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Best Vacation Loans Of 2024

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Lead Editor, Mortgages & Loans

Reviewed

Updated: Mar 1, 2024, 10:29am

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

If you have urgent travel plans and no time to save up, a vacation loan can help make your trip possible. A vacation loan is an unsecured personal loan, which you can use for just about any purpose—including vacations or travel.

We caution against taking on vacation debt because it’s risky. If you do need to do so, it’s best to be smart about it. Compare the best vacation loans below.

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Why you can trust Forbes Advisor

Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the loans methodology for the ratings below.

  • 29 nationwide lenders researched
  • 16 data points evaluated and scored
  • 4 levels of fact-checking

Best Vacation Loans March 2024

Best Overall Vacation Loan

SoFi®

4.0

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum Credit Score

650

APR range

8.99% to 29.99%

with autopay

Loan amounts

$5,000 to $100,000

Compare Rates Arrow

Via Credible.com’s Website

650

8.99% to 29.99%

with autopay

$5,000 to $100,000

Why We Picked It

SoFi is an online lending platform that offers unsecured fixed-rate personal loans in every state. Founded in 2011, SoFi has extended over $50 billion in loans and stands out for allowing high loan amounts and its availability of extended loan terms.

Loans are available from $5,000 to $100,000, making SoFi a great option for those with excellent credit who need to borrow a large amount of money. Loan amounts available may vary by the state you live in. Repayment terms range from two to seven years, making SoFi an incredibly flexible option for those with sufficient credit (minimum 650) and annual income (at least $45,000). SoFi also lets prospective borrowers submit joint applications—although co-signers are not permitted.

Approved borrowers are rewarded with comparatively low APRs. What’s more, SoFi doesn’t charge origination fees, late fees or prepayment penalties—a stand-out feature because personal loan lenders often charge origination or late payment fees at a minimum.

However, if you’re considering a debt consolidating loan from SoFi, keep in mind that the lender does not offer direct payment to a borrower’s other creditors. This means the loan proceeds will be deposited to your bank account and you’ll have to pay off your other lenders individually. The platform does offer customers a number of other perks and discounts.

Pros & Cons
  • Prequalification with soft credit check
  • Funding in as little as one to two days
  • High loan amounts and lengthy terms
  • Does not offer direct payment to third-party creditors for debt consolidation
  • Some applicants report difficult qualification standards
  • Co-signers are not permitted

Details

Eligibility:

  • Minimum credit score required: 650
  • Minimum annual income: $45,000
  • Co-signers not permitted

Loan uses:

  • Medical expenses
  • Credit card consolidation
  • Home projects
  • Moving costs

Best for Low Interest Rates

LightStream

4.0

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum Credit Score

660

APR range

7.49% to 25.49%

with autopay

Loan amounts

$5,000 to $100,000

Compare Rates Arrow

Via Credible.com’s Website

660

7.49% to 25.49%

with autopay

$5,000 to $100,000

Why We Picked It

LightStream offers loans with both a low minimum and maximum interest rate, along with a rate-beat program. LightStream’s unsecured personal loans range from $5,000 to $100,000 with loan amounts varying based on the loan purpose. In addition to offering appealing and flexible terms, LightStream charges no origination, late payment or prepayment fees. The lender also offers a 0.50% rate discount for borrowers who enroll in autopay.

Pros & Cons
  • No origination, prepayment or late fees
  • Low, competitive rates
  • Fast approval and funding
  • No prequalification process
  • No due date flexibility
  • Limitations on use of loan proceeds

Details

Eligibility:

  • Applicants should have several years of credit history
  • Minimum credit score: 660
  • Can’t prequalify

Loan uses:

  • Large expenses
  • Finance land, timeshares and tiny homes
  • Home project

Best for Fast Funding & Below-Average Credit

LendingPoint

4.0

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum Credit Score

600

APR range

7.99% to 35.99%

with autopay

Loan amounts

$2,000 to $36,500

Compare Rates Arrow

Via Fiona.com’s Website

600

7.99% to 35.99%

with autopay

$2,000 to $36,500

Why We Picked It

LendingPoint is an online lender based in Atlanta that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it does not offer loans in Nevada and West Virginia. Prospective borrowers in eligible states can apply online and benefit from quick funding.

LendingPoint personal loans range from $2,000 to $36,500; Georgia loans have a minimum loan amount of $3,500. Repayment terms range from 24 to 72 months—or two to six years.

There are two main disadvantages to LendingPoint: high maximum APRs and origination fees. While you can typically avoid high APRs by maintaining a high credit score, LendingPoint origination fees (up to 10%) depend on the state you live in.

