If you have an upcoming vacation, a vacation loan can help cover a variety of travel expenses, like airfare, hotel stays, cruises, car rentals, and attractions. Here’s our take on the best vacation loans.
- Best for low rates: LightStream
- Best for flexible payments: Discover
- Best for same-day funding: SoFi
- Best for buy-now, pay-later: Affirm
- Best for bad credit: OneMain Financial
- What are vacation loans?
- When is a vacation loan a good idea?
- Alternatives to vacation loans
- FAQs about vacation personal loans
Best for low rates: LightStream
Why a LightStream personal loan stands out: LightStream offers vacation loans with very competitive rates. If you get a lower rate through another lender and meet certain conditions, LightStream’s “Rate Beat” program will beat it by 0.10%.
Pros
- Large loan amounts of up to $100,000
- Possible same-day funding
- Offer autopay rate discount
Cons
- Must have good credit
- No option to prequalify
- High minimum loan amount of $5,000
Read reviews of LightStream personal loans to learn more.
Best for flexible payments: Discover
Why a Discover personal loan stands out: You can take your time paying off a vacation loan from Discover. The lender lets you choose repayment terms from 36 months to 84 months, no matter how much you borrow.
Pros
- Competitive rates
- No fees
- Next-day funding available
Cons
- Doesn’t allow co-borrowers
- Low maximum loan amounts of $40,000
- Must earn at least $25,000 annually
Read reviews of Discover personal loans to learn more.
Best for same-day funding: SoFi
Why a SoFi personal loan stands out: If you need to pay for a trip right away, a SoFi vacation loan might make sense. You could receive your funds the same day you get approved.
Pros
- No late fees or prepayment penalties
- Member perks like free financial planning and travel discounts
- Autopay discount available
Cons
- Possible origination fees
- High minimum loan amount of $5,000
- Need good credit to qualify for the lowest rates
Read reviews of SoFi personal loans to learn more.
Best for buy-now, pay-later: Affirm
Why Affirm stands out: Affirm isn’t a personal loan, but it does let you spread out the cost of certain trip purchases, like flights or hotels, over time. You can make four total payments every two weeks without paying interest.
Pros
- Flexible repayment plans
- No fees
- Partners with companies like Expedia and Hotels.com for travel purchases
Cons
- Longer payment terms might require interest payments
- Potential down payment
- Terms vary by merchant and state
Read reviews of Affirm personal loans to learn more.
Best for bad credit: OneMain Financial
Why a OneMain Financial personal loan stands out: You may get approved for a vacation loan through OneMain Financial, even if you have bad credit. The lender will look beyond your credit score when reviewing your application.
Pros
- Allows co-applicants
- Local branches for in-person service
- Small loan amounts available
Cons
- High APRs
- Origination fees
- Can only borrow up to $30,000
Read reviews of OneMain Financial personal loans to learn more.
What are vacation loans?
Vacation loans are personal loans you can use to cover the cost of a vacation. Once you get approved for a vacation loan, you’ll receive a lump sum of money upfront and repay it through fixed monthly payments.
You could put the funds toward a number of expenses, such as flights, hotel stays, meals, cruises and attractions. Vacation loans vary by lender but typically range from $1,000 to $100,000 and don’t require collateral.
When is a vacation loan a good idea?
A vacation loan is worth exploring if you have an upcoming vacation and need some cash to cover some or all of it. It’s a particularly good option if you have to make an emergency trip to care for a loved one, for example. Just make sure you can comfortably afford the monthly payments and are able to repay it on time.
Alternatives to vacation loans
If you decide a vacation loan isn’t a good fit, here are some alternative options to consider.
- Credit cards: If you need a small amount of money to cover a vacation, a credit card could help bridge the gap. Ideally, you’d use a card with a 0% introductory APR so you won’t owe any interest.
- Home equity loan: A home equity loan might make sense if you’re a homeowner. It can allow you to tap into your home equity and receive a lump sum of money upfront to cover your vacation. But keep in mind that if you don’t repay your loan, you risk losing your home.
- Buy-now, pay-later apps: With a BNPL app, you could split the cost of airfare, cruises, hotel stays, or other travel expenses into smaller, manageable payments. You might even be able to avoid interest if you pay back your balance on time.
Our methodology: How we pick the best personal loans
Credit Karma’s editors evaluate the best personal loans by reviewing key features of dozens of popular lenders. Those features fall into three important categories:
- Affordability: We start by checking if a lender’s rates are competitive: are they higher than average or are they lower than many competitors? From there, we analyze if fees — particularly an origination fee — may make your loan more unaffordable. Last, we’ll check if the lender offers rate discounts for items such as automatic payments that may reduce your rate.
- Customer-friendly features: Taking out a personal loan is a big financial commitment, so we prioritize lenders that make things easier for you. For instance, do they offer a wide range of loan amounts for people with different borrowing needs? Do they offer at least several loan terms to give you more flexibility with your monthly payment? And, crucially, can they fund your loan quickly? A lender will also get bonus points for offering direct payments for debt consolidation or other customer-friendly features.
- Transparency: We believe personal loan terms should be easy to find and decipher. Prequalification, which lets you check what rate you may qualify for without a hard credit inquiry, is particularly important. We also check to see if a lender has been recently penalized by regulators.
Estimate personal loan costs
To better understand the total cost of any personal loans you’re considering, use an online calculator like Credit Karma’s simple loan calculator. A loan calculator can help you estimate your monthly payment and how much you’d pay in interest versus principal over the length of the loan.
FAQs about vacation personal loans
Vacation loans are worth it in some situations. If you need help paying for an unexpected trip to care for a loved one or a big-ticket trip, such as a honeymoon, for example, a vacation loan could come in handy, especially if you can secure a low interest rate and favorable terms.
The best way to finance a vacation depends on your unique situation, but vacation loans are often a good option. In most cases, you can take one out without collateral or the risk of losing a valuable asset, such as your home. Credit cards, home equity loans, and buy-now, pay-later apps could also help you pay for a trip.
Each lender has its own eligibility requirements for vacation loans, but some are lenient and approve borrowers with fair or even poor credit. Since most lenders let you prequalify for a vacation loan, you can get an idea of your options before you formally apply and impact your credit score.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.