calculation tools on Younited Credit.
Choosing the right personal loan to travel with peace of mind
To enjoy your trip with peace of mind, you’d better choose the right personal loan. While the bank is the best known and most sought-after financing solution, the British are currently turning to other solutions in order to benefit from a lower interest rate. In any case, you will need to compare several offers in order to find the best one. To do this, you can call on a broker, who will be assigned to act as an intermediary between you and the financial institutions. This will ensure that you find the credit that best suits your needs and situation and will make the competition work for you.
On the other hand, you are able to find an advantageous travel credit without having to resort to a third party. All you have to do is do your own research, using the Internet. It is currently possible to apply for a personal loan 100% online and do all the necessary steps without having to leave your home. You can also sign the credit contract at a distance. Convenient isn’t it? You’re probably wondering whether this is really a reliable and secure solution. I’ve also asked myself this question, just like you. Then you should know that there are serious online banks offering personal loans! Not only does this solution save you from having to travel, but it also allows you to take out a personal loan fairly, transparently and as quickly as possible with an innovative system.
Choose an online bank that has a banking license, which will allow you to be sure of the seriousness and reliability of the platform. It also gives you peace of mind regarding the protection of your personal data.