Vacation Loans: How to Finance Your Trip

Vacations are an excellent way to recharge, but they can be expensive. According to Gogo Charters, a weeklong trip in the U.S. costs an average of $1,984 per person or $7,936 for a family of four. For many, these costs might seem out of reach.

If you’re exploring ways to fund your getaway, vacation loans can offer financial support. These loans, tailored to travel, allow you to spread the cost over time with fixed monthly payments. In this guide, we’ll explore how vacation loans work, when they might make sense, and alternative strategies to make your dream trip a reality.

Can you finance a vacation? 

Yes, you can finance a vacation. The are two primary loan options to consider are personal loans and vacation loans.

• Personal loans: A standard personal loan from a bank, credit union, or online lender can provide a lump sum that you’ll repay in fixed monthly payments over a few months to several years. You can use these loans can be used for any purpose, including vacations. Credible, Upgrade, and Upstart offer competitive rates and flexible terms that make them suitable for funding travel.
• Vacation loans: These are personal loans marketed explicitly for vacation purposes. For example:

• SoFi provides travel loans with no fees ranging from $5,000 to $100,000, specifically designed to cover trip-related expenses.
• Discover offers vacation loans with fixed rates and flexible repayment terms, catering to borrowers planning a getaway.
• PNC Bank offers unsecured personal loans marketed for vacation use, with manageable repayment plans and no collateral required.

While vacation loans and general personal loans function similarly—both offer lump sums and fixed repayment schedules—vacation loans are branded and marketed to target travelers, as you can see in the image above from SoFi’s website. The differences are often subtle and may come down to promotional benefits or a lender’s focus on vacation-specific expenses.

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Tip

Financing a vacation, whether through a vacation loan or personal loan, can make your trip more expensive due to interest and fees. Consider these costs, and ensure you can comfortably manage the repayments alongside your other financial obligations.

4 best vacation loans 

Vacation loans are personal loans you can use to help finance your trip. We’ve researched and selected the top options based on affordability, accessibility, and features—even if they don’t explicitly market vacation loans.

SoFi

Best for Good Credit

5.0 _/5

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Why we like SoFi for vacation loans

SoFi offers vacation loans with no origination, late, or prepayment fees, making it a cost-effective option for financing your trip. Borrowers can access competitive rates, high loan amounts, and benefits, including free financial planning, making it ideal for larger or more complex travel plans.

• Funds available as soon as the same day
• Pays off credit card issuers and adds a 0.25% rate discount
• Check your rate without affecting your credit in 60 seconds

• A high minimum loan requirement of $5,000

Fixed rates (APR)	8.99% – 29.99% with all discounts
Loan amounts	$5,000 – $100,000
Repayment terms	2 – 7 years

Eligibility requirements

• Soft credit check? Yes
• Minimum credit score: 650
• States: All 50 states and D.C.
• Other requirements:
  • Must be a U.S. citizen, permanent resident, or visa holder (J-1, H-1B, E-2, O-1, or TN)
  • At least 18 years old
  • Employed, have sufficient income from other sources, or have received an offer of employment to start within the next 90 days

Credible

Best Marketplace

5.0 _/5

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Why we like Credible for vacation loans

Credible simplifies the process of finding a vacation loan by allowing you to compare rates from multiple lenders in one place. You can prequalify without affecting your credit score, making it an ideal tool for shopping around for the best deal.

• Compare prequalified rates from multiple lenders
• No application or origination fees
• Checking your rate doesn’t affect your credit score

• Only shows offers from its partners

Rates (APR)	6.99% – 35.99%
Loan amounts	$600 – $200,000
Repayment terms	1 – 10 years

Eligibility requirements

• Soft credit check? Yes
• Minimum credit score: Varies by lender
• Minimum income: Varies by lender
• States: All 50 states and D.C.

Upgrade

Best for Fair Credit

4.9 _/5

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Why we like Upgrade for vacation loans

Upgrade caters to borrowers with fair credit—FICO scores of 580 to 669—offering competitive rates and flexible loan terms. It also provides complimentary credit monitoring, a useful feature for those aiming to improve their financial health while financing their trip.