Pros & Cons
  • Quick funding
  • Low credit score requirements
  • No prepayment penalty
  • Origination fee up to 10%
  • Co-signers or joint loans not permitted
  • Not available in Nevada and West Virginia

Details

Eligibility: 

  • Minimum credit score: 600
  • Must live in a state other than Nevada or West Virginia
  • Doesn’t allow co-signers or co-applicants

Loan uses:

  • Debt consolidation
  • Home project
  • Medical expenses

Best for Bad Credit

Upgrade

3.5

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum Credit Score

580

APR range

8.49% to 35.99%

Loan amounts

$1,000 to $50,000

Compare Rates Arrow

Via Credible.com’s Website

580

8.49% to 35.99%

$1,000 to $50,000

Why We Picked It

Upgrade was launched in 2017 and provides accessible online and mobile credit and banking services. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services. Although maximum APRs are on the high end compared to other online lenders, Upgrade makes loans available to those with poor credit history.

Loans amounts, which range from $1,000 to $50,000. Upgrade has two- to seven-year terms  available. Upgrade charges an origination fee between 1.85% and 9.99% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay. That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you’re able to pay it off early.

Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy to track your credit score over the life of your loan.

Pros & Cons
  • Low minimum credit score requirement
  • Borrowers can use loans to cover business expenses
  • Offers direct lender payoff for debt consolidation loans
  • High APR range
  • Charges fees for origination, late payment and insufficient funds

Details

Eligibility: 

  • Minimum credit score: 580
  • No minimum income requirement
  • Allows co-applicants

Loan uses:

  • Debt consolidation
  • Home projects
  • Large expenses
  • Business expenses

Best for Comparing Multiple Offers

Universal Credit

3.5

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum Credit Score

580

APR range

11.69% to 35.99%

Loan amounts

$1,000 to $50,000

Compare Rates Arrow

Via Credible.com’s Website

580

11.69% to 35.99%

$1,000 to $50,000

Why We Picked It

Universal Credit is an online lending platform that offers personal loans between $1,000 to $50,000 through its partners. Repayment terms range from three to seven years.

While Universal Credit makes finding a personal loan accessible even to those with damaged credit, it comes with a few tradeoffs. First, it charges high APRs, well above the most competitive rates seen on our list. Second, Universal Credit charges a 5.25% to 9.99% origination fee on all personal loans. Because this is deducted from your loan proceeds, you’ll need to factor this in when determining your loan amount to ensure you receive the necessary amount after the fact.

Pros & Cons
  • Flexible qualification requirements
  • Next-day funding
  • No prepayment penalty
  • High APRs
  • All personal loans charge a 5.25% to 9.99% origination fee

Details

Eligibility:

  • Minimum credit score: 580
  • Minimum income requirement: Does not disclose
  • Doesn’t allow co-signers or co-borrowers

Loan uses:

  • Debt consolidation
  • Large expense
  • Home project

Best for No Interest if Repaid Within 30 Days

Discover

3.5

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum Credit Score

660

APR range

7.99% to 24.99%

Loan amounts

$2,500 to $40,000

Learn More Arrow

Read Our Full Review

660

7.99% to 24.99%

$2,500 to $40,000

Why We Picked It

Discover is an online bank that also offers customers credit cards, retirement solutions and personal loans in all 50 states. As a lending platform, Discover stands out because of its online application and mobile banking tools, well-reviewed customer support team and quick funding.

In general, loans are available from $2,500 to $40,000 and may be issued for between three and seven years. So, while borrowers may get a larger loan from another lender, the repayment terms are fairly flexible. Discover charges a late payment fee and does not offer an autopay discount; however, it does not charge any origination fees or prepayment penalties, making it competitive with other top personal loan providers.

Pros & Cons
  • Option to pay off creditors directly
  • No origination fees or prepayment penalties
  • Directly pays creditors
  • Charges late fees
  • Low maximum loan amount

Details

Eligibility: 

  • Minimum credit score: 660
  • Minimum household income: $25,000
  • Doesn’t allow co-signers or co-borrowers

Loan uses:

  • Medical bills
  • Business expenses
  • Home renovation

Summary Of Best Holiday Loans Of 2024

Company Forbes Advisor Rating Minimum credit score APR range Loan amounts Learn More
SoFi® 4.0 4-removebg-preview-2 (1) 650 8.99% to 29.99% $5,000 to $100,000 Compare Rates Via Credible.com's Website
LightStream 4.0 4-removebg-preview 660 7.49% to 25.49% $5,000 to $100,000 Compare Rates Via Credible.com's Website
LendingPoint 4.0 4-removebg-preview-2 (1) 600 7.99% to 35.99% $2,000 to $36,500 Compare Rates Via Fiona.com's Website
Upgrade 3.5 3.5-removebg-preview-1 580 8.49% to 35.99% $1,000 to $50,000 Compare Rates Via Credible.com's Website
Universal Credit 3.5 3.5-removebg-preview 580 11.69% to 35.99% $1,000 to $50,000 Compare Rates Compare rates from participating lenders via Forbes Advisor
Discover 3.5 3.5-removebg-preview-1 660 7.99% to 24.99% $2,500 to $40,000 Compare Rates Via Fiona.com's Website

Methodology

We reviewed 29 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:

  • Loan cost: 35%
  • Loan details: 20%
  • Eligibility and accessibility: 20%
  • Customer experience: 15%
  • Application process: 10%

Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.

Where appropriate, we awarded partial points depending on how well a lender met each criterion.

To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.

