Best Vacation Loans to Consider in 2023

A vacation loan is a personal loan for vacation expenses. Like other loans, you’ll need to qualify and, if approved, repay the loan with interest. Vacation loans can help save you money if they allow you to take a trip when costs are low versus waiting until you have the cash on hand. To help you get the best deal on travel loans, our financial experts reviewed and ranked more than 30 online lenders.

Because personal loans can have a big impact on your finances, it’s important to spend a little time reviewing your options to make sure you’re not overpaying. Also, it’s usually worth comparing your rates across multiple lenders to ensure you’re getting the best deal for your credit history and financial situation.

Our team of financial experts ranked lenders based on our ratings methodology for personal loans and found the best vacation loans on the market. This ratings methodology evaluates lenders based on loan length, APR, repayment terms, user experience, customer service, credit score history, banking and credit union use, and additional features.

Best Vacation Loans to Consider  in 2023

How to Choose The Best Vacation Loan

If you want to finance a vacation, it’s important to look at more than rates. You’ll also want a loan with terms that work for you. Here are some important features our experts looked at when choosing our list of best vacation loan providers.

• Loan features: You’ll be assigned a repayment period with any loan. How long will you have to pay the money back? Also look at the amount you can borrow and make sure there aren’t limits on how the money can be used.
• Interest rates and fees: This is where shopping around can help. Compare lenders to get the lowest interest rates possible. Also, look for any fees that will be added to your loan.
• Application process: Most online lenders offer an easy online application process. Some allow a quick check to see if you’ll qualify before they run a full credit check on you.
• Qualification process: As with any loan, you’ll need a minimum credit score to qualify. Also, look if there’s a minimum income requirement. Some lenders let you apply with a cosigner or joint applicant to increase your odds of qualifying at a lower rate.
• Customer support: You might need assistance with your loan, either during the application process or while you’re repaying it. Look at the lender’s customer service hours, as well as whether your preferred method of getting help is available.
• Online user reviews: While many lenders will have both good and bad reviews, you can get a feel for any financial service by looking at review trends on sites like Trustpilot.
• Perks and bonuses: Few lenders offer extras that might put them above the competition. Those perks can include repayment flexibility, transparency in their advertising, and faster availability of funds, among many others.

Main Features of The Best Vacation Loans 

What Is a Vacation Loan?

A vacation loan is a personal loan for vacation expenses.Vacation loans usually don’t come with restrictions, as long as you repay them as agreed. With a vacation loan, you can pay for the following expenses:

• Flights
• Hotel rooms
• Vacation rentals
• Rental cars
• Food
• Attractions
• Rideshare services
• Cruise costs
• All-in-one resorts

Your loan isn’t limited to planned vacations. In fact, some people take a personal loan to pay for emergency trips.

The Pros and Cons of Getting a Vacation Loan

It’s easier than ever to get a personal loan for a vacation, thanks to today’s online lending marketplace. But there are some disadvantages to funding your vacation with a vacation loan. Here are some pros and cons to consider.

Pros

• Take advantage of last-minute deals
• Fund emergency travel
• Quick and easy application process
• Could help you stay on budget
• On-time repayments can boost credit

Cons

• Interest can be high
• Some lenders charge fees
• No-interest credit cards could be cheaper

How to Get a Vacation Loan

Getting a vacation loan requires a few steps. As with any loan, you’ll want to do a little research beforehand to know what you’re bringing to the table, as well as what rates you can expect to get from lenders. Here are the steps to follow when you’re ready to start looking for a lender.

• Research your planned vacation to determine roughly how much money you’ll need.
• Check your credit score. Your bank or credit card company may provide this for free.
• If your score needs improvement, request a free credit report and dispute any errors.
• Gather documents, including W-2s and pay stubs, in case lenders request them.
• Pre-apply to multiple vacation lenders to compare rates. Consider using a loan aggregator to get multiple quotes at once.
• Once you’ve chosen a lender, go through the application process.
• Set up autopay to ensure you don’t miss a payment.
• Pay your loan off early if possible to save on interest.

Vacation Loan Alternatives

A personal loan can give you fast access to funds, but it isn’t the only way to pay for a vacation. There are some alternatives to consider, even if it’s just to compare how much it will cost compared to the interest on a vacation loan.

• Set money aside each month. Some lenders even offer special savings accounts called vacation club savings. You could even earn interest on the funds you set aside.
• Side hustles and jobs. If you’re trying to pull together funding, bringing in a little extra money can help. Knowing every dime is going toward your vacation may even be motivating.
• Consider zero-interest credit cards. Some cards offer an introductory period with 0% APR that can help you save money.
• Look into rewards points. If you have a debit or credit card, you may have unused rewards points. You might also have forgotten points from previous trips that can cut your vacation costs.
• Buy now, pay later. If you’re taking a cruise or journeying to an all-inclusive resort, check into any buy now, pay later plans offered by the cruise line or resort. Compare interest rates and terms to what you can get with a personal loan.
• Payment plans. Expedia, JetBlue, and United are just three of the companies offering payment plans for vacations. Some of these are powered by the same lenders offering vacation loans.Be sure you compare the interest rates.

Tips for Successful Vacation Financing

Vacation financing can be a great way to pay for the getaway you need, but it’s important to position yourself for success. Here are some tips to help you successfully fund your vacation.

• Determine how much you’ll need. A vacation to a Florida theme park might cost more than a week at the beach.
• Consider an all-inclusive vacation like a cruise or resort. This will give you a flat fee, making it easier to budget.
• Get the lowest interest rate. The more you can save on interest when financing a vacation, the less you’ll pay overall. Don’t undervalue a percentage point or less in savings. This can add up over the course of your loan.
• Read all the fine print before signing on the dotted line. Are there any hidden fees? What will happen if your payment is a few days late? Make sure there are no prepayment penalties if you think you might want to pay the loan off early.
• Make your loan payment on time each month. Set up autopay or put a reminder in your phone to ensure you don’t miss a payment. No matter where your credit score is now, paying your personal loan on time each month can help strengthen it. This will ensure that future loan applications give you even better rates and terms.

Conclusion

Vacation loans are a great way to get the money you need for a much-needed vacation or emergency trip. If you shop around, you can find one with great terms and low interest rates. The better your credit score, the more competitive your offers will be, allowing you to spend less to pay back the loan. Once you’ve returned from your relaxing trip, make sure you set things up so that you never miss a monthly payment. A small personal loan like a vacation loan can be a great way to strengthen your credit to qualify for future loan opportunities like a car loan or a mortgage.