Best Vacation Loans in April 2025

Everyone deserves some rest and relaxation, but what if you don’t have the cash on hand for a vacation? Rewards credit cards and payment plans offered by travel destinations may be viable options, but one of the most affordable ways to finance your travel is with a vacation loan. Our experts researched the best personal loans for vacations and chose Upgrade as the top pick, based on competitive interest rates, high loan amounts, fast funding, long repayment  terms, and an autopay discount. 

Below, we’ll review the best vacation loans, the pros and cons of borrowing to pay for a trip, and how to get a personal loan for your vacation.

Best vacation loans

Methodology

To find the best vacation loans, Credible editors compared 31 lenders across nearly 900 data points. We began by narrowing the list to lenders that offer personal loans for vacations or travel. Further criteria included interest rates, loan amounts, funding times, fees, and customer service. 

We scored lenders based on the following: 

• Rates and fees: 18%
• Loan terms: 18%
• Customer experience: 17%
• Eligibility: 14%
• Customer satisfaction: 10%
• Efficiency: 10%
• Options for poor credit and no credit: 9%
• Discounts: 4%

Each data point was verified by a senior editor to make sure it was accurate and up to date. Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

How much does a vacation cost?

Online travel guide BudgetYourTrip.com estimates the average cost of a one-week vacation for two inside the U.S. at $4,536. The average American adult’s vacation budget for 2025 is a little over $5,000, according to a study by travel and tourism marketing agency MMGY. The problem with these figures? A recent poll by Newsweek found that 57% of Americans have $5,000 or less in savings.

The cost of a vacation can vary significantly depending on factors including:

• The destination
• The time of year
• The number of people in the travel party
• Modes of transportation
• The type of lodging

For instance, it’s easy to travel on a budget if you drive to a destination, pack your own food, and stick to mostly free activities, such as hiking in a national park or visiting family and friends in another location.

Vacations can also have a lot of hidden costs. Jeff Powell, a travel blogger and custom trip planner with Smoky Mountains Ventures Custom Travel Planning, warns of costs that many travelers forget to budget for, including:

• Tourist taxes (sometimes called a lodging or hotel tax) on top of regular sales taxes
• Parking (“Some cities only offer public parking, often at a cost of $20 a day,” says Powell)
• Tips and gratuities
• Currency exchange rates and foreign transaction fees
• Transportation costs like gas, tolls, rideshare, and public transport
• Vaccinations, depending on where you’re traveling

“I’m the world’s biggest impulse spender,” Powell adds. “Instead of a burger, I’ll decide we need a steak … and an expensive dessert. It’s not unusual for me to walk out of a national park visitor center with a new hat, a couple of shirts, a coffee mug, a couple of books, plus gifts for the grandkids.”

The lesson: When you’re on vacation, you might want to treat yourself more than you would at home. Overestimate when making your meal and souvenir budgets. And remember that tourist destinations may have higher prices than what you’re used to back home.

What are vacation loans and how do they work?

Vacation loans help finance personal travel, including flights, accommodations, and other vacation-related expenses. Personal loans for vacation and travel are typically unsecured loans, meaning you don’t have to provide collateral. Unlike credit cards, they often have fixed APRs and are paid back in equal monthly installments over a set number of years. 

While vacation loans can provide a convenient way to fund your trip, borrowing money always has some less than leisurely aspects. You’ll have to compare lenders, complete an application, sign a loan agreement, and repay the amount you borrowed, inclusive of the loan’s APR (annual percentage rate), which accounts for interest and upfront fees.

Here are some typical features of personal loans:

• APRs: 6.94% - 35.99% APR
• Loan amounts: $1,000 - $50,000, with some lenders offering up to $100,000 
• Repayment terms: 2 - 7 years
• Upfront fees: Origination fees can range between 0% and 12% (not all lenders charge them)
• Time to fund: As soon as same day in some cases, but often within a few business days

Although a small number of online personal loan lenders offer vacation loans, online marketplaces make it easier to shop around for the best terms. Your bank or credit union might also be a good place to look for a vacation loan.

Related: How Do Personal Loans Work?

Pros and cons of vacation loans

Vacation loans have some obvious benefits (as in, helping make the vacation possible), but there are also some disadvantages you should consider.

