Travel Loans

Can I get a travel loan?

Get a travel loan by shopping unsecured loans. Also called personal loans or signature loans, these loans involve borrowing money without putting up any collateral. LendingTree personal loan offers allow you to shop for your best rates and terms for personal loans up to $50,000.

Get personal loan quotes 

Privacy Secured  |  Advertising Disclosures
 

What is a travel loan?

If you’re hoping to go on a vacation but have limited funds, you may consider taking out a loan to cover costs. Travel loans, or vacation loans, are personal loans that are not secured by collateral like your home or car. You can choose a loan of a specific amount with a fixed interest rate and regularly scheduled payments of the same amount.

Travel loans, by the numbers

APR

Best offers range from 9.80% to 24.20% APR* for prime borrowers.
Subprime borrowers will see higher offered APRs.

Loan length

Typically 12 to 60 months, or longer.

Borrowing limit

About $1,000 to $50,000 or more.

Potential fees

Late payment fees, prepayment penalties and origination fees,
which are typically 1%-8% of the loan amount.

*Estimated best APRs sourced from March 2020 LendingTree data

Finding and choosing a travel loan

Finding a vacation loan is as easy as finding a personal loan. There are plenty of places to search for loans, including LendingTree.

When you use LendingTree’s personal loan marketplace to find a vacation loan, you may prequalify for offers from up to five lenders. When you’re comparing vacation loan lenders, you should keep an eye out for the following factors:

  • The lowest offered APR. Generally, the most important factor to consider when comparing loan offers is the APR. The lower your APR is, the less the loan will cost you over time.
  • No fees or low fees. While some lenders charge a prepayment penalty and loan origination fee, other lenders charge no fees at all.
  • Positive reviews. You wouldn’t buy a new TV without reading the reviews first, and it’s smart to research a lender in the same way.

 

Pros and cons of taking out a travel loan

Vacation financing: Tips for success


Shop and compare loan costs online using LendingTree. Compare APRs, fees and loan terms to find an affordable vacation loan.


Build your credit before applying for your loan to get favorable terms. Subprime borrowers will pay more for a personal loan because of high APRs. Check your credit score using My LendingTree to see where you stand.


Determine exactly how much you need to borrow and can afford to borrow. If the loan is too small, you could fall short on unforeseen costs that crop up. If a loan is too large, you may end up paying interest on money you never needed to borrow.


Keep in mind that your travel loan must be repaid. Create a budget for your trip to cut back on impulsive purchases and extravagant activities that are out of your price range.


Choose a destination that you can afford. Better yet, travel during the off-season so you can save money on flights, hotels and activities that cost more during peak season.

Alternatives to taking out a travel loan

Create a budget, and save up in advance

As a rule, you shouldn’t take out debt for unnecessary expenses like travel. While personal loans may present a better option than credit cards due to potentially lower APRs in general, it’s still best to pay for vacations in cash. This might require discipline and budgeting for months in advance, but it ensures you aren’t paying interest on your trip.


TIP: Route a certain amount of money per paycheck into a high-yield savings account to save up quickly while accruing interest.

Earn travel miles with a rewards credit card

Use a rewards credit card for everyday purchases to earn airline miles, hotel points and cash back. Many credit cards offer special rewards programs for people who like to travel. For example, you could get double bonus miles for buying a plane ticket through a certain airline. Just be sure to pay off your balance in full to avoid paying interest.


TIP: Many travel credit cards offer sign-up bonuses, such as earning 20,000 bonus miles for spending $1,000 within the first three months of account opening.

Utilize a personal line of credit instead

Personal loans and personal lines of credit are pretty similar products. The difference is that a personal line of credit offers more flexibility, which could make it a better option for financing a trip. While personal loans have a fixed term and fixed interest rate, personal lines of credit allow you to borrow money on an as-needed basis. Interest rates are variable, but you only pay interest on the balance you carry.


TIP: You can also open a secured line of credit, like a HELOC, to potentially get a lower APR on your travel financing.