How to finance your summer vacation
Good Finance, the online financial services comparator that calculates the credit score, explains the different alternatives when it comes to financing our vacations.
When summer comes, social networks begin to flood with posts with photos in idyllic destinations, inside and outside our borders. It seems that long-distance travel is no longer only restricted to a few, and the different financing possibilities that exist in the market make traveling easier and easier.
Each Spaniard will spend around € 1,800 on average on his vacation this summer, according to the Ipsos Vacation Barometer, carried out by Good Lender. To face the payment, Good Finance recommends, first, to know how much money we already have and how much we would have to finance (usually the lower the amount to be financed, the interest will be lower). Once we know how much money we have left to pay for that dream trip, we can already assess the different possibilities we have within our reach.
Direct payment, that is, our savings, is the most common method of paying for our vacations. Good Finance recommends, first of all, to take into account the expenses associated with the payments in foreign currency of our bank account. Many times we do not give importance to commissions on currency transfers, for example, when we are going to book that hotel in the United Kingdom or pay for that excursion in the Norwegian fjords. These hidden fees or charges can give us an unpleasant surprise when we check the bank statement after the holidays. It is best to always compare the different market options to see which one interests us most.
Direct payments aside, the credit card is probably the most common method of paying for a trip, and of course, there is no shortage of reasons: obviously you can pay in installments, and it also offers a high degree of protection against fraudulent purchases on the internet. It should also be remembered that car rental companies only accept credit cards, as do many hotels as a payment method for deposits. Some providers, such as TarjetaYou, offer additional advantages such as free travel insurance. Conversely, it is also important to know the commissions for withdrawing cash from an ATM when we are abroad, especially in countries with a currency other than the euro. In any case, it is best to inform yourself about the conditions of the card you have and always compare to see if there is something better.
Loans are not an option to be dismissed when financing vacations, especially if we are considering a slightly more premium trip. With the loan you can get more liquidity than with the credit card, and you can also consider the repayment conditions specifically: you can choose how much you borrow, when to return it and the interest. It is also a good option if you only have a debit card and do not want to commit to a credit card. From Good Finance we recommend, however, carefully read the particular conditions of each loan.
Going on vacation to an exotic place is not as difficult as it seems if we control well the expense we are going to incur and adapt it to our specific needs. There are different financing methods within our reach that are there for these things, and it never hurts to compare and see which one works best for us.
About Good Finance
Good Finance is an online comparator of financial products that calculates the credit score. In its commitment to the latest technology, it has launched the first tool that allows to know the probability of acceptance of a financial product without having to make a request with the corresponding provider.