Notes

Choosing the type of finance that Amy should use to finance her trip to Colombia can be a bit hard. Credit cards can be quick and easy, they can also be very flexible and they come with different rates to suit you. On the other hand, personal loans are not that flexible as credit cards but they are quite easy to get when you have a good credit history and can be cheaper than credit cards.

The best type of finance for Amy would be a personal loan as they are great for travel. Amy can choose either a secured or unsecured loan where unsecured loans have a higher interest rate because the lender will think that there is a higher risk that you may not be able to pay the loan back. Amy will be going on her trip for four months so she has quite a while to pay it back.

Amy has four months until she leaves to go to Colombia, and in the meantime, she has time to get her personal loan. If she is lucky she might be able to walk away with her money almost that same day, or it could be in her bank account within a couple of hours. Depends on what type of personal loan Amy' might not have to use any security which means she can choose to keep her assets safe while she is away.

Although personal loans aren't as flexible as credit cards they can come in handy as they are easy to access. Amy will be able to repay the loan based on her financial capacity and monthly income and the rate is generally lower than taking a cash advance on your credit card. Interest rates can be higher than a secured loan, and you would have to prove that you can pay back the loan by having a good credit history/rating.