5 Best Vacation Loans to Finance Your Next Trip in 2024

Vacation loans are
personal loans that fund travel expenses, providing a convenient solution when you’re short on cash or need to make last-minute travel bookings. They enable you to pay for your trip upfront and spread the cost over time, making budgeting easier. However, it’s essential to consider various personal loan rates and terms to ensure the product you choose aligns with your financial situation.

What Are Vacation Loans?

Shopping cart full of cash sits over a yellow background and palm tree sticker | Best Vacation Loans
Vacation loans are a type of personal loan designed specifically for funding travel expenses. They offer an alternative way to pay for a vacation, allowing you to borrow a lump sum to cover costs like flights, hotels, and activities. This financing option spreads the cost of your trip over a set period, making it more manageable to pay off in installments. While vacation loans can make travel more accessible, especially for last-minute or expensive trips, it’s essential to consider their
annual percentage rates (APRs) and repayment terms to ensure they align with your financial health and don’t lead to long-term debt.

5 Best Vacation Loans for 2024 Travelers

Person planning a vacation on a desk with map, savings jar and calculator | Best Vacation Loans

1. Wise Loan

Lender Details

Wise Loan is an online lender known for offering installment loans, including vacation loans. We’ve been in business for several years, providing an installment loan that can be used for any purpose mainly focused on personal loans. These loans are designed to help with various needs, such as unexpected expenses, emergencies, or specific purchases like vacations. We offer the best loan for traveling, catering to individuals looking to fund their travel when more than savings might be needed and offering a structured repayment plan over a set term.

Loan Specifications

Loan Amounts: $200 to $3,500 (depending on your state)

APR: 299.96% to 799.00% (depending on where you live and your credit rating)

Minimum Credit Score: N/A

Pros and Cons

  • Same or next-day funding
  • Flexible qualification requirements
  • Only available in Delaware, Idaho, Louisiana, Mississippi (returning customers only), Missouri, South Carolina, Texas, Utah, and Wisconsin 
  • Small loan amounts

2. Discover

Lender Details

Discover Personal Loans is a lending service provided by Discover Financial Services, a well-established financial institution in business since 1985. The company is known primarily for its credit card services, but it also offers a range of personal loans. These personal loans are typically unsecured and can be used for a variety of purposes, including travel loans, debt consolidation, home improvements, and major purchases.

Loan Specifications

Loan Amounts $2,500 to $40,000
APR 7.99% to 24.99%
Minimum Credit Score 660

Pros and Cons

  • No origination fee
  • Option to pre-qualify with a soft credit check
  • Fast funding
  • Mobile app to manage loan
  • May charge a late payment fee
  • No co-sign or joint loan option
  • No loan rate discount

3. SoFi

SoFi, short for Social Finance, Inc., is a finance company established in 2011 that offers a range of lending and wealth management services. Known for its student loan refinancing products, SoFi also provides personal loans, home loans, and investment options. It distinguishes itself with benefits like career coaching and financial advising for its members, aiming to offer a comprehensive financial wellness experience.

Loan Specifications

Loan Amounts $5,000 to $100,000
APR 8.99% to 25.81%
Minimum Credit Score 680

Pros and Cons

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

4. LightStream

LightStream, a division of Truist Bank (formed by the merger of BB&T and SunTrust Banks), specializes in providing online consumer loans. Established in 2013, LightStream offers a wide array of loan products, including auto loans, home improvement loans, and personal loans, known for their competitive rates and flexible terms. They are particularly noted for their loan experience guarantee, catering to customers with good to excellent credit profiles.

Loan Specifications

Loan Amounts $5,000 to $100,000
APR 9.49% to 25.99%
Minimum Credit Score 660

Pros and Cons

  • No fees
  • Loan rate discount for autopay
  • Extended repayment terms on home improvement loans
  • Rate Beat program and Experience Guarantee
  • There is no option to pre-qualify with a soft credit check on its website
  • No direct payment to creditors with debt consolidation loans
  • High minimum loan amount

5. Upgrade

Upgrade, founded in 2017, is a fintech company that offers a variety of credit and banking services, including personal loans, credit lines, and credit health tools. Their loans are known for their flexibility and accessibility, often catering to consumers with fair to good credit scores. In addition to lending services, Upgrade provides features like credit monitoring and educational resources, aiming to support the overall financial health of its customers.

