Best Vacation Loans in 2023

Personal loans to finance your next trip

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Best lenders for personal loans for vacation

Written by Amanda Push | Edited by Jessica Sain-Baird and Xiomara Martinez-White | Reviewed on October 27, 2023
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Read more about how we chose the best vacation loans.

Top lenders for vacation loans

Best for vacation loans for good-credit borrowers

Discover logo

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Best for vacation loans with no fees

LightStream logo

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Best for vacation loans with co-applicants

Prosper logo

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Best for large vacation loans

SoFi logo

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Best for vacation loans for bad-credit borrowers

Upgrade logo

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Best for vacation loans for new-credit borrowers

Upstart logo

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What is a vacation loan?

A vacation loan is a type of personal loan that can be used to fund travel expenses such as plane tickets, hotel stays and rental cars. Generally, vacation loans can have up to 36% APR and can range from $1,000 to $50,000, though some lenders will offer smaller or larger amounts.

This type of debt can take the form of unsecured or secured loans, though they are typically unsecured. Because travel loans are often unsecured, lenders will have personal loan requirements that will rely heavily on your credit score and history.

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Pros and cons of using a personal loan for vacation

As long as you repay them on time, vacation loans can be a good way to improve your credit score and diversify your credit history. However, borrowing money for an expense that isn’t a necessity isn’t a good habit. On top of increasing your debt-to-income ratio (DTI), paying too much interest can cost you extra and may make it difficult to save for the future.

Here’s what to consider before taking out a loan for vacation:

How to compare personal loans

Before taking out a travel or vacation loan, it’s important to do your research and understand what features and conditions to look out for. Consider these significant details:

  • Interest rates: Often expressed within a loan’s annual percentage rate (APR), your interest rate is the cost of borrowing. The better your credit score and profile is, the lower your interest rate will be and the less the loan will cost you.
  • Fees: Some personal loan lenders charge late penalties and origination fees. These are one-time administrative fees charged at the start of your loan and typically come out of the total amount you borrowed.
  • Borrowing limits: Personal loans are provided via a lump sum with lenders having a predetermined limit to how much or how little you can borrow. Some lenders specialize in small loans — starting at $250 to $2,000 — while other lenders may offer up to $100,000 or more.
  • Repayment terms: Unlike credit cards, personal loans come with a payment schedule, known as a term, in which you’re required to have your loan paid off by. Short-term loans have higher monthly payments but come with less interest. Long-term loans have smaller monthly payments, though you’ll pay more in interest.
  • Credit requirements: Each lender will vary when it comes to what credit score you need for a personal loan. However, lenders don’t just look at your score — they’ll also consider your employment, income, length of your credit background, payment history and DTI ratio.
  • Lender reputation: Not all lenders are trustworthy or have good customer service. Before solidifying your personal loan with a lender, make sure you research its reputation by checking reviews, as well as any regulatory action from the Federal Trade Commission (FTC) or the Consumer Financial Protection Bureau (CFPB). You can also check the CFPB consumer complaint database.

What to know about vacation loan rates

Since vacation loans are typically unsecured loans —meaning they don’t require collateral — lenders will rely heavily on your credit to assign you interest rates. The higher your credit score, the lower your APRs. Those who are new to credit or have poor credit scores may only qualify for high APRs.

To get around that, bad-credit borrowers or consumers with thin credit histories can do the following:

  • Work on your credit. If you can, take time to improve your credit score before traveling. According to a LendingTree study, personal loan borrowers could save up to $3,171 by raising their credit score from fair to very good.
  • Get a cosigner. Adding a second person to your personal loan application can decrease your risk in the eyes of a lender. If you choose to take out a loan with a cosigner, keep in mind that both of you will be legally responsible for making sure it gets repaid.
  • Apply for a secured loan. This will require you to provide your lender with collateral, like a savings account, vehicle or real estate. Secured personal loans can come with risks, however — if you’re not able to repay the personal loan, your lender can seize your property.

Personal loan rates by credit score

Based on your credit score, here are LendingTree’s personal loan statistics on what APRs and borrowing limits you may see while shopping for lenders.

Source: LendingTree user data on closed personal loans for the second quarter of 2023.

How to get a vacation loan

The process of getting a vacation loan will differ depending on the lender, but the following steps can give you an idea of how you’ll need to prepare:

  • Check your credit score. Your credit score will play a big role in whether you’ll qualify for a personal loan as well as what rates you may be eligible for. To check your credit score, you can ask your bank, inquire with the credit bureaus or open a free LendingTree Spring account.
  • Create a budget. Knowing how much you can or can’t afford to put toward a monthly payment can help you avoid defaulting on your personal loan. To do this, you can use a monthly budget worksheet as well as a personal loan calculator.
  • Prequalify with multiple lenders. As with making any large purchase, it doesn’t hurt to shop around and compare prices. Be sure to prequalify for a loan with at least three lenders so you can see which is willing to offer you the best features and lowest rates.
  • Verify your information. Once you’ve landed on a lender, you’ll need to confirm the information you’ve provided — this will typically include your identity, income and residency. During this part of the process, your lender will perform a hard credit pull, so it can view your credit history.
  • Close on your loan. During the final stage of this process, you’ll need to sign a personal loan contract, promising that you’ll fully repay it. Be sure to read all the fine print and understand exactly what you’re signing to avoid confusion down the road.

Alternatives to vacation loans

A vacation loan isn’t going to be a good option for everyone, especially if you don’t have a strong credit history or valuable assets you can use as collateral.

If you want to finance a trip but don’t want to take out a personal loan, consider these alternatives:

  • Save up ahead of time. This strategy can take longer than swiping a credit card or taking out a loan, but it can save you money in the long run. Create a budget that allows you to set aside money each month that you can put toward your dream vacation.
  • Apply your credit card rewards. Open a travel credit card or, if you already have one, redeem your credit card travel points to save money on your trip. This can make saving up more feasible or make it so you don’t have to take out as large of a vacation loan.
  • Open a 0% APR credit card. A 0% intro APR credit card can help you avoid paying interest as long as you fully pay it off before the promotional period ends. If you don’t have the card paid off by then, you’ll owe interest on the leftover balance on the card.
  • Use buy now, pay later. Some buy now, pay later (BNPL) apps like Affirm and Uplift have partnerships with airlines, cruise lines, hotels and travel sites like Expedia. This may be a good option particularly for those with thin or bad credit histories.

How we chose the best vacation loans

We reviewed more than 25 lenders that offer vacation loans to determine the overall best six lenders. To make our list, lenders must offer competitive annual percentage rates (APRs). From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

LendingTree reviews and fact-checks our top lender picks on a monthly basis.

Frequently asked questions