Should You Get A Vacation Loan?

But is it a good idea to apply for a vacation loan to fund your fun and relaxation? We’ll help you figure that out while also detailing some of the best vacation loans on the market.

Due to the stress we’ve had to endure over the past couple of years, it’s no stretch to say that we could all use a vacation to unwind. Unfortunately, vacations are expensive, and not everyone has the cash saved up for even a quick trip. That’s where vacation loans come into play, as they can give you the necessary funding to take a trip, even if you have no savings on the side. But are they a smart move? That depends on your situation.

Reasons To Apply For Vacation Loans

The top reason to apply for a vacation loan is that it gives you the necessary funding to travel now. For some, this sole reason can overcome the cons of vacation loans, as a quick trip could be considered life-saving if you’ve been under lots of stress lately.

While your mileage may vary depending on the lender, vacation loans often result in quick approval. Some even offer same-day funding, so you can start booking your trip ASAP. If you were considering using a credit card to pay for your trip, a vacation loan could offer lower interest rates. And many vacation loans offer flexibility with the terms, so you can choose how long you’ll take to pay the money back.

Reasons To Avoid Vacation Loans

The fact that you can get quick cash to take a trip is convenient, but depending on your financial situation, it could mean trouble. Some say you shouldn’t take out a vacation loan as it will put you deeper into debt for something that you don’t need (unlike a rent payment or buying a car to get from point A to B). If you want to pay the vacation loan back quickly, you may face a prepayment penalty. And some lenders may charge origination fees, documentation charges, etc., which could add to the loan’s overall expense.

Vacation Loans To Fund Your Trip

Whether you choose to fund your trip using a vacation loan is up to you. If you take this route, here are some lenders that may fit your needs:

• LightStream – Get same-day funding ($5,000-$100,000) with loans for everything, including vacations. LightStream has rate-matching to compete with other lenders as well.
• OneMain Financial – Fixed interest rates and monthly payments, so you don’t encounter surprises. No prepayment penalties. Over 1,400 branches that allow you to apply in person.
• Affirm – A buy-now, pay-later service that partners with Priceline, Vrbo, Expedia, etc., to offer the top deals on travel to its customers. Zero hidden fees and autopay is available.
• Marcus – Personal loans that can be used for vacation that range between $3,500-$40,000. Loan terms between three to six years. No fees. Fixed rates for the loan’s life.