LightStream: Best for Vacation loans with low rates
Est. APR
6.49-25.29%
Loan amount
$5K-$100K
Min. credit score
660
Qualifications:
Key Facts:LightStream’s low rates and zero fees make it one of the top lenders for borrowers with good or excellent credit.
Qualifications:- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: None.
- Late fee: None.
Discover® Personal Loans: Best for Vacation loans with low rates
Qualifications:
Key Facts:Discover’s online experience, strong customer support and borrower perks make it a top lender for good- and excellent-credit applicants.
Qualifications:- Minimum credit score: 660.
- Minimum annual household income: $25,000. Income can come from employment, retirement, alimony, child support, Social Security payments and disability benefits.
- Must provide a valid U.S. address and email address.
- Must be 18 years old with a valid Social Security number.
Available Term Lengths:3 to 7 yearsFees:- Origination fee: None.
- Late fee: $39.
Prosper: Best for Vacation loans with low rates
Est. APR
8.99-35.99%
Loan amount
$2K-$50K
Min. credit score
560
Qualifications:
Key Facts:Prosper's platform gives borrowers access to a wide range of loan amounts and terms. Funding can take up to a few days.
Qualifications:- Minimum credit score: 560; borrower average is 709.
- Minimum income: $15,000; borrower average is $137,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.05% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
Available Term Lengths:2 to 5 yearsFees:- Origination fee: 1% to 9.99%.
- Late fee: The greater of $15 or 5% of the unpaid amount.
- Insufficient funds fee: $15.
- Mailed-in payment fee: $5.
Upstart: Best for Vacation loans with low rates
Est. APR
7.80-35.99%
Loan amount
$1K-$50K
Min. credit score
None
Qualifications:
Key Facts:Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases.
Qualifications:- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
Available Term Lengths:3 to 7 yearsFees:- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
SoFi Personal Loan: Best for Vacation loans with no fees
Est. APR
8.99-29.99%
Loan amount
$5K-$100K
Min. credit score
None
Qualifications:
Key Facts:Qualified borrowers will find few lenders better than SoFi, thanks to zero fees and thoughtful perks like unemployment protection and free financial advising.
Qualifications:- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: 0% to 7%.
- Late fee: None.
LendingClub: Best for Small vacation loans
Est. APR
7.90-35.99%
Loan amount
$1K-$40K
Min. credit score
600
Qualifications:
Key Facts:LendingClub loans have limited term lengths, but you can add a co-borrower to help your chances of qualifying for a lower rate.
Qualifications:- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
Available Term Lengths:2 to 6 yearsFees:- Origination fee: 0%-8%
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
Upgrade: Best for Small vacation loans
Est. APR
7.99-35.99%
Loan amount
$1K-$50K
Min. credit score
580
Qualifications:
Key Facts:Upgrade personal loans come with multiple rate discounts and offer direct payment to creditors. This lender has a low minimum credit score requirement, making the perks stand out even more.
Qualifications:- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
Universal Credit: Best for Small vacation loans
Est. APR
11.69-35.99%
Loan amount
$1K-$50K
Min. credit score
580
Qualifications:
Key Facts:Universal Credit personal loans have a low minimum credit score requirement, credit-building features and perks for debt consolidation. The lender charges high rates but offers autopay and debt consolidation discounts.
Qualifications:- Minimum credit score: 580.
- Minimum number of accounts on credit history: 1 account.
- Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
- Minimum length of credit history: 2 years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
Available Term Lengths:3 to 5 yearsFees:- Origination fee: 5.25% to 9.99%.
- Late fee: Up to $10.
- Non-sufficient funds fee: $10.
LightStream: Best for Vacation loans with low rates
Est. APR
Loan amount
Min. credit score
Qualifications:
Key Facts:LightStream’s low rates and zero fees make it one of the top lenders for borrowers with good or excellent credit.
Qualifications:- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: None.
- Late fee: None.
