Money: What Is A Bad Credit Vacation Loan?

Getting a bad credit history can happen, no matter if you’ve done your utmost to avoid it. If you have a bad credit history, getting a loan can feel impossible, making things like jumping on a plane or buying a new car seem completely out of reach.

If you’ve got a bad credit history, most banks will turn you down as you are considered high-risk and “not creditworthy”. This can mean that you have to save up for years to pay for things – or do without them completely.

Don’t think that having bad credit will stop you from enjoying life’s pleasures. If bad credit is stopping you from acquiring assets like a car or going on holiday, you’ll be happy to know that services like Nakedloans Bad Credit Car Loans can help you sort this out.

Keep reading to find out how you can get a loan for your next trip.

BAD CREDIT VACATION LOANS

#1 – What Are Bad Credit Loans?

As the name suggests, loans for people with bad credit is a personal loan that provides money to people with a poor credit score. It’s worth mentioning that bad credit loans aren’t only designed for people with an imperfect credit score. They can also be used by anyone with little to no credit history such as people just entering the workforce. But if you’re in this position there is hope.

In general, financial institutions such as banks are hesitant to grant loans to people without a well-established and impeccable credit report.

#2 – How Can I Get A Vacation Loan With Bad Credit?

First of all, if you do have bad credit, you are not alone. A credit reporting agency called Veda has found that 600,000 Australians are at high-risk for credit default. This means that they mightn’t be able to make all their payments on time – often due to circumstances out of their control.

#3 – Steps To Getting A Vacation Loan

The first thing you should do before applying for a loan is to look at your credit score and try your best to improve it.
If you have a last-minute trip coming up, don’t stress – getting a vacation loan is still possible!
Make sure you have the following documents:

A copy of your ID or passport
Proof of address
3 months’ worth of bank statements
Proof of income (For example, a payslip or income statement)

Top tip: Don’t apply for several different loans at the same time. You may want to ‘shop around’ and get the best quote, but having multiple enquiries active at the same time can hurt your bad credit even more.

There are several lending services that offer personal loans for Australians with bad credit. We recommend looking reputable lenders like this one, who are known for helping people get money in a short amount of time with little hassle.

#4 – Is A Vacation Loan A Good Idea?

Is travelling with borrowed money a good idea? Well, this all depends on your financial situation and personality. Before you go any further, be realistic. Ask yourself if you will always be able to pay back a personal loan (plus interest) on time. If the answer is yes, making use of bad credit loans to fund your travels might be worth looking into.

Why? Because when you stick to your loan term you can use this as a way to improve your credit score or establish one. Another reason why vacation loans or an unsecured personal loan could be beneficial is for travel emergencies. This can come in handy for a last-minute trip to visit family, attend a wedding, or for business purposes.

#5 – Your Bad Credit Loan Questions Answered

Q) Do I have a bad credit report?

A) Have you applied for more than one loan and been declined every time? There’s a good chance that you have a bad credit score (a number usually below 600) which is preventing you from receiving finance. You can check your credit record through a credit reporting bureau such as Equifax – it will only take you a few minutes.

Q) Can I apply if I have been declared bankrupt?

A) You can only apply for credit personal loans at least 12 months after you have been discharged from bankruptcy or a Part 9 Debt Agreement.

Q) Will I have bad credit forever?

A) Fortunately not. But that is entirely up to your financial habits. It may take a few years to fix your credit, but paying all of your bills and loan repayments on time every month will help you to make a positive change.

Q) How long does a default stay on a credit record?

A) A default can drag your score down significantly. These occur when the amount you owe is above $150 and more than 2 months overdue. Defaults can stay on your credit score for 5 years, however if the lender deems it a clearout (they believe you had no intention of paying it back) it will stay on your record for 7 years.