Best Vacation Loans in 2024

Personal loans to finance your next trip

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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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Written by Amanda Push | Edited by Jessica Sain-Baird and Xiomara Martinez-White | Reviewed July 19, 2024

Top lenders for vacation loans

Discover: Best for vacation loans for good-credit borrowers

7.99% - 24.99%

$2,500 - $40,000

36 to 84 months

None

720

Pros

  • No origination fees
  • May receive funds within 24 hours of applying
  • Low income requirement

Cons

  • May charge late fees
  • Those with poor credit may not qualify
  • No option for co-applicants

What to know

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With competitive APRs and a minimum credit score of 720, Discover may be a good fit if you have strong credit. You can get your personal loan funds within a day of closing and won’t have to pay any origination fees.

However, though Discover doesn’t charge origination fees, it may charge a late penalty if you miss a payment. And if you need a co-applicant, you may need to find a different lender.

To learn more, read our full Discover personal loan review.

How to qualify

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Discover requires that you meet the following eligibility criteria for a personal loan:

  • 720 minimum credit score
  • Minimum annual income of $2,500
  • Be a U.S. citizen or permanent resident
  • Have a physical address
  • Have a valid email
See Your Personalized Results

LightStream: Best for vacation loans with no fees

6.99% - 25.49% (with autopay)

$5,000 - $100,000

24 to 84 months

None

Not specified

Pros

  • Doesn’t charge any fees
  • Offers large loan amounts and long loan terms
  • Same-day funding available
  • Offers autopay discount

Cons

  • Only works with those with good or excellent credit
  • No option to prequalify
  • Requires several years of credit history

What to know

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While most lenders charge origination or late fees, LightStream customers get to avoid all those extra costs. On top of that, you can receive your loan funds the same day you apply.

However, LightStream only works with good- to excellent-credit borrowers who have at least several years of credit experience. There’s also no option to prequalify for a LightStream personal loan — as such, the lender will run a hard credit pull for you to see your rates.

To learn more, read our full LightStream personal loan review.

How to qualify

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LightStream doesn’t clearly define its eligibility requirements for its personal loans, but it will consider the following:

  • Good or excellent credit scores
  • Several years of credit history
  • Valuable assets, such as checking and saving accounts
  • A good debt-to-income ratio
  • A consistent payment history
See Your Personalized Results

Prosper: Best for vacation loans with co-applicants

8.99% - 35.99%

$2,000 - $50,000

24 to 60 months

1.00% - 9.99%

560

Pros

  • Allows for co-applicants
  • Flexible borrowing amounts
  • Funding within one business day

Cons

  • Charges an origination fee
  • High maximum APR
  • No autopay discount

What to know

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If your credit isn’t strong or you’re new to credit, Prosper allows you to add a second person to your personal loan application. A co-applicant can make it easier for you to qualify for a loan as well as for lower rates.

Keep in mind that you’ll have to pay an origination fee of 1.00% - 9.99%, which is taken out of the total amount you’re borrowing.

To learn more, read our full Prosper personal loan review.

How to qualify

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To get a Prosper personal loan, you’ll need to be at least 18 years old and have the following qualifications:

  • A minimum credit score of 560
  • Must have a U.S. bank account
  • Must have a Social Security number
  • Must not live in Iowa or West Virginia
See Your Personalized Results

SoFi: Best for large vacation loans

8.99% - 29.99% (with discounts)

Pricing Disclosure

Fixed rates from 8.99% APR to 29.99% 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 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. 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%-7%, 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.

$5,000 - $100,000

24 to 84 months

0.00% - 7.00% (optional)

680

Pros

  • Loan amounts up to $100,000
  • Offers same-day funding
  • Origination fee is optional

Cons

  • High minimum loan amount
  • May have to accept origination fee to get lower rates

What to know

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While lenders generally only offer loan amounts up to $50,000, SoFi customers can access vacation loans as large as $100,000. SoFi can transfer your funds the same day you close on your loan and any origination fees are optional.

Since SoFi’s borrowing limits start at $5,000, you’ll have to look elsewhere for a smaller loan. And for lower rates, you may have to accept an origination fee.