Discover® Personal Loans: Best for Vacation loans with low rates
Qualifications:
Key Facts:Discover’s online experience, strong customer support and borrower perks make it a top lender for good- and excellent-credit applicants.
Qualifications:- Minimum credit score: 660.
- Minimum annual household income: $25,000. Income can come from employment, retirement, alimony, child support, Social Security payments and disability benefits.
- Must provide a valid U.S. address and email address.
- Must be 18 years old with a valid Social Security number.
Available Term Lengths:3 to 7 yearsFees:- Origination fee: None.
- Late fee: $39.
Prosper: Best for Vacation loans with low rates
Est. APR
Loan amount
Min. credit score
Qualifications:
Key Facts:Prosper's platform gives borrowers access to a wide range of loan amounts and terms. Funding can take up to a few days.
Qualifications:- Minimum credit score: 560; borrower average is 709.
- Minimum income: $15,000; borrower average is $137,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.05% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
Available Term Lengths:2 to 5 yearsFees:- Origination fee: 1% to 9.99%.
- Late fee: The greater of $15 or 5% of the unpaid amount.
- Insufficient funds fee: $15.
- Mailed-in payment fee: $5.
Upstart: Best for Vacation loans with low rates
Est. APR
Loan amount
Min. credit score
Qualifications:
Key Facts:Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases.
Qualifications:- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
Available Term Lengths:3 to 7 yearsFees:- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
SoFi Personal Loan: Best for Vacation loans with no fees
Est. APR
Loan amount
Min. credit score
Qualifications:
Key Facts:Qualified borrowers will find few lenders better than SoFi, thanks to zero fees and thoughtful perks like unemployment protection and free financial advising.
Qualifications:- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: 0% to 7%.
- Late fee: None.
LendingClub: Best for Small vacation loans
Est. APR
Loan amount
Min. credit score
Qualifications:
Key Facts:LendingClub loans have limited term lengths, but you can add a co-borrower to help your chances of qualifying for a lower rate.
Qualifications:- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
Available Term Lengths:2 to 6 yearsFees:- Origination fee: 0%-8%
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
Upgrade: Best for Small vacation loans
Est. APR
Loan amount
Min. credit score
Qualifications:
Key Facts:Upgrade personal loans come with multiple rate discounts and offer direct payment to creditors. This lender has a low minimum credit score requirement, making the perks stand out even more.
Qualifications:- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
Universal Credit: Best for Small vacation loans
Est. APR
Loan amount
Min. credit score
Qualifications:
Key Facts:Universal Credit personal loans have a low minimum credit score requirement, credit-building features and perks for debt consolidation. The lender charges high rates but offers autopay and debt consolidation discounts.
Qualifications:- Minimum credit score: 580.
- Minimum number of accounts on credit history: 1 account.
- Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
- Minimum length of credit history: 2 years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
Available Term Lengths:3 to 5 yearsFees:- Origination fee: 5.25% to 9.99%.
- Late fee: Up to $10.
- Non-sufficient funds fee: $10.
» MORE: Compare unsecured loans
What is a vacation loan?
A vacation loan is an unsecured personal loan you can use to pay for travel expenses, including flights, hotels, rental cars, meals or anything else trip-related.
These loans don’t require collateral, and you repay them in fixed monthly installments, meaning your monthly payment won’t change over the course of the loan. Online lenders, banks and credit unions all offer vacation loans.
Most financial experts advise against incurring debt for discretionary vacation spending. For urgent travel, and when a loan is your cheapest option, borrowing may make sense. But make sure the monthly payments fit into your budget, and commit to paying off the loan on time.
Pros and cons of vacation loans
Weigh the pros and cons of a vacation loan to see if it’s the right choice for financing your trip.
Pros of vacation loans
Low rates for some: For well-qualified borrowers — those with strong income and credit scores above 690 — personal loans can have lower annual percentage rates than credit cards.
