You’ve been waiting all year for this moment, you’ve looked at destinations and you’ve finally decided where you want to go on vacation. There is only one small ‘but’, your dream trip is out of budget. What can you do? At that point is where the option of pay the holidays in installments and the different ways to do it. And with them, the doubt Is it better to finance the trip with the agency or ask for a loan from the bank?
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How to finance a trip and pay it in installments
There are three ways to pay for a trip in installments:
|Finance the trip with the travel agency
Today many large agencies offer loans to pay for the vacations you hire with them, although not for all your trips. The more expensive the destination, the more options you will have of having the option to finance it.
|Finance the trip with a bank loan
This is the most versatile option to pay for your trip in installments, as you have more flexibility to choose the amount to finance, the payment terms …
|Finance it with your credit card
This is the simplest option. However, just because it is easy does not mean that it is the best option. On the one hand, the amount you can finance will depend on the card limit. On the other hand, if you choose to pay it in several months and not at the end of the month, it is a more expensive form of financing than the other two alternatives.
What types of trips can be financed
With a personal loan you can finance any trip, while the options with travel agencies are more limited.
The trips that agencies usually finance include end-of-term trips, study trips, honeymoons, and cruises and other organized trips. In addition, there are also some online agencies that allow you to finance travel packages that include the hotel and the flight.
And the flights? Can flights be paid in installments? For now airlines do not allow deferral of payment on flights. If you want to finance the flight, you will have to do it as part of a package with the hotel.
Where can I finance a trip? Bank vs agency
When financing a trip, what are the advantages and disadvantages of doing it with the bank or with the agency?
Finance with the agency
Loan at a bank
|Amount to finance||Financing is limited to the cost of the package you hire||You can finance the entire trip, not just the package offered by the agency|
|Term||Deadlines are usually shorter||You can choose to repay the loan in a longer term|
|Type of interest||Sometimes they allow deferred payment without interest, although they may have associated commissions||Generally, interest rates and fees are lower|
|Early repayment||An early repayment is not normally allowed or the commission is higher||You can make a partial or total amortization whenever you want|
|Ease of opening||It is comfortable, since in a single step you hire and finance your vacations||Sometimes, it may be necessary to contract other products from the bank, such as opening an account|
|Access to information||As the agency is an intermediary, it is more difficult to access your loan information, such as terms and outstanding capital||You can easily access the information about your loan, such as the term and outstanding capital|
Finally, when deciding whether finance the holidays with the agency or ask for a loan from the bankIt is also necessary to consider that it is possible that the price of the trip is more expensive in those agencies that finance it. In this way, even if the loan has good conditions, if you can get the same cheaper package elsewhere and ask for a loan from your bank to finance it, you are likely to save money.
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