Key facts
- One of the largest P2P lending partners & investing companies
- 15-day grace period for late fees
- Apply in just minutes and receive competitive offers
Read LendingClub Review »
Disclaimer: A representative example of loan payment terms is as follows: you receive a loan of $13,411 for a term of 36 months, with an interest rate of 12.16% and a 5.30% origination fee of $711, for an APR of 15.99%. In this example, you will receive $12,700 and will make 36 monthly payments of $446.46. Loan amounts range from $1,000 to $40,000 and loan term lengths are 36 months or 60 months. Some amounts and term lengths may be unavailable in certain states. APR ranges from 8.05% to 35.89% and is determined at the time of application. Origination fee ranges from 3% to 6% of the loan amount. Lowest APR is available to borrowers with excellent credit. Advertised rates are subject to change without notice. Loans are made by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. LendingClub Bank is not an affiliate of [PARNTER LEGAL NAME] and is not responsible for the products and services provided by [PARNTER NICKNAME]. Loans are subject to credit approval and sufficient investor commitment before they can be funded or issued. Certain information that LendingClub Bank subsequently obtains as part of the application process (including but not limited to information in your consumer report, your income, the loan amount that your request, the purpose of your loan, and qualifying debt) will be considered and could affect your ability to obtain a loan. Loan closing is contingent on accepting all required agreements and disclosures at Lendingclub.com. “LendingClub” is a trademark of LendingClub Bank.
What Is a Vacation Loan?
A vacation loan is an unsecured personal loan designed to help you pay for a trip and your holidays, such as flights, hotels, activities, and more. Travel loans can be obtained from various lenders, including banks, credit unions, and online lenders. They can cover the expenses of multiple vacations, from a beach getaway to a mountain retreat to a city break.
Finance a Vacation: All You Need to Know
If you’re planning a vacation but need a loan to cover the costs, you’re not alone. Many people rely on loans to make their dream vacations a reality. But with so many loan options, how do you choose the best one for your needs? Here are some key factors to consider when comparing loans for your travel:
Interest rate: The interest rate is the percentage of the loan amount you’ll pay in addition to the principal. A lower interest rate means lower overall costs for you. Be sure to compare the annual percentage rate (APR), which includes the interest rate and any fees, to compare the cost of the loan. The interest rate you’ll be offered for a vacation loan will depend on your credit score. Here’s a general range of what you can expect:
- Excellent credit (740 or higher): 4% – 10% APR
- Good credit (690-739): 10% – 16% APR
- Fair credit (630-689): 16% – 24% APR
- Poor credit (629 or lower): 24% or higher APR
Remember that these are just estimates, and the actual interest rate you’ll be offered may vary depending on the lender and other factors.
Fees: Some loans come with origination fees, application fees, or other charges. Make sure to compare the total cost of the loan, including fees, to get a true comparison.
Repayment terms: Vacation loans can have repayment terms ranging from a few months to a few years. Consider your budget and how long it will take to repay the loan. A longer repayment term may result in lower monthly payments, but you’ll pay more interest over time.
Credit requirements: Different lenders have different credit score requirements. If you have a lower credit score, you may have to pay a higher interest rate or not qualify for some loans. It’s a good idea to check your credit score and credit report before applying for a loan, so you know what loan options may be available.
How To Finance a Vacation?
To apply for a personal loan for a vacation, you will need to take the following steps.
- Check Your Credit Score. When you apply for any personal loan online, you need to review your credit score first through the 3 credit bureaus. Because your loan is primarily based on your credit score, knowing the score will determine what APR you will be charged.
- Select Your Loan Type. Some companies specialize in Vacation loan funding, so it is better to go through them if you want the best rates for this loan type.
- Get Prequalified for Vacation Loan Financing. When you choose several lending providers you like, you will need to get prequalified for your Vacation loan next. Doing so will give you the repayment details and terms for your Vacation personal loan. You can also get a lower fixed APR if you agree to shorter loan terms.
- Compare the Lenders. After getting prequalified through different funders, you can review their loan terms and APRs and see which fits best with your lending or personal finance requirements. For a Vacation personal loan, go with a lender that offers the lowest APR and features the lowest fees over the loan term.
- Supply the Necessary Info and Documents. When you choose a lender, you will need to provide the required loan paperwork and information for Vacation loan funding. In this case, you need to supply the following details and documents:
- Personal Identification (Social security card, passport, or driver’s license)
- Proof of earnings or income (W-2s, paystubs, or filed tax returns)
- Employer information (Name of company, manager’s name, and phone number and address)
- Proof of residence (utility bill with your name and address or a lease agreement)
- Apply for the Loan and Start Making Payments. After you apply for a loan and start making payments, you might add some extra money to your payment each month to repay the loan faster. Doing so will make the loan repayment smoother and more manageable.
READ MORE: THE ULTIMATE GUIDE FOR VACATION LOANS