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Finance your vacation

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When you’re ready to head out on vacation, use these tips to help make your trip more affordable.

In today’s fast-paced world, vacations are practically a necessity, but that doesn’t make them affordable. When you’re ready to go somewhere new and experience everything the world has to offer, don’t let lack of money hold you back. There are numerous lenders across the US that offer travel loans designed to pay for vacations. But be careful — not every trip is worth financing, and you might be better off saving for your next big adventure.

Our top pick: LendingClub Personal Loan

  • Min. Credit Score Required: 640
  • Min. Loan Amount: $1,000
  • Max. Loan Amount: $40,000
  • APR: 6.95% to 35.89%
  • Requirements: US citizen or permanent resident, verifiable bank account, steady source of income, ages 18+.
  • No prepayment penalties
  • Flexible loan terms
  • Fast and easy application

Our top pick: LendingClub Personal Loan

A peer-to-peer lender offering fair rates based on your credit score.

  • Min. Credit Score Required: 640
  • Min. Loan Amount: $1,000
  • Max. Loan Amount: $40,000
  • APR: 6.95% to 35.89%
  • Requirements: US citizen or permanent resident, verifiable bank account, steady source of income, ages 18+.
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What is vacation financing?

Vacation financing is generally the combination of your savings, a loan and a credit card. If you don’t have the savings built up and don’t want to spend a lot of money using a credit card, then a personal loan will likely be a good option to get you booked for your next trip.

The type of vacation financing you’ll qualify for will depend on your credit, financial background and the amount you need to borrow.

How can I finance my vacation?

When you’re ready to take a vacation, there are a few different financing options you should consider.

What personal loan lenders can fund my next trip?

Updated June 25th, 2019
Name Product Filter Values Minimum Credit Score Max. Loan Amount APR
550
$100,000
3.99% to 35.99%
Quickly compare multiple online lenders with competitive rates depending on your credit.
680
$100,000
5.99% to 16.74%
No fees. Multiple member perks such as community events and career coaching.
640
$40,000
6.95% to 35.89%
A peer-to-peer lender offering fair rates based on your credit score.
Good to excellent credit
$100,000
5.34% to 35.99%
Get personalized rates in minutes and then choose a loan offer from several top online lenders.
620
$50,000
7.98 to 35.99%
This service looks beyond your credit score to get you a competitive-rate personal loan.
550
$100,000
3.84% to 35.99%
Get connected to competitive loan offers instantly from top online consumer lenders.
550
$10,000
34% to 155% (Varies by state)
Check eligibility in minutes and get a personalized quote without affecting your credit score.
640 FICO®
$35,000
5.99% to 29.99%
A prime lender with multiple repayment methods.

Compare up to 4 providers

7 tips for making your next vacation more affordable

  1. Use a layaway program. Layaway programs aren’t just for pre-Christmas sales. Many travel deals can be put on layaway, and unlike some other financing options, you won’t pay interest or fees.
  2. Crowdfund your trip. Set up a campaign on a crowdfunding site during the holiday season, around your birthday or any special event and ask for donations instead of gifts.
  3. Put money into a high-interest savings account. Savings accounts are a quick way to save up with minimal effort. If you deposit the equivalent of $2 a day, you’ll have $730 after a year — plus interest. It might not pay for a yearly vacation, but it can help cover costs and act as an emergency fund if you need to make an unexpected trip.
  4. Use an online piggy bank. Online piggy banks are similar to savings accounts, but they’re often less work. You set a goal and the amount you want to contribute to your account then forget about it.
  5. Have a budget. While you’re busy putting away money into your savings, take the time to create a travel budget. Money for food, tours and entrance fees should all be added on top of transportation costs like flights and car rentals.
  6. Get a credit card with travel rewards. There are a number of credit cards with travel rewards for you to choose from. Use it to pay for your everyday expenses, pay your bill early to avoid interest charges and build up a tidy amount of travel rewards.
  7. Apply for a study abroad grant. Enrolling in a program abroad is a great way to travel and really get to understand a foreign country. This is a great option for students looking to travel but unable to build savings or qualify for a loan or credit card.

Should I take out a loan to go on vacation?

Realistically? Probably not. Most financial advisors are against using a loan of any type — including credit cards — to pay for a vacation. Vacations are a luxury, and going into debt to pay for one may not be a wise decision. You’ll be stuck with monthly payments, and at the end of the day, you’ll pay hundreds or even thousands of dollars more in interest than you would have if you’d saved for your vacation instead.

However, if you must borrow, financing your vacation with a personal loan is likely wiser than using a credit card. Personal loans offer fixed payments, relatively low interest rates and set terms. When you borrow, you’ll know exactly how much that vacation will cost you for years to come.

Financing a once-in-a-lifetime vacation may not be the worst financial decision, but you should have a health amount of savings built up in addition to your loan before setting off for your destination.

4 ways to pay for a cruise

As cruises continue to increase in popularity, more people are looking to break the cost down. You have options when it comes to lowering the payments on your cruise to make it an affordable vacation.

  • Cruise layaway plans. Many cruise companies, like Carnival and Princess Cruises, offer layaway plans that allow you to put down a deposit months in advance then pay in increments.
  • Credit cards. Possibly the easiest way to pay for a large purchase, a credit card with a 0% introductory interest rate can get that cruise booked and paid for before you need to pay interest.
  • Book in advance. Cruise companies that don’t offer layaway programs will still allow you to book in advance. This will save you money, and you’ll have more time to pay for your cruise.
  • Go through a travel agency. Some travel agencies will offer a cruise-now-pay-later program that allow you to finance your vacation before you take it and pay for it once you get home.

Watch out for these mistakes when financing a vacation

Because financing your vacation can be expensive, be on the lookout for red flags when you’re searching for a loan.

  • Unaffordable monthly payments.If you think you pay have trouble paying your loan, don’t take one out. Missed payments can have an adverse affect on your credit score, and that can make it much harder to borrow in the future.
  • Skimming your loan contract. A loan isn’t the right place to skim terms and conditions. Your loan contract will tell you exactly what you’ll be spending and what happens if you default — important information when you’re borrowing a large chunk of change.
  • Overspending on your credit card. Credit card debt comes with a high interest rate and rigid fees. If you borrow too much, you could damage your credit utilization ratio and pay enough money for another vacation — for the credit card company.

Bottom line

Finding the right vacation financing could be an important step in planning your next big trip. There are multiple ways to make a vacation more affordable, but stay thrifty. Borrowing too much could make it more difficult to travel in the future. Always compare your loan rates and have a healthy amount of money saved to finance your vacation interest-free.

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US Personal Loans Offers

Important Information*
Logo for Credible Personal Loans
Credible Personal Loans

Get personalized rates in minutes and then choose a loan offer from several top online lenders.

Logo for Even Financial Personal Loans
Even Financial Personal Loans

Get connected to competitive loan offers instantly from top online consumer lenders.

Logo for LendingClub Personal Loan
LendingClub Personal Loan

A peer-to-peer lender offering fair rates based on your credit score.

Logo for SoFi Personal Loan Fixed Rate (with Autopay)
SoFi Personal Loan Fixed Rate (with Autopay)

No fees. Multiple member perks such as community events and career coaching.

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