What are cruise loans?
Cruise loans are a type of personal loan that can be used to fund cruise holidays. In the last few years, cruises have become a trendy holiday choice for Australians. Perhaps it’s the appeal of just simply hopping on board or the excitement of seeing many exotic destinations without the hassle and logistics. For many people, the dream stops at the cost – which is where cruise loans come in.
Who offers cruise loans?
Once you’ve found your dream destination and you’re ready to set sail, it’s time to start researching who offers cruise loans. There is no shortage of cruise loans on the market. Both traditional lenders, like banks and credit unions, as well as non-traditional lenders, like online or peer-to-peer marketplaces, offer cruise loans and holiday personal loans. Depending on your credit history, the amount you’re looking to borrow and your relationship with your existing bank, you’ll have plenty of cruise loans to compare.
How do you take out cruise loans?
Before you take out a cruise loan, always do your research. Some travel agents and cruise companies may offer a finance option, but always read the fine print to make sure that the interest rate and terms are comparable with other cruise loans on the market. Once you’ve found a cruise loan that suits your needs, you can click through to the lender's website and apply to take out a cruise loan.
Can people with bad credit take out cruise loans?
People with bad credit can take out cruise loans. Traditional lenders tend to have tighter lending criteria, so people with bad credit may be able to take out cruise loans through non-traditional lenders. Each lender will have their eligibility criteria, so always do your research.
If you’ve already got an outstanding debt or you have a history of bad credit, taking out cruise loan may escalate your bad credit. Borrowers with bad credit should make sure they can afford to make the repayments before taking out cruise loans.
How do you compare cruise loans?
Before taking out a cruise loan, be sure to shop around and compare your options. Start by comparing the type of cruise loan you want to take out and whether it’s secured or unsecured. Make sure the interest rate is competitive, and compare your options with both a fixed and variable interest rate.
When comparing cruise loans, always make sure you check what fees are attached to the loan. Cruise loan fees may include establishment fees, monthly or annual fees, late repayment fees or any penalties for paying off the cruise loan before term.
What are the pros and cons of cruise loans?
Much like all types of personal loans, cruise loans have pros and cons. Aside from going on your dream cruise, cruise loans do have some advantages. When compared to credit cards, cruise loans generally have lower interest rates, and you can often borrow larger amounts of money which can be paid back over a longer period. As the loan amounts is capped, you don’t have the option to impulse spend the way you could with a credit card.
When it comes to cons, cruise loans are still a form of credit, which means you’ll be charged interest and, depending on the term you choose, you may be paying off the cruise loan long after your holiday has ended.