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Best Travel Loans: Finance Your Next Vacation March 2024

You can indeed take out a personal loan for vacation travel. We advise you to take caution and be smart when making decision. Carefully compare interest rates, fees, and repayment terms, to find the best travel loan for your budget and vacation plans.

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Key Facts

  • Free-to-use marketplace with a choice of vetted lending partners.
  • Borrowers are in control and can compare competitive loan options.
  • No prepayment fees and origination fees as low as 0%
  • Max Loan Amount: $100K

Pros

pros iconGreat for Comparing Lenders

pros icon Fast and Easy

pros iconSecure 256-bit encryption

Cons

cons iconFees Vary

cons iconOther Variable Info

cons iconTerms are Limited

Personal Loans Rate and Terms Disclosure: Rates for personal loans provided by lenders on the Credible platform range between 4.60% – 35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 3, 2022, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties..

Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Lenders will conduct a hard credit pull when you submit your application. Hard credit pulls will have an impact on your credit score. Lowest rate advertised is not available for all loan sizes, types, or purposes, and assumes a very well qualified borrower with an excellent credit profile. Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680.

Bonus disclosure:
“All bonus payments are by gift card.”

*Not all available financial products and offers from all financial institutions have been reviewed by this website

  • $600-$100K Loan Amount
  • 550 Min Credit
  • 6.40-35.99% APR
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Key Facts

  • Competitive rates available for good credit scores and income source
  • Access to financial advisors, private networking events, & unemployment protection
  • Flexible terms & payment options with no fees whatsoever
  • Max Loan Amount: $100K

Pros

pros iconPersonal loan application process is easy and only takes a few minutes to complete

pros iconSoft credit check that doesn’t affect your credit score and gives you personalized rates

pros iconFixed and variable rate loans available ranging from $5,000 to $100,000

pros iconNo late or origination fees required

pros iconExcellent customer support team

pros iconOnline autopay comes with a discount on interest

pros iconExclusive benefits for members (ex. networking events and access to financial advisors)

pros iconUnemployment Protection feature comes with a temporary payment pause (up to 12 months)

pros iconNo prepayment penalties

Cons

cons iconMay take up to 4 days to receive funds after approval (longer than other online lenders)

cons iconHigh eligibility requirements (ex. good credit and sufficient income)

“SoFi” is a registered trademark of Social Finance, Inc. SoFi is not affiliated with colleges and universities listed on SoFi.com. Colleges and universities listed on SoFi.com do not endorse, promote or recommend SoFi loan products.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp. or an affiliate, NMLS # 1121636. (www.nmlsconsumeraccess.org)

Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680

✝︎ To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

©2022 Social Finance, Inc. All rights reserved.”

Fixed rates from 3.99% APR to 9.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 01/16/24 and are subject to change without notice. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-6%, which will be deducted from any loan proceeds you receive.Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

  • $5K-$100K Loan Amount
  • 680 Min Credit
  • 8.99-25.81% APR
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Key Facts

  • Useful mobile app to manage your loan
  • Accepts co-signer and joint applications
  • Wide range of term lengths and amounts

Pros

pros iconFast funding time

pros iconGreat reputation

pros iconLow-fee loans

pros iconWide range of term lengths

Cons

cons iconYou need to be a PenFed Credit Union member to get a loan

cons iconDoesn’t disclose all eligibility requirements

This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will suit their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also assess brands we are not engaged with).

These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewers’ findings and subjective experience, and product popularity, impact the placement and position of the brands within the comparison table. In the event that we assign ratings or scoring, they are based on the standing in the comparison table or according to the other formula in the event detailed explicitly by us. See our How we Rate page and Terms of Use for information.

The reviews, ratings, and scoring are provided “as is” without guarantees or warranties regarding the information contained on our website, which shall not be considered as endorsement. We do our best to keep the information up-to-date. However, an offer’s terms might change at any time. We do not compare or include all service providers, brands, and offers available in the market. Loan Payment Example: A $35,000 personal loan financed at 4.99% APR would amount to 60 monthly payments of approximately $676.49 each.

