A 2017 LearnVest survey found that 74% of respondents went into debt to pay for a vacation with the amount averaging $1,108. A personal vacation loan is an installment loan. This means you will have fixed monthly payments. Unlike a credit card or a line of credit, a personal loan is repaid over a fixed period of time, known as the loan term.
Additionally, the interest rates on personal loans from Mars Bank are always lower than credit card interest rates. Your exact loan terms and rate will depend on a number of factors. Contact a personal banker to discuss your situation.
Credit cards, on the other hand, can have steep interest rates. If you put your vacation on a credit card with a high interest rate, you could end up paying quite a bit more to finance your getaway.
For example, if you put a $5,000 vacation on a credit card with a 20% interest rate and it takes you two years to pay off the amount, you’ll end up spending more than $1,100 on interest alone. Credit cards typically have double-digit interest rates and carrying a high balance can negatively impact your overall credit health.
A credit card may have an interest rate that is three or four times higher than a typical personal loan from Mars Bank. With those very different numbers in mind, if you need to borrow, a vacation loan from Mars Bank has lower interest rates and a set term for when you will have everything paid off. You’ll have a plan in place before you leave for your vacation.
Ultimately, we want to help you create the best plan for how you are going to finance your vacation. If you have any questions about vacation loans or want to apply for a vacation loan, contact us today.