Published: 01/08/2022

How to spread the cost of your holiday


Looking to head off to the sun? If you can, it’s best to use savings to pay for your holidays. However, if you can’t rustle up the cash, a personal guarantor loan from 1Plus1, or holiday loan, means you can spread the cost of your holiday. 

A holiday loan is suitable for those special holidays such as honeymoons or anniversaries

Holiday loan plusses.

Fixed payments: Just like going all-inclusive, a fixed-rate holiday loan means you know when and how much you have to pay, helping you budget accordingly. This is not the case if you choose a variable-rate loan. 1Plus1 guarantor loans are fixed rate.

Fixed term:  Choose how long you want to pay it back over. A shorter term means you pay less interest; longer term means lower monthly repayments but may cost more overall. Think about whether you want to be paying back this year’s holiday loan when you are looking again next year!

Flexible spending on holiday: With a 1Plus1 loan you can spend the money using your debit card or withdraw the cash from your account, saving money. This isn’t always the case with credit cards, that usually charge for overseas usage and cash withdrawal.

Holiday loan negatives

Higher costs: Because of interest charged, your holiday will cost more. If you have a poor credit score, this is particularly true as you won’t qualify for the cheapest loans

What do holiday loans cost?

This will depend on:

Fees and charges: Are there any extra fees, such as early repayment or arrangement charges? Here at 1Plus1, we don’t charge a fee to apply for a loan with us or early repayment fees.

Interest rate: The overall interest rate is given as an APR (Annual Percentage Rate) that includes any extra fees and charges.

Loan term: If you repay your loan over a longer period, you will generally pay more interest meaning your holiday will cost you more overall.

Credit history: At 1Plus1 we decided it was time that someone offered a loan that didn't rely purely on credit scores – just on whether customers could make the repayments without any hardship or problems for the duration of the loan.

We make sure that all our customers can afford any credit we give them.

How do I apply for a holiday loan?

1Plus1 offer personal loans backed by a guarantor, subject to both the borrower and guarantor meeting our affordability and credit worthiness criteria.

If you think you may be interested in a 1Plus1 Loan, please give us a call on 0330 1200 313 and one of our friendly staff will be more than happy to discuss the process with you, or start your application here.