• Review multiple loan options to choose your best terms
• Funds are available in as little as one day
• Accepts joint applications
• Check your rate without affecting your credit

• Charges an origination fee of 1.85% to 9.99%

Rates (APR)	8.49% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	2 – 7 years

Eligibility requirements

• Soft credit check? Yes
• Minimum credit score: 580
• States: All 50 states and D.C.
• Other requirements:
  • Must be a U.S. citizen, permanent resident, or in the U.S. on a valid visa
  • Must be 18+ years old (19+ in Alabama and other select states)
  • Must be able to provide verifiable bank info and have a valid email

Upstart

Best for Little to No Credit

4.8 _/5

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Why we like Upstart for vacation loans

Upstart evaluates applicants using a broader approach, considering factors beyond just credit scores. This makes it a top choice for those with minimal credit history who need quick funding for their vacation.

• Funds available as soon as the next day
• Check your rate without affecting your credit in 5 minutes

• Charges an origination fee of up to 12%

Rates (APR)	7.80% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	3 – 5 years

Eligibility requirements

• Soft credit check? Yes
• Minimum credit score: None
• Minimum income: $12,000
• States: All 50 states and D.C.
• Other requirements:
  • Must have a verifiable name, date of birth, and Social Security number
  • Must be 18+ years of age
  • Must have a job (or job offer or verifiable source of regular income), valid email address, and U.S. address
  • Must meet minimum credit underwriting requirements (that is, an established credit history); if no credit history, borrowers must be enrolled in a degree program (associate, bachelor’s, or more advanced) at an accredited school
  • Must have a valid bank account

How far in advance should you apply for a vacation loan?

It’s best to apply for a vacation loan at least a few weeks before your planned trip. This allows enough time to research lenders, compare loan options, and complete the application process without feeling rushed. Most lenders provide funding within a few business days of approval, but some may take longer, especially if additional documentation or verification is required.

Planning ahead also gives you time to account for the cost of the loan in your travel budget. Applying too close to your travel date could lead to delays or limited options, so aim to secure your loan well in advance to ensure a smooth booking and travel experience.

I recommend my clients build a vacation account (and keep it separate). If you receive a bonus or other lump sum, I recommend placing about 30% of it in the vacation account.

I also recommend adding a line item to the budget for vacation savings each pay period and continuing this process each year.

Of course, life happens. The savings could be depleted, but there could be a special travel opportunity or an important one (such as the death of a loved one) that you need to attend. At that point, I think it is reasonable to finance a trip and make plans to pay off the balance as soon as possible. Immediately set up autopay for the minimum balance so you don’t miss any required payments.

When to avoid vacation financing

A vacation loan might be worth considering in some cases, but you’ll likely find more reasons to avoid them. We don’t recommend taking out a vacation loan in these scenarios:

• You struggle to stick to a budget: If you have trouble sticking to a budget, you may have difficulty repaying your vacation loan, which can make your vacation much more expensive.
• You already have debt: Do you have significant amounts of debt in the form of personal loans, credit cards, or home equity loans? Adding more debt can make it worse by increasing your debt-to-income ratio (DTI) and making debt management more difficult.
• Interest rates are high: If we’re in a high-rate environment, a vacation loan will be more expensive. This can raise the cost of the vacation and sour the whole experience.

Vacations can be a terrific opportunity to relax, unwind, and recharge. But if it will put you further in debt, it’s often best to consider other options until your financial outlook improves.

Vacation financing can be the right choice, but in many cases, better options include using savings or a travel credit card. However, if you’re certain it’s the best choice, keep reading to see how to get a vacation loan for your next trip.

I suggest those who are working on improving their financial condition plan “staycations.” Research free events in your area that are of interest. Memories and rest don’t have to take place away from home, but you may have to add creativity and extra planning.

How to get a vacation loan

If you’ve decided that a vacation loan is the best way to fund your trip, the process is simple and tailored to your needs. Many lenders offer personal loans marketed specifically for vacations, allowing you to compare terms and choose the best fit.

Follow these steps to secure a vacation loan:

1. Determine your vacation budget. Calculate the total cost of your trip, including transportation, lodging, activities, and any unexpected expenses. Decide how much you’ll need to borrow and ensure you can afford the monthly payments.
2. Compare vacation loan lenders. Look for lenders that explicitly offer vacation loans or personal loans suited for travel. Credible, Upgrade, and Upstart are excellent options to explore because they provide competitive rates and flexible terms. Use prequalification to compare offers without affecting your credit score.
3. Select the best loan offer. Evaluate the terms, such as interest rates, repayment periods, and fees, to determine which lender provides the most affordable and convenient loan for your vacation.
4. Submit your application. Most vacation loan applications are straightforward and can be completed online. Be prepared to provide proof of identity, income, and employment. Some lenders may approve and disburse funds within a day, allowing you to plan your trip quickly.

