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Vacation Loans in 2019: Ways to Finance Your Travel

Narottam MedhoraJuly 18, 2019

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Vacation loans are personal loans that you use for travel expenses. Learn the pros and cons of vacation loans and compare loan options from seven lenders.

Our picks for

Vacation loans starting at $1,000

Lending Club

on Lending Club's website

on Lending Club's website

Min. Credit Score

600

Est. APR

6.95-35.89%

Loan Amount

$1,000-$40,000

Pros

  • Offers a loan option with direct payment to creditors.
  • Co-sign option.
  • Offers hardship plan.

Cons

  • Charges origination and late fees.
  • No rate discount for autopayments.
Read full review

Qualifications

  • Minimum credit score of 600.
  • Minimum credit history of 3 years.
  • Debt-to-income ratio of less than 40% for single applications, 35% for joint applicants.

Available Term Lengths

  • 3 to 5 years

Fees

  • Origination fee: 1% - 6%.
  • Late fee: Greater of $15 or 5% of payment after 15-day grace period.
  • Check processing fee: $7.

Disclaimer: *All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: 595 Market St suite 200 San Francisco Ca 94105. **Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20, 2018. The time it will take to fund your loan may vary.

Upstart

on Upstart's website

on Upstart's website

Min. Credit Score

620

Est. APR

7.69-35.99%

Loan Amount

$1,000-$50,000

Pros

  • Accepts borrowers new to credit.
  • Fast funding.

Cons

  • Origination and late fees.
  • No secured or co-sign option.
Read full review

Qualifications

  • Minimum credit score: 620.
  • Minimum credit history: None.
  • Minimum annual income: $12,000.
  • Max debt-to-income ratio: 45%.

Available Term Lengths

  • 3 to 5 years

Fees

  • Origination fee: 0% - 8%.
  • Late fee: 5% of past due amount or $15, whichever is greater.

Disclaimer: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5,001. The minimum loan amount in GA is $3,100. The full range of available rates varies by state. The average 3-year loan on Upstart will have an APR of 20% and 36 monthly payments of $35 per $1,000 borrowed. There is no down payment and no prepayment penalty. The average APR on Upstart is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

Our pick for

Vacation loans above $2,000

BestEgg

on Best Egg's website

on Best Egg's website

Min. Credit Score

640

Est. APR

5.99-29.99%

Loan Amount

$2,000-$35,000

Pros

  • Fast funding.
  • Low starting rates.
  • Pre-qualify with a soft credit check.

Cons

  • Origination and late fees.
  • Typical borrower has several years of credit history.
Read full review

Qualifications

  • Minimum credit score: 640.
  • Minimum credit history: Not specified.
  • Minimum annual income: Not specified, but average is $80,000.
  • Debt-to-income ratio: Not specified, but typically less than 35%.

Available Term Lengths

  • 3 to 5 years

Fees

  • Origination fee: 0.99% - 5.99%.
  • Late fee: $15.
  • Return fee: $15 if payments are not processed.

Disclaimer: The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99%-29.99%, which may include an origination fee from 0.99%–5.99% that is deducted from loan proceeds. Any origination fee on a loan term 4-years or longer will be at least 4.99%. The loan term and the APR offered will depend on your credit score, income, debt payment obligations, loan amount, credit usage history and other factors. Additionally, the APR offered is impacted by your loan term and may be higher than our lowest advertised rate. Requests for the highest loan amount may result in an APR higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest rate. Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. Equal Housing Lender. "Best Egg" is a trademark of Marlette Funding, LLC. All uses of "Best Egg" on this site mean and shall refer to "the Best Egg personal loan" and/or "Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan," as applicable. Loan amounts generally range from $2,000-$35,000. Offers up to $50,000 may be available for qualified customers who receive offer codes in the mail. The minimum individual annual income needed to qualify for a loan of $50,000 is $130,000. Borrowers may hold no more than two open Best Egg loans at any given time. In order to be eligible for a second Best Egg loan, your existing Best Egg loan must have been open for at least four months. Total existing Best Egg loan balances must not exceed $50,000. All loans in MA must exceed $6,000; in NM, OH must exceed $5,000; in GA must exceed $3,000. Borrowers should refer to their loan agreement for specific terms and conditions. Your verifiable income must support your ability to repay your loan. Upon loan funding, the timing of available funds may vary depending upon your bank's policies. To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.

Our picks for

Vacation loans above $2,000

Discover
See my rates

on NerdWallet's secure website

See my rates

on NerdWallet's secure website

Min. Credit Score

660

Est. APR

6.99-24.99%

Loan Amount

$2,500-$35,000

Pros

  • Free credit score access.
  • No origination fee.
  • Option to directly pay creditors.
  • Flexible payment options.

