For those seeking to have a little fun in the sun, the recent jump in interest rates for holiday loans is putting a damper on their vacation. The average rate increase for holiday loans has been around 1.6% and experts think the number is only going to get higher as banks continue to worry about defaulting loans and a troubling housing market. Lenders are tightening restrictions making it very difficult to get a holiday loan unless you have perfect credit or as the new regulations state, the “gold standard.”
Julia Harris, from financial data expert Moneyfacts, says: “The ongoing credit crisis has seen institutions concentrating on getting money in the door and becoming more expensive and selective when lending money out.”
Although looking at today’s rates for holiday loans is bad enough, it’s worse when you compare the rates from last year, when they were still relatively low. Experts are recommending that those seeking holiday loans may want to wait for the markets to come back to normal in order to get the best deal. Unless you have ideal credit, it may also be hard to find a bank willing to give you a holiday loan until that happens.
Related reading: Bright Light
Comment on this article