Receive the money in a lump sum: You receive funds from a personal loan all at once, rather than over time as you spend money. Having a fixed amount can help you plan and stick to your vacation budget.
Predictable monthly payments: Personal loans have fixed monthly payments over a set term, which means you can plan for repayments in your budget. Knowing when you’ll pay off the debt also helps you stay focused on your payments.
Cons of vacation loans
Potentially risky debt: If you struggle to repay other debts, a vacation loan could add financial stress. Even one missed payment could cause a hit to your credit score, plus you’ll incur late fees while still accruing interest, making your trip more expensive than you intended.
Years of payments: Terms on personal loans range from two to seven years — long after you’ve returned home. Carefully consider how long it makes sense to be paying for your travel.
Vacation loan rates
Annual percentage rates on personal loans range from about 6% to 36%, and some lenders may use the reason you get a loan to decide your rate and loan amount.
The rate you ultimately get depends primarily on your credit score and the percent of your income that goes to other debts each month, also called your debt-to-income ratio. The higher your credit score and the lower your DTI, the more likely you are to get a low rate on a vacation loan. A lower rate means a less expensive loan.
For example, a two-year loan of $3,000 with an APR of 11% would cost about $140 in monthly payments and $3,356 overall. That same loan with a 25% APR would require monthly payments of $160 and cost $3,843.
Use our personal loan calculator to estimate your monthly payments based on your credit score.
How to get a vacation loan
If you’re interested in a vacation loan, you can get one in four simple steps:
Check your credit report to see whether you’re putting your best foot forward. Address any delinquent accounts or errors before you apply.
Compare lenders so you can see what each offers and decide which loan features are important to you (for example, fast funding, a mobile app to manage your loan or the ability to change your payment due date).
Pre-qualify with multiple lenders to see which can offer you the lowest rates and repayment terms that fit your budget. Pre-qualifying doesn’t affect your credit score.
Gather your documents — including proof of identity, W-2s or pay stubs, your Social Security number and bank account numbers — and submit your application.
» GET STARTED: Pre-qualify for free on NerdWallet to compare loan offers
Alternatives to vacation loans
Before you take a loan, consider these alternatives to finance your trip.
Savings: If you have time, start saving. Create a dedicated travel savings account and put away some money each month. Find out how much your trip will cost by comparing prices of flights, hotel rooms and car rentals on travel websites.
» MORE: How to travel on a budget
Travel credit cards: If you travel frequently and have good or excellent credit (690 or higher credit score), you may qualify for a travel credit card that offers a sign-up bonus and other perks that could help lower the cost of your trips in the long run.
0% credit card: If you have good credit, you may also qualify for a low-interest or 0% intro APR card that allows you to carry a balance interest-free, typically for 15 to 21 months. That means if you can pay off your trip in that time, you can skip the interest altogether.
“Buy now, pay later” loans: Some lenders, like Uplift and Affirm, partner with major airlines, hotel companies and travel websites to include BNPL financing for travelers when they book their tickets. This means you can make your purchase now, but pay for it in installments, similar to a personal loan. Borrowers with fair or bad credit (below 690 credit score) may have an easier time qualifying.
Last updated on May 18, 2023
Frequently asked questions
A vacation loan is an unsecured personal loan you use to pay for travel expenses, like flights, hotels or meals out.
You can finance a vacation with a personal loan or credit card, but it typically costs interest. The cheapest option is paying for a vacation with savings.
How we chose the best personal loans
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NerdWallet's Vacation Loans: Finance Your Travel in 2023
- LightStream: Best for Vacation loans with low rates
- Discover® Personal Loans: Best for Vacation loans with low rates
- Prosper: Best for Vacation loans with low rates
- Upstart: Best for Vacation loans with low rates
- SoFi Personal Loan: Best for Vacation loans with no fees
- LendingClub: Best for Small vacation loans
- Upgrade: Best for Small vacation loans
- Universal Credit: Best for Small vacation loans
