Traveling can be an enriching experience, but it can also be expensive. From flights to accommodations, food to activities, the costs can quickly add up. Fortunately, there are now travel-focused lending apps that can help budget-conscious travelers make their dream trips a reality.
Of course, it’s important to be smart when it comes to loans. These can add up fast if you aren’t planning accordingly. In this article, we’ll explore the benefits of travel-focused lending apps and how they can help you save money whether it’s for a vacation or a long business trip.
What Are Travel-Focused Lending Apps?
Travel-focused lending apps are financial technology platforms that specialize in providing loans and financing options for travelers. These apps offer a range of services, from travel loans to travel credit cards, and are designed to help individuals finance their trips while keeping costs manageable.
The reason for this niche is the increasing number of travelers every year. A lot of places do not allow travelers to work while on their soil, and sometimes, travelers might want to pay for something ASAP. Travel-lending apps are geared specifically to those unique needs.
Should You Use These Apps?
In a perfect world, you really shouldn’t be relying on loans to enjoy your vacation. Vacations should be the result of proper savings and planning. Lending apps are no replacement for savings, and they should never be. However, that doesn’t mean you shouldn’t use them. There are strong benefits to using lending apps in a pinch.
Some vacation loans can and do offer reasonable rates, and even some promos. Remembering to pay these loans as soon as possible is key. Take advantage of any benefits or conveniences while you are financially stable, and pay it off before it gets too big to pay off. If there is any doubt in your mind or financial situation, avoid using these apps. Otherwise, read on.
Things To Look For In Good Travel-Lending Apps
Now that you’re in the right mindset, here are some important qualities to look for when picking a travel-lending app.
Affordable Travel Options
One of the biggest benefits of travel-focused lending apps is that they provide more affordable travel options. Instead of having to pay for everything upfront, travelers can finance their trips and make payments over time.
This can make it easier to afford more expensive trips, such as international travel or luxury accommodations, that might otherwise be out of reach. Most of these apps are also paired up with certain travel services, so there could be discounts or benefits if the traveler uses those partners too.
Flexible Payment Plans
Travel-focused lending apps offer a range of payment options, including fixed monthly payments, interest-only payments, and deferred payments. This flexibility can help travelers manage their finances and make their trips more affordable.
With trips being so quick to change, travelers need to have some form of payment. Also, since their main bank accounts are likely in their home country, flexible payment plans give travelers ample time to settle the differences after the trip is over.
Travel-focused lending apps also offer competitive interest rates compared to traditional lenders, such as banks or credit unions. This can help travelers save money on interest charges and make their trips more affordable overall.
The application process for travel-focused lending apps is typically quick and easy. Many lending apps use Credit API technology, which makes the application process more streamlined and user-friendly. This convenience can help travelers secure financing quickly and without having to go through a lengthy and complicated application process.
Some travel-focused lending apps also offer reward programs and perks that can help travelers save money on their trips. For example, some apps offer cashback or points for purchases made with their travel credit card. These rewards can be used to offset the cost of travel expenses, making the trip more affordable overall.
Protection and security
Travelers are increasingly relying on travel apps for everything from booking flights and accommodations to finding local attractions and restaurants. However, this increased reliance on technology also comes with increased risk, as cybercriminals can use various methods to steal personal and financial information from travelers.
Travel-focused lending apps often offer protection and security features that can help travelers feel more secure when making purchases or using their credit cards abroad. This can include fraud protection, travel insurance, and other security measures that can help prevent financial loss or identity theft while traveling.
Best Travel-Focused Lending Apps For 2023
Here are some of the best travel-lending apps for you to consider.
Upstart is a popular lending app that offers personal loans for a variety of purposes, including travel. Upstart uses a unique underwriting process that takes into account factors beyond just your credit score, such as your education and work history, which can make it easier to qualify for a loan. Upstart offers loan amounts ranging from $1,000 to $50,000 with repayment terms of 3 to 5 years.
LightStream is another top-rated travel-lending app that offers low-interest personal loans for a range of purposes, including travel. LightStream offers loan amounts ranging from $5,000 to $100,000 with repayment terms of 2 to 12 years. One of the standout features of LightStream is its Rate Beat program, which guarantees that it will beat any competitor’s rate by 0.10 percentage points if you meet certain criteria.
SoFi is a popular lending app that offers a range of financial products, including personal loans for travel. SoFi offers loan amounts ranging from $5,000 to $100,000 with repayment terms of 2 to 7 years. SoFi’s personal loans have no fees and competitive interest rates, making them a good choice for budget-conscious travelers.
LendingClub is another popular travel-lending app that offers personal loans for a range of purposes, including travel. LendingClub offers loan amounts ranging from $1,000 to $40,000 with repayment terms of 3 to 5 years. LendingClub’s personal loans have no prepayment penalties, which can be a valuable feature for travelers who want to pay off their loans early.
Marcus by Goldman Sachs
Marcus by Goldman Sachs is a well-known travel-lending app that offers personal loans for a variety of purposes, including travel. Marcus offers loan amounts ranging from $3,500 to $40,000 with repayment terms of 3 to 6 years. One of the standout features of Marcus is its flexible repayment options, which allow you to change your payment due date or defer payment if you need to.