What is a travel credit?
The travel credit , also called leisure credit, is a type of consumer loan. This is a Bobbsey Twinsment solution intended for one purpose: to pay for a travel project, whether it concerns the costs related to the hotel industry, renting, moving, etc. Thus, taking out a travel credit can enable you to obtain the necessary budget for the preparation of your trip, but also to the expenses that you will have to assume on the spot.
The principle is as follows: in exchange for the travel credit granted to you by the establishment of your choice, you agree to repay the credit, plus an interest rate defined in the contract.
The conditions of the travel loan
Like all types of consumer credit, travel credits are granted under regulated conditions, namely:
- An amount of up to € 75,000 ;
- Legal duration equal to or greater than 3 months ;
- A legal withdrawal period of 14 days for the subscriber;
- The duration and method of repayment vary depending on the lending institution and your repayment capabilities.
Where to take out a travel loan?
To subscribe a travel credit, you can turn to different structures: your bank is particularly able to offer you one, but also credit organizations. You are free to choose the loan facility that suits you best.
Criteria for obtaining a travel credit
A travel credit is not automatic: once you have applied for a loan, you must wait for acceptance from the institution you have chosen. To decide whether to grant you the travel loan or not, the latter evaluates a set of elements, among which:
- Your personal situation : family situation (married, pacsé, single, divorced etc.), the composition of the home, owner or tenant …;
- Your employment situation : employment, retirement, unemployment, type of employment contract (permanent contract, fixed-term contract, temporary work) …
- Your income : wages, dividends, annuities, allowances, retirement, allowances …
- Your debt ratio , any other outstanding loans, especially to evaluate your borrowing capacity …
All this information about your situation will have to be justified by official documents. If you are eligible, they will allow the lender to offer you the most suitable travel credit for your profile.
The different types of travel credits
Depending on your situation and your needs, you can choose between different types of travel credits: the assigned loan or the personal loan.
The personal loan
The personal loan , or personal loan, is an unallocated loan, which means you can use the money that is loaned to you for any expense. Thus, you enjoy a great freedom of use of this money during your stay and do not have to account to your lending institution.
The assigned loan
The loan allocated , or assigned credit, is instead intended for a type of expense clearly defined in the credit agreement. For a travel credit, the sum lent must be dedicated to the preparation and booking of the trip. Funds are usually paid directly to suppliers (tour operators …) and not to the borrower. It is therefore not possible to create a personal cash with this type of credit.
Travel credit: the elements of the offer
A travel credit offer gives you various information:
- The total cost of the travel loan, expressed in euros;
- The APR , or annual percentage rate of charge: it represents the total cost of your travel credit in percentage, taking into account ancillary costs, such as interest, contributions, fees, opening fees, commissions, etc. It replaces the TEG (overall effective rate);
- The duration , ie the number of months during which you will have to repay your travel credit by paying monthly installments;
- Monthly payments , which is the amount you have to pay each month to your bank or credit institution.
To avoid over-indebtedness, make sure that your monthly payments do not represent more than a third of your income. Beyond that, you jeopardize your ability to repay your travel credit!
In some offers, the amount of loan insurance, or borrower insurance, is also mentioned. Note that loan insurance is optional: everyone is free to choose whether to subscribe one or not. This allows you to cover your repayments if you were no longer able to assume them (for example in case of illness, death, disability …).
How to find the best travel credit?
To find the best travel credit, it is already important to have a clear idea of your project. What kind of trip are you preparing? Between a one-year world tour or a trip of a few weeks, the costs will not be the same. In the same way, which are the destination (s) of your choice? The total amount of the travel loan will vary widely between distant destinations or nearby destinations or between countries with high or low standards of living.
Once your project is well defined, the easiest way to find the best travel loan is to use an online travel credit comparator !
Compare Travel Credits Online
Not always easy to see clearly in the travel credit offers. Good news: online loan simulators like Bobbsey Twins.fr are here to simplify things! They allow you to quickly visualize all credit offers available to you, according to the information you have previously provided. In this way, you avoid wasting time looking for all the offers on your side and you save money by easily finding the cheapest travel credit.
How to compare travel credits?
Comparing travel credits is as easy as fast! On Bobbsey Twins.fr, fill in some practical information about yourself and your personal project (your situation, your income, the total amount you want to borrow …). In just a few minutes, you can access an online quote page, gathering the best travel credit offers for you.
You just have to compare the offers by evaluating their interest rate (APR), their total cost as well as the amount of the monthly payments and the total duration of the loan.