Fast Money for Unexpected Vacations
Have you ever experienced unexpected vacations? For instance, your husband or wife can have a sudden work break making it necessary for you two to take an unexpected vacation and enjoy the time together.
Unexpected vacations can be categorized as emergencies that need sudden attention. One study by Bankrate showed that 56% of Americans are unable to cater for unexpected bills of over $1000. The unexpected vacations can cost even more.
What should you do in the ‘I need 2000 dollars now’ situation? Where can you get money to cater for unexpected vacations? There are various types of loans you can choose for this purpose.
COVID-19’s Influence on Travel Behavior
According to a recent study, the COVID-19 pandemic has resulted in significant changes in travel behavior across all income groups. However, these changes vary somewhat by income group.
For example, lower-income households are more likely to have reduced their overall travel, while higher-income households are more likely to have shifted to private modes of transportation. These findings suggest that the pandemic has had a differential impact on different income groups, with lower-income households bearing the brunt of the economic disruptions.
How to Get Money Fast for Vacation
1. Use Your Emergency Savings
The best source of money for emergencies is your savings. When savings are used, you’ll not encounter the stress of having a deadline to pay it back or interests included. There will also be no additional fees included such as the prepayment fees, late fees, or origination fees.
That is why it is always advisable to create a budget and allocate some funds towards savings. Experts recommend using the 50/30/20 rule when creating a budget whereby 50% of your income goes to your needs, 30% goes to your wants and 20% goes to savings.
2. Get Personal Loans
These are installment loans that are paid in set schedules. The principal amount is divided across the repayment period included with interests. The repayment period ranges from 12 to 84 months but other lenders can grant a loan shorter or longer than this period.
Personal loans are typically unsecured meaning no security should be attached during application. However, some personal loans require collateral. The collateral can be anything valuable such as a car, a house, a savings account, or jewelry.
The interest rate ranges between 6% and 36% depending on factors like your credit score, repayment period, whether you have obtained a secured loan type or not, and the lender. The loan approval and disbursement are relatively fast. You can get the loan between one to seven days after application.
Personal loans have numerous purposes including using the funds for vacation. So, if you are looking for a low-interest loan to cater to that unexpected vacation, personal loans can be a great option for this. They can be accessed from online lenders, physical banks, and credit unions.
3. Credit Cards
Credit cards will typically not have physical cash. They are used in procuring goods and services. Well, on vacations you’ll need to make some purchases. You may have forgotten to bring some staff with you for instance toiletries, some clothing, an umbrella or sunglasses making it necessary to buy them.
That is where credit cards come in. You can also use them to pay for services such as watching movies in theatres, vacation rentals, salons, barbershop services, and some restaurants or wines, and spirits venues also make use of them.
Credit cards are mostly applied online but you can decide to apply them in person or through loan institutions. In the online application you’ll be required to provide:
- Your full name
- Your contact information such as your mobile number and an appropriate email address
- Your location
- A document showing your income level
- Your date of birth
- Social security number
Credit card interest rates are variable meaning that they can sometimes increase or decrease depending on the level of economic activities. The lender should let you know the range in which the interests lie.
Since credit cards are a type of revolving loan, the interest paid will be based on the amount used during that month. A good credit score is an important factor checked during the loan application.
4. Payday Loans
These are unsecured short-term loans that should be paid by the next paycheck. They have a very fast approval time. If you are speculating about how to get money fast online, then payday loans should be a great option. Their approval time takes a few minutes to an hour depending on the lender.
Their requirements are minimal. You’ll only need:
- Proof of stable source of income
- An active bank account
- Your name and contact information
- Your residency
No credit checks are done and hence a good option for people with bad credit. The only downfall with this type of loan is the high-interest rates. Their APR (Annual Percentage Rates) ranges from 200% to over 400%.
If you lack a good repayment plan, payday loans can leave you in a huge debt cycle. Some lenders can let you roll over the payments but additional fees will be applied.
5. Credit Card Cash Advance
Credit cards are a great choice. But then, what if you need cash instead of purchase for an unexpected vacation? Well, the credit card cash advance option is a good solution. The cash advance can be applied from the credit card lender and paid together with the credit cards when the payment date is due.
The interests for this type of loan are however moderately higher than the credit cards but not as high as the payday loans. To apply for it, you must have an active account with a credit card lender. If you applied for the credit card online, you can request the cash advance online too.
If you applied for the credit card through a physical bank, it would be wise to go to the physical bank and apply it there through a bank teller. After the money is deposited in your account, you can withdraw at the bank with a cheque or at the ATM.
Unexecuted vacations are stressful especially if you don’t have adequate savings to cater for unexpected expenses. If you are facing a major challenge, then the above loans will be a great alternative.