By focusing on lenders that cater to vacation financing, you can save time and ensure you get the best loan for your dream getaway. Once you have the funds, create a repayment plan to avoid additional financial stress after your trip.

Alternatives to personal loans for vacation

While personal loans can be a solid choice for financing a vacation due to their predictable terms and fixed rates, other options might better suit certain situations. Below, we break down three common alternatives—home equity products, buy now, pay later (BNPL) services, and cash advance apps—and weigh them against personal loans.

Home equity loans and lines of credit

Home equity loans and lines of credit (HELOCs) allow you to borrow against the equity in your home. While these options often offer lower interest rates than personal loans, they come with a significant drawback: the risk of losing your home if you can’t make your payments.

We don’t recommend using a home equity product for a vacation. The stakes are simply too high—vacations are discretionary expenses, and risking foreclosure for travel doesn’t make financial sense.

Buy now, pay later (BNPL)

BNPL services allow you to split the cost of travel-related expenses, such as airfare, accommodations, or tour packages, into smaller, manageable payments. Popular platforms such as Affirm and Klarna often provide interest-free options if the balance is repaid within a promotional period.

However, BNPL works best for smaller expenses rather than covering an entire vacation. It’s also easy to lose track of multiple repayment schedules, leading to missed payments and fees. BNPL can be a solid option for individuals with bad credit who may struggle to qualify for personal loans or who need to finance a portion of their vacation.

Cash advance apps

Cash advance apps, such as EarnIn or Brigit, allow users to borrow small amounts of money ($1,000 or less) against their next paycheck. These apps can be helpful for minor, last-minute expenses, such as meals, souvenirs, or incidentals during a vacation.

While cash advances typically don’t involve interest, they might charge fees that can add up. And the borrowing limits are low, so these apps aren’t a practical option for covering larger vacation costs.

Why personal loans are still the best option for most vacations

For most vacationers, personal loans remain the most practical choice. They provide a lump sum of funding, allowing you to cover a wide range of travel expenses, from flights and accommodations to activities and dining. Personal loans typically come with fixed interest rates and predictable monthly payments, making them easier to budget for compared to BNPL or cash advance apps.

Personal loans often have higher borrowing limits than BNPL services or cash advance apps, making them a better option for funding an entire trip. For borrowers with good credit, personal loans also tend to offer competitive rates that may be more affordable than carrying credit card debt.

How to minimize your loan amount

Vacation loans can increase the overall cost of a trip due to interest, so it’s wise to borrow as little as possible. Here are travel-specific tips to help minimize your loan amount:

• Choose a budget-friendly destination. Opt for locations with a lower cost of living, favorable exchange rates, or fewer tourists. This can significantly reduce expenses for food, lodging, and activities.
• Travel during the off-season. Visiting your destination outside of peak travel times can result in lower prices for flights, accommodations, and attractions.
• Save on travel expenses. Look for deals on airfare by flying on less busy days or using travel rewards if available. Consider alternative transportation options, such as trains or buses, for nearby destinations.
• Consider affordable accommodations. Explore cost-effective options such as hostels, vacation rentals, or house-sitting instead of hotels. These can provide comfort without the high price tag.

By incorporating these strategies, you can reduce the overall cost of your trip and borrow less, making your vacation loan more manageable.

FAQ

What credit score do you need to finance a vacation?

The credit score needed to finance a vacation can vary depending on the lender. Many lenders prefer a score of at least 660. Some lenders may approve loans for those with lower scores but often at higher interest rates.

Can I get a vacation loan from a credit union?

Yes, many credit unions offer vacation loans. The requirements and terms can vary, so we recommend consulting with your selected credit union.

Can I get a vacation loan with bad credit?

It might be more challenging to secure a vacation loan with bad credit, but it’s not impossible. Some lenders specialize in loans for individuals with lower credit scores. Remember: Such loans often come with higher interest rates and more stringent conditions.

Recap of the best vacation loans