5 of the Best Vacation Loans
Are you looking for the best way to fund your next vacation?
We know planning and affording a trip can be stressful, so we put together a list of the top five personal loans specifically designed for the traveler.
Whether you are hoping to explore new cultures or take an off-the-grid adventure, these vacation loans offer flexible payment plans and competitive rates that make it easier and more affordable to embark on your journey.
From long-term payments and low-interest rates to generous spending limits, we’ve compiled a list of the best vacation loans available today.
What is a Vacation Loan?
Vacation loans, AKA travel loans, personal loans, or holiday loans, may be just what you need to take that dream trip you’ve been planning.
Provided by banks, credit unions, or online lenders, vacation loans/ personal loans can be specifically designed to help fund your holiday adventures, giving you the financial flexibility to book flights, hotels, transportation, and leisurely activities.
With a vacation loan, you choose the loan amount you need to borrow, and depending on the terms and conditions of the personal loan, you can pay it back over time with manageable fixed monthly payments.
You can choose to explore a foreign city, go on a luxury cruise, or relax on a tropical beach. Using your vacation loan can make your travel dreams a reality. Be sure to research and choose a reputable lender with fair terms and conditions.
Table of Contents
Best Vacations Loans
Discover Vacation Loan – Best Low Rates
Discover has you covered with their vacation loan, designed for those looking to take a much-needed break without breaking the bank.
Unlike traditional loans, this option allows you to borrow up to $40,000 with fixed interest rates and no origination fees. Plus, repayment terms are flexible, with the option to choose a repayment period that works best for your budget.
Don’t worry about saving up for your dream vacation. Simply fill out a straightforward application and get approved within minutes with the Discover vacation loan. You can start your vacation on the right foot and turn your dream vacation into a reality.
Benefits:
- Borrow up to $40,000
- Won’t impact your credit scores
- Application is quick and easy, most decisions informed you the same day
- Funds are provided as soon as the next business day after approval
- No fees as long as pay vacation debt on time
- 6.99% – 24.99% APR, Loan Interest Rate
* Require both conditions to apply and be approved:
– Minimum of a Good (670+) or Excellent credit score
– Minimum $25,000 individual/ household income
LightSream Personal Loan – Best High Loan Amounts
LightStream personal loan is a great solution for anyone seeking to secure a low-interest personal loan besides paying for a vacation. It can finance a new car, home improvement project, wedding, or other expenses.
These are typically unsecured personal loans, meaning you won’t have to put up collateral to secure the funds you need. What sets LightStream apart from most lenders is its promise to beat any competitor’s rate.
If you are approved for a loan and find a better rate elsewhere, LightStream will offer you a lower interest rate of 0.1% (as long as the other lender’s loan terms and conditions are identical to theirs).
If you’re searching for a reliable, affordable personal loan for your vacation, consider reaching out to LightStream.
Benefits:
- Borrow money up to $100,000
- Lowest Competitive Interest Rates, if a lender has a lower rate given the same terms and conditions, will match the rate and go lower
- No additional fees
- A fast and easy application can deliver same-day funding
- 7.49% – 24.49% APR, Loan Interest Rate
* Minimum Good (670+) or Excellent credit score to be more likely to be approved
SoFi Vacation Loan – Best No Fees
SoFi is a leading personal finance company that offers vacation loans to help you make that dream trip a reality.
The SoFi vacation loan is an unsecured personal loan to finance travel expenses such as airfare, hotel bookings, rental cars, and more. With low fixed interest rates and flexible repayment terms ranging from 24 to 84 months, this loan is a smart option for those who want to travel now and pay later.
Unlike credit card debt, which can accumulate high-interest rates, the SoFi vacation loan ensures predictable fixed monthly installments so that you can focus on enjoying your experience. Apply today and start planning your dream vacation with SoFi!