Pros

• More affordable than paying by credit card: Funding your trip with a credit card is great if you have the money in the bank to pay it off immediately. But the average interest rate on a two-year personal loan is more than 9 percentage points lower than the average credit card interest rate, according to Federal Reserve data.
• Repaying a loan can improve your credit: Payment history accounts for 35% of your FICO score, more than any other factor. Successfully repaying a loan could help you see gradual improvements.
• An investment in your health: Various research studies have found that vacations can reduce stress, depression, and even heart disease. Vacation can also help you catch up on sleep (important for preventing the risk of dementia). 
• You get to go on vacation: This is the biggest reason to get a vacation loan. Tomorrow is never guaranteed, and there are great experiences to be had in the world. While you can’t always splurge on travel, it’s important to occasionally take time away from work and school to see the world and spend time with loved ones.

Cons

• Borrowing costs: Because of interest and potential upfront fees, financing a vacation makes it more expensive than paying out of pocket. For instance, funding a $10,000 vacation with a five-year loan at 18% APR would cost you $5,236 in interest over the life of the loan. You can use our personal loan calculator to find out how much a vacation loan will really cost you.
• Ties up budget: Funding a trip with a vacation loan offers instant gratification; you can have the trip of a lifetime. But when you’re back, you’ll be paying for that trip for years to come, meaning you’ll have less in your monthly budget to pay for other wants and needs. In the example above, that $10,000 vacation would cost $254 a month in monthly payments for five years.
• May not be practical: With other personal loans, such as a home improvement loan or debt consolidation loan, you have a financial incentive. You can improve the resale value of your home, and you can save money in the long run when consolidating high-interest debts. That isn’t so for vacation loans.
• The application can ding your credit score: Although repaying a loan can improve your credit score in the long run, a hard credit inquiry from a loan application can temporarily decrease your credit score by as much as 10 points for up to a year. Increased credit utilization could also bring down your score. 

Vacation loan interest rates

The better your credit score, the lower your interest rate is likely to be. Here are the average rates borrowers received for vacation loans over the last six months on the Credible personal loan marketplace.

What are the requirements for a vacation loan?

To finance your vacation, you’ll need to meet certain personal loan requirements. These vary by lender, but in general, you’ll need:

• Fair or better credit: Minimum credit score requirements for personal loans vary by lender, but many require a score of 640 or higher. Some lenders offer personal loans for bad credit, but APR and fees are typically higher (and loan amounts lower).
• Proof of employment: Generally, lenders want to know that you will have stable income to make monthly payments. Be prepared to offer proof of employment (or other proof of income, if self-employed).
• Proof of identity and residency: Lenders typically require a government-issued ID and your home address. 
• A reasonable debt-to-income ratio: Lenders want to ensure your monthly debt obligations aren’t so high that you’ll struggle to cover your new monthly payment for the vacation loan. That means they look at your debt-to-income ratio (DTI) — how much debt you have relative to your monthly income. Lender requirements vary, but lenders tend to prefer a DTI below 36% for personal loans.

Learn More: What Are the Requirements for a Personal Loan?

How to get a vacation loan

Need help financing your trip? Here’s how to apply for a personal loan to fund your travels:

1. Estimate how much you need to borrow

Borrowing money for a vacation can be expensive. That’s why it’s crucial to only borrow what you need — and not a cent more. Here’s how:

• Calculate the full cost of your trip, including lodging, airfare, ground/water transportation, meals, souvenirs, and activities.
• Add a little extra for unexpected or emergency expenses if you won’t be able to pay for these with a credit card.
• Subtract whatever cash you have saved that you’re willing to spend on the vacation.

These calculations will tell you the amount you need to borrow. If the lender you choose charges an origination fee and deducts it upfront, you may need to borrow a little more to ensure you get the full amount of money you need.

Check Out: How Much of a Personal Loan Can I Get?

2. Compare lenders

Visit local banks and credit unions and research online lenders using an online loan marketplace. Many lenders offer prequalification with no hard credit check, which provides quotes estimating APRs, loan amounts, repayment terms, and fees. Note that prequalification is a way to see quotes, not an actual offer of credit. The terms of a loan offer may differ from prequalification results.

Look at lenders side-by-side, comparing their interest rates, fees, repayment terms, and loan amounts. You may also want to consider factors such as customer service or funding speed, if you need cash urgently.

Check Out: How To Compare Personal Loans: A Step-by-Step Guide 

3. Apply for the loan

Once you’ve selected the best vacation loan for your needs, fill out the application form online. You’ll need some documentation to prove your income, employment, address, and identity.

Lenders typically perform a hard credit inquiry as part of the application process. 

4. Wait for approval and funding

Some lenders offer near-instant approval. Others may take a little more time. Be on the lookout for your approval notice, and review the fine print carefully if you’re offered a loan.

If the APR, loan terms, and monthly payments look agreeable, sign and wait for the funds to be deposited into your bank account.

Learn More: How Long Does It Take To Get a Personal Loan?

How does a vacation loan affect your credit score?

