We all tend to get excited about a trip! Who doesn't? The thing is, while we're getting immersed about what to do out of town or abroad, we tend to neglect to give the same care with our financial planning.
You don't have to worry about how you can be financially secured on your travel, though. We've got you covered here! Here are easy-to-do monetary-related actions you should keep in mind before spending your vacation.
Poor Credit Score? Apply for Vacation Loans
Your creditworthiness is usually assessed based on your FICO (Fair Isaac Company) scores. Your FICO score is profoundly affected by the types of credits you're indulging in, your length of credit history, payment history, current debt burden, and the like.
The better your credit score is, the higher the chance you can make a loan. As we all know, FICO scores are labeled as poor, fair, good, very good, and exceptional. The bracketing of score differs depending on the current credit score trends. Here are the recent credit score categories:
Exceptional - 800 and higher
Very good -740-800
Good - 670-740
Fair - 580-670
Poor - 580 and lower
For the past few years, FICO scores have been in a constant rise, specifically hitting 700 in 2017 then 704 in 2018. These credit score trends are influenced by many factors, including one's age, careers, credit history, and income.
Now, you want to travel. Let's say you want to have a trip abroad. However, you're financially incapable, and you don't have enough credit scores to borrow money. That's a big problem before, but not anymore. The following are vacation loans you may get to kick back and relax for a week or two, regardless of your poor credit scores.
Personal Loans. Companies like Credible can help you find a good deal on a personal loan no matter how poor your credit score might be.
Same Day Loans. This loan type is best for vacations on a whim.
Installment Loans. This type can aid in making vacation reservations locally or internationally and allow you to pay the fees off over time.
Online Loans. You can apply for a loan right from the privacy of your own house.
You shouldn't spend time worrying about your bad credit scores when you want to travel. First, you can avail FICO scores as many as you can. Different lenders will separately use each of them. There are many alternatives that you can do, even with a bad credit score. You have to search for them patiently. Often, they are hard to find, but they are time-worthy.
Opt to Travel-Friendly Debit or Credit Cards
Nothing is created equal. Credit cards on foreign exchange fees are not an exemption. A lot of travelers, generally card-holders, don't realize that they're being charged 2-4% every time they purchase products abroad with the use of their country's cards.
What's more, several banks charge a considerable amount of fees when bank customers withdraw money from out-of-network ATMs. You could have avoided this when you consider getting travel-friendly cards, which neither charge you of using-other-banks fees nor foreign transaction fees. Other cards can even give you discounts. Choosing the right card is the key.
Ensure You're Insured
If you don't have travel insurance, get one to be safe. Travel insurances can save your day when there are unexpected vacation-specific expenses. These insurances can cover your canceled trip, medical costs, theft of belongings, as well as travel inconvenience. Ensure that you're already insured and made the necessary arrangements before leaving.
If you already have one, review your insurance company's existing policies. For instance, you're planning to drive on a foreign road. Always check what's covered in your auto insurance in case of an accident. Many insurance companies have coverage exclusions or restrictions. Hence, see to it that you'll touch base, phone, or email your insurance provider/s.
Ping your Banks
After deciding which cards you want to get, inform your bank about your travel. Let them know your destination and the length of your trip, so you're withdrawals will not be flagged as suspicious.
Be mentally and financially prepared when encountering bad scenarios on your trip, such as theft. Some banks can notify users when they use they swipe their cards or withdraw money. You can turn this alert on and use it as a way to easily track a burglar's fraudulent activities, especially when your things are stolen while you're traveling.
In addition to the possibility of getting your stuff stolen, you might want to consider availing for a backup card and keeping some cash in another safe compartment in your luggage. It's safe to keep a copy of your passport, insurance cards, driver's license, and other personal documents.
Takeaway
Needless to say, you'll experience more rooms for negotiations if you have better credit scores. However, having bad credit doesn't leave you without any choices for traveling. You have to keep looking because you'll never know until you try.
This article is copyrighted by Travelers Today, the travel news leader
