Vacation Loans – Everything You Need to Know

Vacation Loans – Everything You Need to Know
Amy Fontinelle
on March 22, 2020
Read in 1 min

Want to travel somewhere soon but don’t have the money?

Vacation loans can offer a way to travel now and pay later through a series of monthly payments.

What are vacation loans?

A vacation loan is just a marketing term for a personal loan, which can be used for virtually any purpose.

Personal loans may be unsecured. Unlike an auto loan or mortgage, there’s no collateral behind them.

That can make them similar to credit cards in terms of interest rates.

Credit card borrowing can be dangerous, however: cards don’t require you to pay off your debt by a certain date.

Interest charges can become exorbitant over time if you don’t make a repayment schedule for yourself and stick to it.

Personal loans come with a repayment plan. They must be paid off by a certain date, so they might cost you less in the long run because they impose discipline.

What are the requirements for vacation loans?

Simply put, decent credit and an income will help your chances of approval.

Numerous financial companies offer personal loans: banks, credit unions, and online lenders. Explore these different routes to make sure you find a lender that works for your situation.

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When are vacation loans a good idea?

In general, borrowing money to go on vacation comes with some risks from a financial standpoint.

But sometimes it makes sense in the right situation:

  • maybe a close friend or relative is getting married;
  • maybe your family is having a reunion;
  • maybe you just recovered from a serious illness and realized there’s a trip you really want to cross off your bucket list.

In circumstances like these, you might not mind paying some interest if that’s your best option for affording your trip.


Saving up for your vacation in advance and paying with money you already have is the easiest and least expensive way to fund a trip.

If you need travel financing, Lendgenius provides one simple form that upon completion, may connect you with a lender.


Disclaimer: This is not legal or financial advice. Please consult a legal or financial advisor for your specific situation.

Amy Fontinelle Finance Journalist

Amy Fontinelle is a writer, editor, and personal finance expert.

Her articles have appeared at Investopedia, Bankrate,, The Simple Dollar,, Yahoo,,, Bankaholic,, Saving Advice and other sites.

Amy’s clients include personal finance websites, financial institutions, public policy organizations, academic journals, and professional economists.