  • $600-$50K Loan Amount
  • 690 Min Credit
  • 8.49-17.99% APR
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Key Facts

  • Discounts for Upgrade account owners
  • No prepayment fees
  • Fast funding in 1-4 days

Pros

pros iconOffers a small minimum loan amount

pros iconDeals with credit scores of at least 580

pros iconNo early prepayment fee

pros iconQuick time to funding

pros iconSolid mobile app to manage loans

Cons

cons iconCharges origination fee

cons iconLate fees in place

Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 1.85% to 9.99% origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s lending partners can be found at https://www.upgrade.com/lending-partners/.

Fast Funding Disclosure: *Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds sent directly to you should be available within one (1) business day. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.

  • $1K-$50K Loan Amount
  • 580 Min Credit
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Key Facts

  • Wide range of loan term lengths.
  • No prepayment penalties.
  • Enjoy additional services Axos offer.

Pros

pros iconNo prepayment penalties

pros icon1-year loan terms available

pros iconFast, 2-day funding

pros iconWide range of loan terms

Cons

cons iconHigh credit score requirements

cons iconOrigination fee

cons iconShorter loan terms

Axos Bank® offers bank products and services. All deposit accounts through Axos Bank brands are FDIC insured through Axos Bank. All deposit accounts of the same ownership and vesting held at Axos Bank are combined and insured under the same FDIC Certificate 35546. All deposit accounts through Axos Bank brands are not separately insured by the FDIC from other deposit accounts held with the same ownership and vesting at Axos Bank. For more information, read our FDIC Notice. Axos Bank NMLS# 524995. For example, if you get approved for a $15,000 loan at 6.99% APR for a term of 72 months, you’ll pay just $256 per month for a total amount of $18,432.

 

  • $5K-$50K Loan Amount
  • 690 Min Credit
Powered by Credible
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Key Facts

  • Good credit gets low rates and zero fees
  • Fast and easy online process
  • $100 Loan Experience Guarantee¹
  • Max Loan Amount: $100K
  • Powered by Credible

Pros

pros iconGet a loan for practically anything

pros iconAutopay discount available

pros iconDedicated app to manage your loan

pros iconLightStream doesn’t charge any fees

Cons

cons iconPersonal loan up to $100K

cons iconRequires steady income

cons icon1-3 Days till funding

LightStream is a part of Truist Bank. While most correspondence will come from LightStream, you might notice the name Truist on certain communications from us. We continue to serve customers across all 50 states, and you do not need to be an existing customer to qualify for a LightStream loan.

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and credit profile. The lowest rates require excellent credit. At least 22% of approved applicants applying for the lowest rate qualified for the lowest rate available based on data from 07/01/2022 to 09/30/2022.

Rate is quoted with an AutoPay discount. AutoPay discount is only available before loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66.

  • $5K-$100K Loan Amount
  • 660 Min Credit
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Key Facts

  • Flexible repayment options
  • Great for customers with bad credit score
  • Safe and secure

Pros

pros iconEasy, fast application process

pros iconFunds are disbursed quickly

pros iconBuilds personal credit

Cons

cons iconHigh fees and interest charges

cons iconNo co-signed, joint, or secured loan option

cons iconNo rate discount for automatic payments

Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680

  • $2K-$35K Loan Amount
  • 580 Min Credit
  • 9.95-35.99% APR

Top Vacation Personal Loan Providers

sofi logo
SoFi

Low Rates. No Fees are Required.

680

Min Credit Score

8.99-25.81%

APR. Fixed Rate

8.99-25.81%

APR. Variable Rate

$5K-$100K

Loan Amount

24 to 84 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

Same-day funding if approved before 7:00 PM ET days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Personal loan application process is easy and only takes a few minutes to complete
  • con-icon Soft credit check that doesn’t affect your credit score and gives you personalized rates
  • con-icon Fixed and variable rate loans available ranging from $5,000 to $100,000
  • con-icon No late or origination fees required
  • con-icon Excellent customer support team
  • con-icon Online autopay comes with a discount on interest
  • con-icon Exclusive benefits for members (ex. networking events and access to financial advisors)
  • con-icon Unemployment Protection feature comes with a temporary payment pause (up to 12 months)
  • con-icon No prepayment penalties
  • con-icon May take up to 4 days to receive funds after approval (longer than other online lenders)
  • con-icon High eligibility requirements (ex. good credit and sufficient income)