Benefits:
- Borrow up to $100,000
- No impact on credit score
- No origination fees, no prepayment fees, no late fees
- An easy and quick application can deliver same-day funding after approval
- 8.99% – 23.43% APR, Loan Interest Rate
* No minimum credit score (Not Disclosed), prefers Good credit or Excellent credit scores
UpStart Personal Loan – Best Small Loans
UpStart is an online lending platform that uses machine learning and artificial intelligence to evaluate loan applications and creditworthiness.
It makes the application process quicker and more efficient and helps more people get approved for loans. UpStart accounts for education and work experience when evaluating applications, which can benefit those who don’t have a traditional credit score.
Plus, their loans have no prepayment penalties and competitive interest rates. Overall, if you’re looking for a personal loan that’s a little bit different, UpStart might be for you to secure your vacation loan.
Benefits:
- Borrow up to $50,000
- Won’t affect credit score
- No prepayment fees
- Fast loan application process within minutes
- Accept bad credit or no credit and will review based on education and employment background in addition
- Almost all funds are received the next business day after approval
- 6.70% – 35.99% APR, Loan Interest Rate
* No minimum credit score requirements (Disclosed)
LendingClub Personal Loan – Best Competitive Interest Rates
LendingClub is a peer-to-peer lending platform that allows individuals to connect and lend money to each other. It allows for potentially lower interest rates and fees compared to traditional banks. You can check your rate and apply for a loan online in just minutes. Once approved, you’ll receive funds in your account within a few days.
With a fixed monthly payment and terms ranging from three to five years, borrowers can receive up to $40,000 for multiple purposes, such as consolidating debt or making home improvements besides vacation financing.
The interest rates are typically lower than credit card rates, making LendingClub a great option to save money on interest.
Benefits:
- Borrow up to $40,000
- No impact on credit score
- No prepayment fees
- Quick loan application process
- Accept joint loans with another individual
- Competitive fixed rates and monthly payments as a peer-to-peer lender
- 9.57% – 36.00% APR, Loan Interest Rate
* No minimum credit score (Not Disclosed), prefer fair or higher credit scores
FAQs
Are vacation loans a thing?
Yes, vacation loans exist, and you can receive them from multiple lenders. They are a type of personal loan that you can use to finance your travel plans.
Similar to any other loan, you borrow money from a lender and then pay it back over time with interest. However, it’s important to note that taking out a loan for a vacation isn’t always the best financial decision.
You’ll have to pay interest on the loan, which can add up quickly, and you may end up putting yourself in a worse financial position in the long run.
Before taking out a vacation loan, it’s important to carefully consider your financial situation and whether or not it’s worth taking on debt for a vacation.
How can I get money to pay for vacation?
- Create a savings account that’s specific for vacation and set automatic contributions.
- Cut off non-essential purchases from eating out, entertainment, subscriptions, etc. It saves money that can be used for vacation expenses.
- Plan and make purchases ahead of time to save money on airfare and lodging. Look out for other promotions or discounts.
- Increase your income by taking another gig or working on skills to apply for higher-paying positions.
- Get a vacation loan / personal loan and compare vacation loans that best suit your situation.
- Consider this as a last resource, and know you’ll be paying interest rates. Carefully consider it before applying for one.
- Consider this as a last resource, and know you’ll be paying interest rates. Carefully consider it before applying for one.
Do banks offer vacation loans?
Yes, some banks do offer personal loans specifically for travel expenses. These loans can be a great way to finance your vacation and spread the cost over time.
However, important to keep in mind that interest rates and terms may vary based on your credit score and other factors, so be sure to shop around and compare offers before making a decision.
Some banks may take longer for approval to review your credit score and income history. Lenders specializing in offering loans can assess in a matter of minutes if you are approved to receive personal loan funds.
Additionally, taking on debt for a vacation should be carefully considered and only done if you have a solid plan to pay it back.
Closing Thoughts
With so many loan options available, finding the right online lender can be confusing. However, we have compiled a list of excellent vacation loans to help make your decision easier.
Remember to read all the fine print of the terms and conditions and ask questions about interest rates and payment terms before applying for any loan that suits your needs.
It’s time to start making new travel memories and crossing places off that bucket list without worrying about funds.