A vacation loan can impact your credit score in several ways:

1. Hard inquiry: A hard inquiry from a personal loan application could lower your credit score by up to 10 points for as long as one year.
2. Amount of debt owed: Borrowing money increases the amount of debt you owe. Because amounts owed is the second-biggest FICO score factor, accounting for 30% of your overall score, increased debt can reduce your credit score.
3. Credit mix: Diversified credit can help improve your credit score. If you don’t already have an installment loan, adding a vacation loan can have a minor positive impact on your credit score over time because your credit becomes more diverse.
4. On-time payments: Your payment history, which accounts for 35% of your FICO score, is the single most important factor affecting your credit score. As long as you make on-time payments over the life of the loan, you may see your score gradually improve.

Learn More: How Does a Personal Loan Affect Your Credit Score?

Tips on getting a vacation loan with bad credit

Lenders often have strict credit requirements for personal loans, but that doesn’t mean a low credit score will entirely prevent you from financing a vacation. Here are some ways to get a personal loan with bad credit:

• Research specific lenders: Some online lenders specialize in personal loans for borrowers with bad credit. Limit your search to such lenders, but understand you may pay more in interest and fees to cover the risk for the lender.
• Add a cosigner: You can improve your odds of approval by applying for a personal loan with a cosigner. The cosigner — usually a trusted loved one — should have good or excellent credit, thus improving your odds and helping you get a lower interest rate. Bear in mind: If you fall behind on payments, you can impact their credit score and finances, too. Not every lender allows a cosigner, so you’ll have to limit your search. These are the best personal loans with cosigner options.
• Offer collateral: Secured personal loans are an option for borrowers with bad credit. These loans require some kind of collateral, such as a car, an investment account, or high-value goods, like jewelry or artwork. Here are the best secured personal loans for vacations.

Alternatives to vacation loans

Vacation loans are a viable option for financing a vacation for which you can’t pay out of pocket, but there are other options to consider:

Credit card

Paying for a trip on a credit card can be costly because of high interest rates. But if you’re able to find a credit card with a 0% introductory APR, you might be able to pay for your vacation and pay it off before interest ever starts to accumulate. The key is not using the credit card for any other purchases and staying focused on paying off the card before the intro rate expires.

If your credit score is strong enough, you may be able to qualify for a travel credit card. These cards often offer sign-up bonuses with major cash back or rewards points when you spend a certain amount in the first few months. Continued usage of the card could earn you even more cash back or points — and some rewards credit cards offer travel insurance. However, travel credit cards may charge steep annual fees.

Payment plans

Some types of travel, such as cruises, theme parks, and all-inclusive resorts, offer payment plans. If you book the travel far in advance, you could potentially have the trip paid off before you actually travel — with no need for a loan.

“Some of the biggest suppliers I work with, like Royal Caribbean and Disney, offer long-term payment plans with down to zero interest (Disney requires their Visa card),” says Julie de la Fe, a travel agent with Travelmation. “Disney Parks, Disney Cruise Line, and Princess Cruise Line also have deposits that are fully refundable until final payment. I encourage my clients to book these well in advance so they can pay them down over time with no penalty.”

Similarly, you can often book lodging via sites such as Airbnb and Booking.com with fully refundable deposits (or no payment until closer to the trip date), allowing you to back out if needed and giving you time to save up for the trip.

Savings account

If your vacation starts in a few weeks and you don’t have money saved up, you obviously can’t rely on your own savings. But if you start planning a vacation a year from now, you can deposit extra cash — a bonus from work, birthday money, tax refund, etc. — into a high-yield savings account, specifically to cover the cost of travel.

Getting a part-time job or side hustle to supplement your income can help you grow those savings faster.

Family and friends

If you’re traveling for a friend’s destination wedding or because your family has asked you to join a big reunion trip, you might feel pressured to go — even if you don’t have the money to do so. In such instances, it’s important to speak openly with your loved one about your financial pressures. In some cases, they may be willing to help you cover the travel costs.

Related: Should You Borrow Money From a Family Member? 

Cheaper destination

You could cut out the need for a vacation loan by choosing a more affordable destination — maybe even a staycation. For instance, international travel is usually more expensive than domestic travel. You can save a lot of money by driving somewhere new instead of flying, or visiting family in a neighboring city, state, or country who are willing to house you for free.

You can also cut down on vacation costs by packing a cooler with food or renting lodging with a kitchen and buying groceries at your destination. Trips based on free or affordable activities — such as state and national parks — can also save you money compared to cruises and theme parks. All-inclusive resorts may also make sense if you’d otherwise be paying for food and drink a la carte.