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Get a 0.50% discount on your next loan from SoFi, NerdWallet's 2024 Best Personal Loan winner. Offer expires 01/06/25. Click on "View details" for offer terms*
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Offer terms:
LightStream: Best for Vacation loans for borrowers with good or excellent credit
Est. APR
6.99-25.29%
Loan amount
$5K-$100K
Min. credit score
660
View details
Qualifications:
LightStream is a solid option for good-credit borrowers, with no fees and low rates that vary based on loan purpose.
- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
- Origination fee: None.
- Late fee: None.
Discover® Personal Loans: Best for Vacation loans for borrowers with good or excellent credit
Est. APR
7.99-24.99%
Loan amount
$2.5K-$40K
Min. credit score
660
View details
Qualifications:
With competitive rates and no origination fees, Discover personal loans are good options for borrowers with good and excellent credit.
- Minimum credit score: 660.
- Minimum annual household income: $25,000. Income can come from employment, retirement, alimony, child support, Social Security payments and disability benefits.
- Must provide a valid U.S. address and email address.
- Must be 18 years old with a valid Social Security number.
- Origination fee: None.
- Late fee: $39.
SoFi Personal Loan: Best for Vacation loans for borrowers with good or excellent credit
Est. APR
8.99-29.99%
Loan amount
$5K-$100K
Min. credit score
None
View details
Qualifications:
Qualified borrowers will find few lenders better than SoFi, thanks to thoughtful perks like unemployment protection and free financial advising.
- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
- Origination fee: 0% to 7%.
- Late fee: None.
Prosper: Best for Vacation loans for borrowers with fair or bad credit
View details
Qualifications:
Prosper accepts borrowers across the credit spectrum and offers competitive rates and fees, plus instant approval.
- Minimum credit score: 560; borrower average is 709.
- Minimum income: No minimum requirement; borrower average is $137,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.05% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
- Origination fee: 1% to 9.99%.
- Late fee: The greater of $15 or 5% of the unpaid amount.
- Insufficient funds fee: $15.
- Mailed-in payment fee: $5.
Upstart: Best for Vacation loans for borrowers with fair or bad credit
Est. APR
7.80-35.99%
Loan amount
$1K-$50K
Min. credit score
None
View details
Qualifications:
Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid choice for financing large purchases.
- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Best Egg: Best for Vacation loans for borrowers with fair or bad credit
Est. APR
7.99-35.99%
Loan amount
$2K-$50K
Min. credit score
600
View details
Qualifications:
Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt, but the loans come with an origination fee.
- Minimum credit score: 600.
- Maximum debt-to-income ratio: 70% including a mortgage.
- Minimum credit history: 3 years and 1 account.
- Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident and at least 18 years of age.
- Origination fee: 0.99% - 9.99%.
LendingClub: Best for Small vacation loans
Est. APR
8.91-35.99%
Loan amount
$1K-$40K
Min. credit score
600
View details
Qualifications:
LendingClub personal loans are a solid option for good-credit borrowers looking to consolidate debt and build their credit.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 3% to 8%.
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
Upgrade: Best for Small vacation loans
Est. APR
9.99-35.99%
Loan amount
$1K-$50K
Min. credit score
580
View details
Qualifications:
Upgrade personal loans come with multiple rate discounts and offer direct payment to creditors. This lender has a low minimum credit score requirement, making the perks stand out even more.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
LightStream: Best for Vacation loans for borrowers with good or excellent credit
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
LightStream is a solid option for good-credit borrowers, with no fees and low rates that vary based on loan purpose.
- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
- Origination fee: None.
- Late fee: None.
Discover® Personal Loans: Best for Vacation loans for borrowers with good or excellent credit
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
With competitive rates and no origination fees, Discover personal loans are good options for borrowers with good and excellent credit.
- Minimum credit score: 660.
- Minimum annual household income: $25,000. Income can come from employment, retirement, alimony, child support, Social Security payments and disability benefits.
- Must provide a valid U.S. address and email address.
- Must be 18 years old with a valid Social Security number.
- Origination fee: None.
- Late fee: $39.
SoFi Personal Loan: Best for Vacation loans for borrowers with good or excellent credit
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
Qualified borrowers will find few lenders better than SoFi, thanks to thoughtful perks like unemployment protection and free financial advising.
- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
- Origination fee: 0% to 7%.
- Late fee: None.
Prosper: Best for Vacation loans for borrowers with fair or bad credit
View details
Qualifications:
Prosper accepts borrowers across the credit spectrum and offers competitive rates and fees, plus instant approval.
- Minimum credit score: 560; borrower average is 709.
- Minimum income: No minimum requirement; borrower average is $137,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.05% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
- Origination fee: 1% to 9.99%.
- Late fee: The greater of $15 or 5% of the unpaid amount.
- Insufficient funds fee: $15.
- Mailed-in payment fee: $5.
Upstart: Best for Vacation loans for borrowers with fair or bad credit
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid choice for financing large purchases.
- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Best Egg: Best for Vacation loans for borrowers with fair or bad credit
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt, but the loans come with an origination fee.
- Minimum credit score: 600.
- Maximum debt-to-income ratio: 70% including a mortgage.
- Minimum credit history: 3 years and 1 account.
- Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident and at least 18 years of age.
- Origination fee: 0.99% - 9.99%.
LendingClub: Best for Small vacation loans
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
LendingClub personal loans are a solid option for good-credit borrowers looking to consolidate debt and build their credit.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 3% to 8%.
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
Upgrade: Best for Small vacation loans
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
Upgrade personal loans come with multiple rate discounts and offer direct payment to creditors. This lender has a low minimum credit score requirement, making the perks stand out even more.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
What is a vacation loan?
A vacation loan is an unsecured personal loan used to pay for travel expenses, including flights, hotels, rental cars, meals or anything else trip-related.
These loans don’t require collateral and are repaid in fixed monthly installments, meaning the monthly payment won’t change over the course of the loan. Online lenders, banks and credit unions all offer vacation loans.
Most financial experts advise against incurring debt for discretionary vacation spending. For urgent travel, and when a loan is your cheapest option, borrowing may make sense. But make sure the monthly payments fit into your budget, and commit to paying off the loan on time.
Pros and cons of vacation loans
Weigh the pros and cons of a vacation loan to see if it’s the right choice for financing a trip.
Pros of vacation loans
Low rates for some: For well-qualified borrowers — those with strong income and credit scores above 690 — personal loans can have lower annual percentage rates (APRs) than credit cards.
Receive the money in a lump sum: You receive funds from a personal loan all at once, rather than over time as you spend money. Having a fixed amount can help you plan and stick to your vacation budget.
Predictable monthly payments: Personal loans have fixed interest rates, which means you’ll have a fixed monthly payment for the full loan term. Working toward a set debt payoff date can also help you stay focused on making payments.
Cons of vacation loans
Potentially risky debt: If you struggle to repay other debts, a vacation loan could add financial stress. Even one missed payment could cause a hit to your credit score, plus you’ll incur late fees while still accruing interest, making the trip more expensive than intended.
Years of payments: Terms on personal loans range from two to seven years — long after you’ve returned home. Carefully consider how long you want to be paying for your travel.
Vacation loan rates
Annual percentage rates on personal loans range from about 6% to 36%, and some lenders may use the reason for the loan to help decide your rate and loan amount.
The rate you ultimately get depends primarily on your credit score and debt-to-income ratio, the percent of your income that goes to other debts each month. The higher your credit score and the lower your DTI, the more likely you are to get a low rate on a vacation loan. A lower rate means a less expensive loan.
For example, a two-year loan of $3,000 with an APR of 11% would cost about $140 in monthly payments and $3,356 overall. That same loan with a 25% APR would require monthly payments of $160 and cost $3,843.
Use our personal loan calculator to estimate monthly payments based on the loan amount, rate and term.
» MORE: Average personal loan rates
How to get a vacation loan
If you’re interested in a vacation loan, you can get one in four simple steps:
Check your credit report and address any delinquent accounts or errors before you apply.
Estimate the total cost of the vacation in advance so you can request the right loan amount.
Pre-qualify with multiple lenders to see which offers the lowest rate and repayment terms that fit your budget. Pre-qualifying doesn’t affect your credit score.
Gather the necessary documents — including proof of identity, W-2s or pay stubs, your Social Security number and bank account numbers — and submit a formal application.
» GET STARTED: Pre-qualify for free on NerdWallet to compare loan offers
Alternatives to vacation loans
Before getting a loan, consider these alternatives to finance your trip.
Savings: If there’s time, start saving. Create a dedicated travel savings account and put away some money each month. Find out how much the trip will cost by comparing prices of flights, hotel rooms and car rentals on travel websites.
» MORE: How to travel on a budget
Travel credit cards: If you travel frequently and have good or excellent credit (690 or higher credit score), you may qualify for a travel credit card that offers a sign-up bonus and other perks that could help lower the cost of 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, typically for 15 to 21 months. That means if you can pay off the trip in that time, you can skip the interest altogether.
“Buy now, pay later” loans: Some lenders, like Uplift and Affirm, partner with major airlines, hotel companies and travel websites to include BNPL financing for travelers when they book their tickets. This means you can make your purchase now, but pay for it in installments, similar to a personal loan. Borrowers with fair or bad credit (below 690 credit score) may have an easier time qualifying for BNPL than with other financing options.
Last updated on May 30, 2024
Frequently asked questions
- What is a vacation loan?
A vacation loan is an unsecured personal loan used to pay for travel expenses, like flights, hotels or meals out.
- Can you finance a vacation?
You can finance a vacation with a personal loan or credit card, but it typically costs interest. The cheapest option is paying for a vacation with savings.
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Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 50 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
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NerdWallet's Vacation Loans: Finance Your Travel in 2024
- LightStream: Best for Vacation loans for borrowers with good or excellent credit
- Discover® Personal Loans: Best for Vacation loans for borrowers with good or excellent credit
- SoFi Personal Loan: Best for Vacation loans for borrowers with good or excellent credit
- Prosper: Best for Vacation loans for borrowers with fair or bad credit
- Upstart: Best for Vacation loans for borrowers with fair or bad credit
- Best Egg: Best for Vacation loans for borrowers with fair or bad credit
- LendingClub: Best for Small vacation loans
- Upgrade: Best for Small vacation loans