Tips To Compare Personal Loans for Vacations

Here are a few things to think about as you sort through your loan offers:

  • APR: Use the annual percentage rate (APR) to compare the cost of different loans because it includes both interest and fees into one number, rather than having to compare those figures separately.
  • Term length: Lenders may offer you a range of options, typically from one to seven years. Longer term loans have smaller monthly payments but usually cost more over time.
  • Loan amount: You can specify how much you want to borrow, but depending on your credit and income, you may not qualify for the full amount. Compare various loan offers to find one that suits your needs.
  • Monthly payment: Make sure your new monthly payment fits into your budget. Remember, taking out a vacation loan now makes it even harder to save up in advance for your next vacation.
  • Other features: Some lenders offer special touches like being able to choose your own payment due date or postpone a payment if needed.

What Is a Vacation Loan?

Vacation loans are unsecured personal loans, meaning they’re not backed by collateral, that you can use to pay for travel. Even if a lender doesn’t advertise a personal loan as a vacation loan, you can use the funds to pay for transportation, hotels, rental cars and other travel-related expenses.

How Do Vacation Loans Work?

If you’re approved for a vacation loan, you’ll usually receive the funds within a few days. It’ll be disbursed as a lump-sum payment typically via direct deposit or a check. You can use these funds for just about any travel-related expenses you want.

Repayment typically starts the month after you receive the money. Depending on when you receive the funds in relation to your travel dates, you might need to start repaying your loan before, during or after your trip. It’s always a good idea to sign up for autopay immediately after receiving the loan so you don’t miss a payment.

Terms typically range from one to seven years and rates range from 4% to 26%.

How to Get a Vacation Loan

Getting a vacation loan can be simpler compared to other types of debt. Here’s how to apply for a vacation loan and find the best one for you:

  1. Check your credit. Be sure to check your credit score first to make sure it gives lenders an accurate picture. If you know your credit score, you’ll also have some idea of which lenders may approve you.
  2. Gather your documents. Most lenders want to see your most recent tax return, current pay stubs and bank statements to get an idea of your financial situation. Get these together in advance so you don’t have to scramble later.
  3. Shop around. Check your rate with as many lenders as you can that offer prequalification. They’ll generally do a soft credit pull, which won’t impact your credit score.
  4. Choose the best lender. Most people go with the cheapest option. Swing back around to that lender and complete the full application. This is when they’ll generally do a hard credit check, which may temporarily drop your score.
  5. Keep in touch. Your lender might reach out to you for more information while they’re making a decision on your loan. Make sure you’re keeping an eye out for any phone calls or emails so you can respond quickly and speed up your loan application.

Pros and Cons of Vacation Loans

Pros Cons
Require no collateral
Makes it harder to save up for your next vacation
Can make travel plans possible
Interest rates increase your overall trip cost
Builds your credit if you pay on time monthly
Payments typically last years longer than your vacation itself
Steady, fixed payments that are easy to budget for
Damages your credit if you make any late payments or default

Vacation Loan Alternatives

Taking out a vacation loan should be a last resort. There are many better options to try first, including:

  • Saving up. We recommend setting aside money every month for vacations. Sit down and create a budget to see how much you can afford to save, then set up automatic transfers each month straight into a high-yield savings account.
  • 0% APR credit card. Many credit cards have a special 0% APR offer after you open the card, often for a year or longer. If you open the card right before you travel and are diligent about repaying it all before the zero-interest period is up, you’re essentially getting a free loan.
  • Scaling back travel plans. If you just need a break, there are plenty of ways to travel on the cheap. You can limit the amount of debt you take on, or even pay for it all from your existing savings.
  • Travel rewards credit card. Many travel rewards credit cards offer sign-up bonuses large enough to pay for a flight within a few months of getting the card. You can also build up a pool of points from your everyday spending that you can put toward travel expenses.

Frequently Asked Questions (FAQs)

Are holiday loans a good idea?

Holiday loans could make sense for necessary and urgent travel but aren’t recommended for nonessential trips. Saving up for travel is a better strategy since you can return home without having to worry about holiday debt payments.

Who should consider a holiday loan?

Holiday and travel loans are best for people who need to travel for an important event or emergency, like a death in the family. Otherwise, taking out loans for high-cost, nonessential travel like a honeymoon or cruise is risky as you’ll accumulate unnecessary debt.

Is it hard to get a holiday loan?

Holiday loans aren’t harder to get than other types of personal loans. Having good credit gives you a better shot at approval and having a high score can help you qualify for low rates. If you don’t have strong credit, applying with a co-signer who has good credit is one way to get approved for better loan offers.

Should you borrow money to go on vacation?

We don’t recommend borrowing money for a vacation, even if you’re really chomping at the bit for a post-Covid vacation.

Are travel loans a thing?

Yes, you can take out a travel loan in the form of an unsecured personal loan. However, we don’t recommend them because the benefits typically don’t outweigh the downsides.

Next Up In Personal Loans

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

Lindsay VanSomeren is a personal finance writer based out of Kirkland, Washington. Her work has appeared on Business Insider, Credit Karma, LendingTree, and more.

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