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7 Best Personal Loans for Vacation in September 2024
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Vacations can be expensive. But you don’t have to magically make thousands of dollars appear out of thin air to pay for one. There are lenders that offer vacation loans with competitive rates that allow you to fund your vacation and pay it off over time.
Vacation loans are a type of personal loan that can be used for anything, including travel. If you have a vacation planned but don’t want to drop a pile of money on a credit card—and haven't saved the cash in a vacation fund—you might want to consider financing your trip instead. Here are a few of the best vacation loans currently available for a variety of borrowers:
Title | Best for | Loan amount | APR | Min. credit score |
---|---|---|---|---|
LightStream | Excellent credit | $5,000 to $100,000 | 9.49% to 25.49% | 660 |
SoFi | Large vacation loans | $5,000 - $100,000 | 8.99% to 29.49% | 680 |
Discover | Low rates | $2,500 to $40,000 | 7.99% to 24.99% | 660 |
LendingClub | Smaller vacation loans | $1,000 to $40,000 | 8.98% to 35.99% | 600 |
Prosper | Fair credit | $2,000 to $50,000 | 6.99% to 35.99% | 600 |
Best Egg | Fast funding | $2,000 to $50,000 | 8.99% to 35.99% | 640 |
Upstart | $1,000 to $50,000 | 7.8% to 35.99% | 300 |
We reviewed the rates and terms from more than two dozen financial institutions that offer personal loans. We found lenders that offer several loan terms, fixed interest rates only, and rates under 10% APR for borrowers with excellent credit.
We then reviewed Better Business Bureau ratings for companies that have at least an “A” rating or better, with most lenders chosen having the top “A+” rating. We chose a mix of providers that offer loans to borrowers with various credit ratings—some don’t require any credit history or score to potentially qualify for a loan.
Finally, we chose only lenders with transparent fee structures and rates listed publicly on the website. We picked lenders with a range of interest rates, weighing heavier on those that provided lower rates overall.
To find the best vacation loan for your needs, you’ll first want to find a lender that is highly rated and trustworthy. You can review Better Business Bureau ratings as well as review complaints against the loan company to understand how the business operates. Our list is a great place to start.
You’ll then want to review your personal credit score to ensure you can qualify for a loan from the lenders you’ve selected. Most require a good credit score, and higher scores will result in better rates. Some lenders also have income minimums and citizenship restrictions, so make sure to review the loan requirements before applying.
Once you narrow down a few companies that offer loans you want—and qualify for—you can typically apply for pre-approval. This process performs a soft credit pull on your credit report, allowing you to see the loan terms and rates before you complete your application. Get pre-approved for several lenders and compare rates to choose the one that best fits your needs.
Once you find the loan you want, complete a full application. This will likely include providing more personal and financial information, as well as including documentation. Once the loan is approved, most online lenders will send you loan funds within a few days.
While vacation loans can help you fund a last-minute trip or an upcoming vacation, it’s not the only way to come up with cash for your trip. Here are a few alternatives to vacation loans to consider:
Savings account. Instead of financing your upcoming trip, it’s a much better idea to save up for it. Yes, it may take longer to save for a vacation than to finance it, but you’ll pay no interest and come home from your vacation debt-free.
Credit cards. If you need to pay for your vacation with a credit card, look for ones with a 0% APR promotional period. This can help you borrow the funds needed and pay no interest if you repay it on time. You may also consider a travel rewards card—some offer sign-up bonuses and points that can help pay for some of the travel expenses, such as flights or hotel room nights. Be sure to read the fine print. For example, many cards provide richer rewards to those who use the lender’s travel portal rather than buying tickets or reserving hotel rooms directly with the provider or through a different type of website.
“Staycation” instead. If you simply don’t have the money for vacation this year, consider putting together an inexpensive “staycation” instead. Avoid the hassle and costs of travel and plan some fun things to do close to home. This can be a great way to explore nearby attractions and enjoy a less-expensive vacation at home.
A vacation loan is a type of unsecured personal loan that allows you to borrow funds based solely on your income, credit score, and credit history. You can typically borrow up to $50,000 and funds can be used for anything (even if not travel-related). Vacation loan interest rates are typically high and may come with origination fees that make these loans even more expensive.
To get a vacation loan, you’ll need to do the following:
Vacation loans allow you to get an unsecured personal loan quickly, but many come with high fees and exorbitant interest rates. If your credit is in the dumps you could end up paying 30% APR or more on your loan, which is higher than most credit cards. And some charge up to 8.99% origination fees up-front, which is directly taken from your approved loan amount. While personal loans can help you pay for a vacation you might end up paying a lot more than expected.
Vacation loans can help you fund an upcoming trip, but you’ll pay for the convenience. Between origination fees and high interest rates for all but the highest-qualified borrowers you could end up paying more than borrowing on a credit card. If you have a solid plan to repay your loan quickly, a vacation loan can work. But in most cases you’ll pay a lot more for your vacation.
Vacation loans can be worth it for last-minute trips (like a destination wedding) or if you qualify for a low rate, but in many cases they can become very expensive. As with any debt, you’ll want to ensure you have a payoff plan in place before borrowing. Expect to pay a loan fee and some interest when paying it off and always run the numbers before applying for a vacation loan.
Travel loans, aka “vacation loans,” are a type of unsecured personal loan that you can apply for and get funded within a few days. You don’t need to provide any collateral for the loan—just your income information and a good credit score. If you don’t think you’ll qualify, some lenders allow co-borrowers.
You can use a vacation loan or a credit card to pay for your vacation. But the best way to get money for a vacation is to set up a savings account and save monthly. This allows you to break down your large vacation savings goal into small amounts and take your vacation debt-free.
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