Sometimes you just need to take a vacation or get some extended time off work to renew the mind and body. But, travel is expensive and it may be difficult to save enough to fund a vacation, or even a sabbatical.
Most people start by building a vacation savings. Using a Santander Bank savings account, you can set aside money to use for that dream vacation. By setting and following a budget that allows you to save money each month, a vacation is reachable in time. However, if you can’t save fast enough to reach that goal, it may be better to use a personal loan to finance a vacation, rather than putting the vacation on a credit card.
Vacation financing with a personal loan
Financing a vacation may be as easy as taking out a personal loan. A personal loan is an unsecured loan, which gives you a fixed amount and has predictable monthly payments. Your eligibility and interest rate depend on factors like your creditworthiness and income.
The benefits of personal loans
Understanding how to finance a vacation using a personal loan requires some careful consideration before you sign the dotted line. Here are some of the benefits to using a personal loan to pay for your vacation.
- Fixed monthly payments – A personal loan from Santander Bank, whether it is used for a vacation or not, has a fixed interest rate and monthly payment. These are set when you acquire the loan and continue for the life of the loan. There are no penalties if you pay the loan off early with Santander Bank.
- Interest rates may be lower than credit cards – When you finance a vacation using a personal loan, the amount of interest charged may be lower than offered by a credit card. It is not uncommon to see credit card interest rates near, or even above 20%. Special low or no-interest introductory periods on credit cards may not afford you enough time to pay off the entire debt before the low-interest period expires. However, since many factors go into determining the rate you qualify for, make sure you understand the rate and repayment terms.
- More time to pay off the debt – Santander Bank offers personal loans up to a 60-month term. This means that a major vacation or sabbatical can be paid off a little at a time in monthly payments, spread out over a 5-year period.
Contact a Customer Service Center Advisor today at 877-768-2265 from 6 a.m. to 10 p.m. ET, seven days a week to discuss what options may be available to you to finance your vacation. Loans through Santander Bank are based upon your individual credit worthiness and financial profile. Please note that this information is intended for Santander customers in the United States; different rules and regulations apply to our customers in the European Union.
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