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Major Purchase
  • Medical Expenses
  • Relocation
  • Vacation
  • Wedding

Loan Type

drop-down-btn
  • Unsecured Personal Loans
Credible

Get Personalized Prequalified Rates

550

Min Credit Score

5.20-35.99%

APR. Fixed Rate

6.40-35.99%

APR. Variable Rate

$600-$100K

Loan Amount

1-7 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

Yes

Other Fees

Varies

Origination Fee

Varies

Prepayment Fee

Within 5 working days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Great for Comparing Lenders
  • con-icon Fast and Easy
  • con-icon Secure 256-bit encryption
  • con-icon Fees Vary
  • con-icon Other Variable Info
  • con-icon Terms are Limited

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Medical Expenses
  • Relocation
  • Vacation
  • Wedding

Loan Type

drop-down-btn
  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans
  • Variable-Rate Personal Loans
  • Co-singer / Joint loans

690

Min Credit Score

8.49-17.99%

APR. Fixed Rate

8.49-17.99%

APR. Variable Rate

$600-$50K

Loan Amount

6 months to 6 years

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

Yes

Other Fees

None

Origination Fee

None

Prepayment Fee

1-2 days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Fast funding time
  • con-icon Great reputation
  • con-icon Low-fee loans
  • con-icon Wide range of term lengths
  • con-icon You need to be a PenFed Credit Union member to get a loan
  • con-icon Doesn’t disclose all eligibility requirements

Loan Purpose

drop-down-btn
  • Debt Consolidation
  • Home Improvement
  • Medical Expenses
  • Other

Loan Type

drop-down-btn
  • Unsecured Personal Loans

What Is a Vacation Loan?

A holiday loan, also called a vacation loan, is an unsecured personal loan that helps you pay for a vacation. These loans can be used to cover flights, hotels, activities, and other travel expenses. Several lenders offer personal loans for vacations, including banks, credit unions, and online lenders. These personal loans are repaid in fixed installments — so you’ll pay the same amount each month over the life of the loan.

Travel Loans: Key Terms to Know

You should familiarize yourself with the following terms when looking at loan options:

  • Annual Percentage Rate (APR) – The rate of interest charged on a vacation loan, expressed at an annual rate. 
  • Term length: Lenders can present you with a variety of choices, typically spanning from one to seven years in duration. Loans with longer terms tend to result in lower monthly payments but typically incur higher overall costs.
  • Principal – The amount of money owed on a loan, excluding the charged interest or APR.
  • Unsecured Loan – Most personal loans online are not collateralized. However, car loans may be secured or collateralized with the car the borrower plans to purchase. If you take out a personal loan for a vehicle that is unsecured, the lender assesses your ability to pay, based primarily on your credit score.

How Do Vacation Loans Work?

If you are approved for a vacation loan, you should receive funds within a few days. The funds are typically disbursed as a lump-sum payment. These funds can be used to cover travel expenses in a variety of ways.

Depending on your travel schedule, repayment usually begins within the first month after disbursement of funds. It's advisable to enroll in autopay immediately upon receiving the loan in order to make timely payments regardless of when you need to begin repaying the loan. Rates for vacation loans vary from 4% to 26%, with terms ranging from one to seven years.

Pros and Cons of Vacation Loans

Pros Cons
Flexibility: You can use your personal loan for any type of vacation expense you want. Credit Score Risk: Missing a loan payment can hurt your credit score.
Low-Interest Rates: If you have a high credit score and good income, you could qualify for a low interest rate on your holiday loan. Potential Fees and High-Interest Rates: Depending on your credit score, the interest rates on your loan could be higher and some lenders also charge extra fees for loan origination and early repayment. 
Fixed Repayments: Because personal loans have fixed monthly payments, you’ll pay the same amount each month.  Harder to Save: Loans can make it harder to save up for your next vacation due to continuous repayment instead of using a credit card.
Accessibility: A holiday loan gives you access to a large lump sum of money all at once. Added Debt: A personal loan for vacations becomes another financial obligation that could require years of repayments.

How to Apply for a Vacation Loan

To apply for a personal loan for a vacation, you will need to take the following steps.