Cons

  • Charges late fees.
  • No refinancing option.
Read full review

Qualifications

  • Minimum credit score required: 660; borrowers' average score is about 750.
  • Minimum gross income required: $25,000, but typically much higher.
  • Minimum credit history: Not provided.
  • Maximum debt-to-income ratio: Not provided.

Available Term Lengths

  • 3 to 7 years

Fees

  • Origination fee: None.
  • Late fee: $39.

Disclaimer: This is not a commitment to lend from Discover Personal Loans. Your approval for a loan is determined once you apply and is based on your application information and credit history. Your APR will be between 6.99-24.99% based upon creditworthiness at time of application. Not all applications will be approved.

RocketLoans

on Rocket Loans's website

on Rocket Loans's website

Min. Credit Score

640

Est. APR

5.98-29.99%

Loan Amount

$2,000-$45,000

Pros

  • Fast funding.
  • Soft credit check with application.
  • Low starting rates.

Cons

  • Origination and late fees.
  • Does not offer direct payment to creditors for debt consolidation loans.
  • No co-sign or secured loan option.
Read full review

Qualifications

  • Minimum credit score: 640, but average is higher.
  • Minimum credit history: Two years.
  • Minimum annual income: $40,000, but average is $78,000.
  • Debt-to-income ratio: Not specified.

Available Term Lengths

  • 3 to 5 years

Fees

  • Origination fee: 1% - 6%.
  • Late fee: $15 after 10-day grace period.
  • Unsuccessful payment fee: $15.

Disclaimer: All personal loans are made by Cross River Bank, a New Jersey state chartered commercial bank, Member FDIC, Equal Housing Lender. All loans are unsecured, fully amortizing personal loans. Eligibility for a loan is not guaranteed. Please refer to our Disclosures and Licenses page for state required disclosures, licenses, and lending restrictions. Borrower must be a U.S. citizen or permanent U.S. resident alien at least 18 years of age (in Nebraska and Alabama a borrower must be at least 19 years of age). All loan applications are subject to credit review and approval. Offered loan terms depend upon your credit profile, requested amount, requested loan term, credit usage, credit history and other factors. Not all borrowers receive the lowest interest rate. To qualify for the lowest rate, you must have excellent credit, meet certain conditions, and select autopay. Rates and Terms are subject to change at any time without notice. Please refer to RocketLoans.com and our Terms of Use for additional terms and conditions.

Our picks for

Vacation loans above $3,500

Earnest

on Earnest's website

Min. Credit Score

680

Est. APR

6.99-18.24%

Loan Amount

$5,000-$75,000

Pros

  • No fees.
  • Flexible payments.

Cons

  • No co-sign or secured loan options.
  • Requires permission to scan checking account.
Read full review

Qualifications

  • Minimum credit score: 680.
  • Proof of consistent income.
  • No open collections accounts.
  • Live in the District of Columbia or a state other than Alabama, Delaware, Kentucky, Nevada or Rhode Island.

Available Term Lengths

  • 3 to 5 years

Fees

  • Origination fee: None.
  • Late fee: None.

Disclaimer: To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application. Earnest offers personal loans with fixed interest rates between 6.99% APR and 18.24% APR for three, four, or five year terms. Earnest rate ranges are current as of 07/03/2019 and are subject to change based on market conditions and borrower eligibility. The information provided on this page is updated as of 07/03/19. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 303 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of- service, e-mail us at hello@earnest.com, or call 888-601-2801 for more information on our personal loan product.

Marcus by Goldman Sachs

on Goldman Sachs's website

Min. Credit Score

660

Est. APR

5.99-28.99%

Loan Amount

$3,500-$40,000

Pros

  • No fees.
  • Flexible payment options.
  • Directly pays creditors for debt consolidation loans.

Cons

  • Requires good credit.
  • No co-sign option.
Read full review

Qualifications

  • At least 18 years old (19 in Alabama; 21 in Mississippi and Puerto Rico).
  • Valid U.S. bank account, Social Security number or tax ID.
  • 660+ credit score.

Available Term Lengths

  • 3 to 6 years

Fees

  • Origination fee: None.
  • Late fee: None.

Disclaimer: Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans).Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs® is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.

