Vacation loans are unsecured personal loans used to pay for travel. A personal loan can be an expensive way to finance a vacation, so consider all options before borrowing.
This service is free and will not affect your credit score.
Prosper is a peer-to-peer online lending platform that accepts borrowers across the credit spectrum and offers competitive rates and fees. Read our review of Prosper
Best for vacation loans for borrowers with fair credit
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 financing choice for large purchases. Read our review of Upstart
Best for vacation loans for borrowers with bad credit
Upgrade personal loans offer multiple rate discounts and direct payment to creditors. A low minimum credit score requirement makes the perks stand out even more. Read our review of Upgrade
LendingClub personal loans are a solid option for good-credit borrowers looking to consolidate debt and build their credit. Read our review of LendingClub
LendingPoint personal loans are a solid borrowing option for fair- and bad-credit borrowers. They are funded quickly and have some flexible features. Read our review of LendingPoint
How we chose the best personal loans
Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
35+
Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
70+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
Star rating categories
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
Affordability
25%
We review lenders’ annual percentage rate offerings at least twice per year and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.
Customer experience
20%
We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.
Underwriting and eligibility
20%
We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.
Loan flexibility
20%
We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.
Application process
15%
We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.
5.0
Overall score
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 70 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.
See how different loan amounts, rates, and terms affect your monthly payment
Estimated monthly payment
$309.92
Total interest over 3 years
$1,156.95
Total loan payment
$11,156.95
Loan amount
$10,000
$10,000
Interest rate
7.25%
7.25%
Loan term (years)
3
3 years
PRINCIPAL AMOUNT — $10,000TOTAL INTEREST PAID — $1,156.95
90%
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 in the mid-600s or higher — 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 debt, a vacation loan could add financial stress. Even one missed payment could hurt your credit score, plus you’ll incur late fees while still accruing interest, making the trip more expensive than you planned for.
Years of payments: Terms on personal loans range from two to seven years — long after you’ve returned home. Consider how long you want to be paying for your travel before committing to a loan.
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.
But the rate you ultimately get depends mostly on your credit score and your debt-to-income ratio (DTI), which is the percentage of your income that goes toward paying off debt each month. The higher your credit score and the lower your DTI, the more likely you’ll 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 NerdWallet’s free personal loan calculator to estimate your vacation loan’s monthly payments, based on the amount, rate and term.
How to get a vacation loan
If you’re interested in a vacation loan, you can get one in five simple steps:
Check your credit: The first step to getting a vacation loan is to check your credit report, which you can do for free on NerdWallet or at AnnualCreditReport.com. Look for common errors, such as inaccurate credit limits, accounts you don’t recognize or incorrect late payments. Disputing these errors can help your credit score and your chances of getting a better rate. Paying off small debts can also help your credit score.
Know what terms you need: Estimate the total cost of the vacation in advance so you can request the right loan amount. Also, consider how long you want to be paying off your loan, so you know your ideal repayment term. Lenders will ask for these loan details when you pre-qualify.
Pre-qualify: Pre-qualify with multiple lenders to see which lender offers the lowest rate and the repayment term that fits your budget. Pre-qualifying involves filling out a short online application with the lender, and it won’t affect your credit score.
Gather documents and apply: Once you’ve decided on a lender, it’s time to apply. 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. There will be a hard credit pull at this stage, which temporarily knocks a few points off your credit score.
Get funded and prepare to pay off the loan: Many online lenders offer same- or next-day funding, and pretty much all lenders can fund vacation loans within a week of approval. Once you receive the funds in your account, plan for your new loan payment, which starts in about 30 days. Making the monthly payments on time is important for avoiding late fees and hits to your credit.
Before getting a loan, consider these alternatives to finance your trip.
Savings: If there’s still time before your trip, 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.
Travel credit cards: If you travel frequently and have good or excellent credit (a score in the mid-600s or higher), 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 0% APR credit 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 and finance your trip for free.
“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, but BNPL may offer 0% interest. Borrowers with fair or bad credit (any score between 300 to the low 600s) may have an easier time qualifying for BNPL than other financing options.
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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