To learn more, read our full SoFi personal loan review.

How to qualify

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SoFi will consider applicants with the following eligibility requirements for personal loans:

  • 680 minimum credit score
  • Be a U.S. citizen, permanent resident or nonpermanent resident
  • Be employed or have an employment offer to start within 90 days (or have other type of income)
  • A good debt-to-income ratio
See Your Personalized Results

Upgrade: Best for vacation loans for bad-credit borrowers

8.49% - 35.99% (with autopay)

$1,000 - $50,000

24 to 84 months

1.85% - 9.99%

580

Pros

  • Low credit score requirement
  • Flexible repayment terms
  • Offers an autopay discount

Cons

  • High maximum APR
  • Charges an origination fee
  • Charges late fees

What to know

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If you have bad credit, it can be difficult to qualify for a personal loan. However, some lenders like Upgrade have a low minimum credit score threshold that can make it easier for you to access financing. On top of that, Upgrade offers an autopay discount and a wide range of repayment terms.

However, if you take out an Upgrade personal loan, you will have to pay a 1.85% - 9.99% origination fee. Upgrade will also charge late fees if you miss any payments.

To learn more, read our full Upgrade personal loan review.

How to qualify

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Here’s what you’ll need in order to qualify for an Upgrade personal loan:

  • 580 minimum credit score
  • Be a U.S. citizen, permanent resident, or valid visa holder
  • A verifiable bank account
  • A valid email address
See Your Personalized Results

Upstart: Best for vacation loans for new-credit borrowers

7.80% - 35.99%

$1,000 - $50,000

36 or 60 months

0.00% - 12.00%

300

Pros

  • Consumers new to credit may qualify
  • Competitive APRs
  • Funding within one business day

Cons

  • May charge an origination fee
  • Origination fee higher than what other lenders may charge
  • Limited repayment terms

What to know

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If you need to finance your next vacation but are new to credit, Upstart may be a good fit. Instead of just your credit score, Upstart also heavily weighs factors like your employment, income and level of education.

However, Upstart’s origination fees can come in as high as 12.00%, and its repayment terms are limited to just two options: 36 or 60 months.

To learn more, read our full Upstart personal loan review.

How to qualify

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Upstart requires the following when evaluating your personal loan application:

  • Social Security number
  • A U.S. address
  • A valid email
  • Current employment, an employment offer to start in six months or another source of consistent income
  • A U.S. bank account

You will also need to have that meets Upstart’s minimum credit requirements. If you don’t have a credit score, you will need to be enrolled in or have graduated from an associate, bachelor’s or postgraduate degree program.

See Your Personalized Results

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:

ProsCons

 Consistent payments can help build your credit

 Doesn’t require collateral like other types of debt

 Can make your travel plans a reality if you’re unable to save up in time

 Comes with fixed monthly payments and a specific end date

 Fees and interest will cost you extra, as opposed to saving up the money for a vacation

 Taking on debt for nonnecessities may not be wise for your wallet

 If you miss payments, it could damage your credit score

 Repayment terms can last years

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.

Credit score rangeAverage APRAverage loan amount
720+18.66%$18,554
680-71930.04%$15,619
660-67941.99%$11,532
640-65953.29%$8,707
620-63970.24%$6,617
580-619111.30%$4,670
560-579154.75%$3,208
Less than 560171.69%$2,583

Source: LendingTree user data on closed personal loans (for all purposes) for the first quarter of 2024.

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

Yes — because there is some flexibility with personal loan purposes, many lenders offer the option to borrow toward a vacation. During the application process, you’ll need to disclose to your lender as to what you plan to put the money toward.

Unless you can afford to pay off a travel loan quickly or want to use it to build credit, in many cases, it’s not a good idea to go into debt for vacation. Since a leisurely trip isn’t a necessary expense, this could be considered a bad debt.

Vacation loans are a subset of personal loans that are typically unsecured, come in the form of a lump sum and have fixed APRs and monthly payments. This type of debt also has a predetermined repayment term, typically 24 to 60 months.