Summary of Vacation Loans in 2019: Ways to Finance Your Travel

LenderBest ForEst. APRMin. Credit ScoreLearn More
Lending Club

LendingClub

on Lending Club's website

Vacation loans starting at $1,000

6.95-35.89%

600

on Lending Club's website

Upstart

Upstart

on Upstart's website

Vacation loans starting at $1,000

7.69-35.99%

620

on Upstart's website

BestEgg

Best Egg

on Best Egg's website

Vacation loans above $2,000

5.99-29.99%

640

on Best Egg's website

Discover

Discover Personal Loan

See my rates

on NerdWallet's secure website

Vacation loans above $2,000

6.99-24.99%

660

See my rates

on NerdWallet's secure website

RocketLoans

Rocket Loans

on Rocket Loans's website

Vacation loans above $2,000

5.98-29.99%

640

on Rocket Loans's website

Earnest

Earnest Personal Loan

on Earnest's website

Vacation loans above $3,500

6.99-18.24%

680

on Earnest's website

Marcus by Goldman Sachs

Marcus by Goldman Sachs

on Goldman Sachs's website

Vacation loans above $3,500

5.99-28.99%

660

on Goldman Sachs's website

LenderBest ForEst. APRMin. Credit ScoreLearn More
Lending Club

LendingClub

on Lending Club's website

Vacation loans starting at $1,000

6.95-35.89%

600

on Lending Club's website

Upstart

Upstart

on Upstart's website

Vacation loans starting at $1,000

7.69-35.99%

620

on Upstart's website

BestEgg

Best Egg

on Best Egg's website

Vacation loans above $2,000

5.99-29.99%

640

on Best Egg's website

Discover

Discover Personal Loan

See my rates

on NerdWallet's secure website

Vacation loans above $2,000

6.99-24.99%

660

See my rates

on NerdWallet's secure website

RocketLoans

Rocket Loans

on Rocket Loans's website

Vacation loans above $2,000

5.98-29.99%

640

on Rocket Loans's website

Earnest

Earnest Personal Loan

on Earnest's website

Vacation loans above $3,500

6.99-18.24%

680

on Earnest's website

Marcus by Goldman Sachs

Marcus by Goldman Sachs

on Goldman Sachs's website

Vacation loans above $3,500

5.99-28.99%

660

on Goldman Sachs's website

» MORE: Compare personal loan rates and terms

Pros and cons of vacation loans

Vacation loans can be a convenient solution if you must travel unexpectedly and need cash fast, but consider the pros and cons before you take a loan.

Pros

  • Lower rates: For well-qualified borrowers, personal loans typically have lower interest rates than credit cards. The average rate for personal loans with two-year terms in 2017 was 10.13%, according to the Federal Reserve, while the average rate on credit card accounts that incurred interest was 14.44%. So if you planned to use a high-interest card and carry a balance, you may pay less with a vacation loan.
  • More predictable: Personal loans have fixed monthly payments, which means you can plan for repayments in your budget. This is particularly appealing if you find tracking revolving payments associated with credit cards a hassle. Knowing when you’ll pay off the debt also helps you stay focused.

» MORE: NerdWallet's guide to smarter travel

Cons

  • Risky debt: Most financial experts discourage use of a loan, or even a credit card, for discretionary vacation spending. If you’re not comfortable managing credit or you have existing debt, a vacation loan can add financial stress. A missed payment means late fees and added interest that can quickly increase the cost of your trip.
  • Long terms: Terms on personal loans can stretch to five years — long after you’ve returned from your vacation. You’ll want to carefully consider how long it makes sense to be paying for your travel.

How much would it cost?

As with most credit products, the rate you receive on a personal loan depends a lot on your credit score. The better your score, the lower your rate and the less interest you’ll pay over the life of the loan. The interest rate also affects your total monthly payment, as does the term length; a longer term means lower monthly payments, but more interest.

Use our personal loan calculator to estimate your monthly payments based on your credit score.

Alternatives to vacation loans

Before you take a loan, consider these alternatives for financing your trip.

Savings: If you have time, start saving. Create a dedicated travel savings account and put away some money each month. Find out how much your trip will cost by comparing prices of flights, hotel rooms and car rentals at travel websites like Expedia and Kayak.

Travel credit cards: If you travel frequently and have good to excellent credit, you may qualify for a travel credit card that offers a sign-up bonus and other perks that could help lower the cost of your trips in the long run.

0% credit card: If you have good credit, you may also qualify for a low-interest or 0% intro APR card that allows you to carry a balance interest-free for up to over a year. It’s an option if you want to avoid paying interest in the short term.

Point-of-sale travel financing: Some lenders such as UpLift and Affirm have partnered with major airlines and travel websites to include financing options for travelers when they book their tickets. These lenders target people with average credit who may not qualify for a travel card.

How to pre-qualify for a vacation loan

Taking the steps to pre-qualify for an online vacation loan lets you see potential loan terms, including the loan’s interest rate and monthly payments. You can pre-qualify on NerdWallet to compare loan offers from multiple lenders and find the lowest rate.

Last updated on July 18, 2019

Methodology

NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.

To recap our selections...

NerdWallet's Vacation Loans in 2019: Ways to Finance Your Travel