Published: 19/08/2021

Should I pay for my holiday with a personal loan?


It’s best to use savings to pay for holidays. But if you don’t have that option, a personal guarantor loan from 1Plus1, or a holiday finance, lets you spread the cost of your holiday.  We all want to get away, but current restrictions make it difficult, and testing adds to the costs. Some firms offer package holidays with testing packages included.

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

The plus side of a holiday loan

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

Fixed term:  You can choose how long you need to pay it back with a personal loan. A shorter term means you pay less interest.  A longer term means lower monthly repayments but may cost more overall.

Flexible spending: 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.

The downside of a holiday loan

Higher costs: A holiday loan will, due to the interest charged, increase the total cost of your holiday. Borrowing elsewhere, if you have a poor credit score, this is particularly true as you will not qualify for the cheapest loans

How much will a holiday loan cost?

The cost of your holiday loan will depend on:

Fees and charges: Are there any extra fees, such as early repayment or arrangement charges? Here at 1Plus1, we do not 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 decide to repay your loan over a longer period, you will generally pay more interest meaning it 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.


Last updated: 25/08/2021