Loan Specifications

Loan Amounts $1,000 to $50,000
APR 8.49% to 35.99%
Minimum Credit Score 580

Pros and Cons

  • Low minimum credit score requirement
  • Borrowers can use loans to cover business expenses
  • Offers direct lender payoff for debt consolidation loans
  • Origination fee
  • There is no option to choose your monthly payment date
  • High APR range

Alternatives to Loans for Vacations

Person holding empty wallet upside down next to carry on suitcase | Best Vacation Loans

Vacation loans offer a practical financial solution for those looking to fund their dream getaway. While only suitable for some, they can be an invaluable option for many, providing the necessary funds to cover travel expenses without depleting savings. Ideal for individuals with stable financial plans, these loans allow for the enjoyment of a well-deserved break with structured repayment terms that fit various budgets and economic scenarios. Alternatives, some of which are higher in risk, include:

  • Personal Savings: Using personal savings for vacation expenses is a financially prudent option, as it involves utilizing funds you’ve already accumulated, thereby avoiding debt and interest charges.
  • Travel Credit Cards: These are specialized credit cards offering rewards and benefits tailored to travel, such as airline miles, hotel points, and travel insurance, making them a cost-effective way to fund trips.
  • Buy Now, Pay Later Services: These services allow you to book and enjoy your vacation immediately while spreading the cost over a series of payments, often with little to no interest, providing a flexible short-term financing option.
  • Utilize Credit Card Rewards: Leveraging accumulated rewards from regular credit card usage, such as cashback, points, or miles, can significantly reduce travel costs and offer additional perks like upgrades and exclusive access.

Why Trust Wise Loan as Your Vacation Loan Lender?

Parents smile while looking at vacation booking confirmation with small daughter | Best Vacation Loans

Wise Loan stands out as a trusted lender for vacation loans, offering a unique blend of advantages that cater to the needs of diverse borrowers. One of our most notable features is the straightforward and user-friendly loan application process, designed to be quick and hassle-free, allowing for instant funding. Wise Loan is also renowned for its transparency in terms and conditions, ensuring borrowers are fully informed about their loan’s aspects, including interest rates and repayment schedules, without hidden fees or surprises. The qualification requirements are reasonable and tailored to accommodate a broader range of credit profiles, making it more accessible for individuals who might not qualify with traditional lenders. Additionally, Wise Loan offers flexible repayment options, which can be especially beneficial for those planning a vacation budget. These factors, combined with our commitment to customer service, make Wise Loan an attractive option for those seeking a vacation loan, providing a balance of reliability, accessibility, and clarity in their financial solutions.

Frequently Asked Questions

How Can You Get Money for a Vacation?

To secure funding for a vacation, you can start by saving a portion of your income regularly into a dedicated travel fund, ensuring you have a budget set aside for your trip. Applying for a vacation loan from a financial institution such as a bank or an online lender (like Wise Loan) can provide a lump sum with structured monthly payment terms. Utilizing travel credit cards is another option, where you can earn miles or points for travel-related expenses, often with added benefits like travel insurance. Exploring Buy Now, Pay Later services can allow you to book your vacation immediately and spread the cost over time with minimal or no interest. Lastly, redeeming accumulated credit card rewards, such as cash back or travel points, can significantly offset vacation costs, making your dream trip more financially manageable.

Are Vacation Loans Worth It?

Loans for vacation planning can be worth it for those who prioritize immediate travel experiences without having sufficient savings, offering a way to finance a trip now and pay over time. They are particularly beneficial when special deals or time-sensitive opportunities arise, allowing travelers to take advantage of offers they would otherwise miss. However, it’s essential to consider the interest and potential fees associated with these loans, as they can add to the overall cost of the vacation. For individuals with a stable financial plan and the ability to repay the loan without strain, vacation loans can be a practical solution. Ultimately, the value of a loan for vacation depends on personal financial circumstances, the urgency of travel, and the borrower’s willingness to accept and manage the associated debt.

Can You Finance a Vacation?

Yes, you can finance a vacation through various methods, each tailored to different financial needs and circumstances. Personal loans, specifically designed for travel purposes, offer a straightforward way to borrow a lump sum with a fixed repayment plan. Credit cards, especially those with travel rewards, can be used to cover expenses, potentially earning points or miles for future travel benefits. Buy Now, Pay Later services are becoming increasingly popular, allowing travelers to book their vacation immediately and repay the cost in installments, often interest-free. Additionally, for those with existing credit card rewards, utilizing these points or cash back can significantly reduce the upfront cost of a vacation, effectively financing it through past spending.

How Far in Advance Should I Apply for a Vacation Loan?

It’s advisable to apply for a vacation loan well in advance of your planned travel dates, ideally several weeks to a few months ahead. This lead time allows for any potential delays in the loan approval and funding process, ensuring you have the funds available when needed for bookings. Early application also provides ample time to compare different loan offers, find the lowest rates, and research terms, enabling you to secure the most favorable deal. Additionally, having the loan secured in advance allows for better budgeting and planning of your vacation expenses. However, it’s essential to consider the timing carefully, as taking a loan too far in advance might lead to unnecessary interest accrual if the funds are not immediately utilized.


Are you looking for the best vacation loan for traveling in 2024? Discover how Wise Loan can help travelers in need of some extra funding. Apply for a loan today!

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