  1. Check your credit: Before applying for a holiday loan, it’s a good idea to review your credit report. Check for any inaccurate information that you might need to have removed by the credit bureaus, as well as other factors that might be hurting your credit score that you can fix (like a delinquent account). Cleaning up your credit report and improving your score can help you get a better interest rate on your loan — and it could even affect whether you qualify for a personal loan for vacation travel in the first place. Many lenders have minimum credit score requirements to qualify for a loan.
  2. Prequalify and compare lenders: It’s generally best to prequalify with three or more lenders so you can see what options are available to you. Aside from lower interest rates, other factors to consider could include loan features like the ability to manage your loan with a mobile app or fast funding. Some companies specialize in funding holiday loans, so they could offer more competitive rates.
  3. Provide necessary documents: As with other personal loans, you’ll need to provide some key documents to qualify for a holiday loan:
    • Personal identification (such as a driver’s license or passport)
    • Social Security Number
    • Proof of income (W-2 or pay stub)
    • Bank account information (for transferring the loan)
  4. Review and sign your application: It’s a good idea to double-check your paperwork and make sure the interest rate and loan terms are a good fit for your budget before you complete your application. Once you are approved for the loan, you’ll need to start making payments each month.

READ MORE: THE ULTIMATE GUIDE FOR VACATION LOANS

How to Choose a Personal Loan for Vacations

When trying to choose a lender for a holiday loan, there are a few important factors to consider:

Interest rate and APR: The interest rate on your personal loan is the amount of interest you’ll need to pay for your loan, in addition to the principal (or the amount of money you originally borrowed). The APR (annual percentage rate) includes both your interest rate and other lender fees. Your interest rate is largely determined by your credit score and other information from your credit report. The higher your interest rate, the more expensive your monthly payments and total loan costs will be.

The interest rate you’ll be offered for a vacation loan will depend on your credit score. Generally, vacation loan rates range from 4% - about 26%.

Repayment terms: A personal loan for vacation expenses could have repayment terms ranging from a few months to a few years. Longer repayment terms result in lower monthly payments, but you’ll end up paying more in interest over the life of the loan. Shorter repayment terms have higher monthly payments, but you’ll pay less overall. Consider the total amount of money you’d have to pay and what works best for your budget.

Best Vacation Loan Reviews

sofi logo
SoFi
  • APR: 8.99-25.81%
  • Loan Term: 24-84 months
View rates
Credible
  • Fixed APR: 5.20-35.99%
  • Loan Term: 12-84 months
View rates
penfed logo
PenFed Credit Union
  • Useful mobile app to manage your loan
  • Accepts co-signer and joint applications
View rates

Alternatives to Vacation Loans

You don’t necessarily have to take out a personal loan for vacation travel. Several alternatives could be a better financial solution:

  • Create a vacation savings account: The cheapest way to travel is to open a separate account to save money for your next trip. Money placed in a high-yield savings account will also earn interest, helping to grow your vacation savings. Using these savings will help you avoid taking on debt to go on vacation.
  • Use your credit card: Many credit cards have generous travel rewards programs that allow you to earn rewards points for vacation spending. Be mindful of your credit card’s interest rate when using it for vacation expenses. Paying off the balance in full by your next billing date will allow you to avoid interest charges. Those with good credit could also apply for cards with 0% intro APR financing, giving them more time to pay off their charges without any interest.
  • Get a part-time job: If you’re trying to save for a big vacation, consider getting a part-time job. Save all the money you earn from the extra work toward your trip so you can cover your expenses without taking on debt.
  • Borrow from friends or family: You might be able to borrow money from a trusted friend or family member instead of taking out a loan. Be sure to agree on repayment terms in advance to prevent possible misunderstandings.
  • Take a staycation instead: A staycation can be a fun, low-cost alternative to an expensive trip. Explore your local area and stay at your own home to enjoy a fun, relaxing break without stressing your budget.

Conclusion

Travel loans offer a convenient way to finance your vacation by giving you access to funds for flights, accommodations, and other holiday-related expenses. These loans come with both advantages and drawbacks. They offer flexibility in spending, the potential for low interest rates with good credit, and predictable monthly payments. However, they also risk negatively impacting your credit score if payments are missed and may incur additional fees and interest charges. Choosing the right financial solution for your vacation should align with your goals and priorities.