Best Vacation Loans Online
We all need an escape from the doldrums of day-to-day life every once in a while, but we might not necessarily have the cash-on-hand to treat ourselves to the vacations we deserve. Or even if we do have the means to go an extravagant adventure around the world, there are situations where it can make more sense to temporarily borrow funds from another source. That’s where vacation loans shine.
Vacation loans are simply personal loan intended for travel purposes. Whether you want to go on an intercontinental trip to witness a one-time event like an eclipse, or if you simply want to get away for a leisurely week at the beach, vacation loans make it possible to see the world — without draining your bank account.
If you’re interested in applying for a personal loan for a vacation, here are the pros and cons of these financial arrangements along with a few of your best options when it comes taking out a travel loan.
Pros and Cons of Vacation Loans
Plenty of people will tell you that you’ll never regret spending money on seeing someplace new, but that doesn’t mean you shouldn’t first consider the benefits and drawbacks of taking out a travel loan. Here’s a quick look at the pros and cons.
- It’s cheaper than paying with plastic. If you’ve got good credit, the interest rate that accompanies your loan will likely be significantly less than the APR on a credit card.
- Life experiences mean more than money. With travel loans, you can go places you might never see otherwise, opening your eyes to new people, places, and cultures.
- You’ve got time to repay. If you’re hesitant to drain for your bank account to fund a dream vacation, travel loans let you keep your money and make payments over time.
- Can improve your credit. As long as you make your payments on time — or even ahead of schedule — your credit score will rise and your reputation as a borrower will improve.
- You’re paying interest. No one likes paying interest — no one — and if you take out a loan with the wrong institution, you could end up paying a lot more of it than you should.
- No one wants debt. Knowing that you have a debt hanging over your head isn’t very fun, and you likely won’t love looking at the balance you owe despite how much fun you had.
- There’s a substantial risk. If you miss a payment, you’ll pay for it — usually in the form of a negative remark that can stay on your credit report for up to seven years.
- You could wind up with a lousy lender. There are a growing number of lenders operating in this field, and it can be difficult to distinguish the good ones from the bad.
Lenders that Offer Travel Loans and Vacation Loans
If you’re shopping around for a travel loan to finance your next epic adventure, here’s a look at four leading lenders and what they each have to offer.
|Earnest||Starting at 6.99%||$5,000-$75,000|
Click to compare estimated rates on PrimeRates.
Marcus — Marcus offers vacation loans from $3,500 to $40,000 with terms ranging from three to six years. Most loans are funded within five days, and all loans include fixed rates. And with Marcus, there are never any fees of any kind.
Best Egg — Best Egg provides vacation loans from $2,000 to $35,000 with annual percentage rates ranging from 5.99% to 29.99%. Many of Best Egg’s approved borrowers also qualify for terms that help them pay down their debt more quickly through more manageable payments.
OneMain Financial — OneMain Financial issues travel loans from $1,500 to $30,000, but specific terms vary by state. Having served more than 10 million customers, OneMain is known for their exceptional customer support.
Earnest — Earnest offers low-cost, zero-fee travel loans in amounts from $5,000 to $75,000 with fixed rates starting at 6.99%. This lender also offers a greater degree of flexibility with regard to repayment. and they refrain from charging any kind of fees.
How to Get a Travel Loan You Can Trust
The best way to make sure you choose a trustworthy lender is to read the fine print on every page of their website and evaluate the merit of every review you can find about the financial institution in question. This is especially true for people looking for vacation loans with bad credit. The worse an applicant’s credit is, the fewer choices they have. And fewer choices can make it easy for unscrupulous lenders to take advantage of borrowers who don’t know better.
Travel Loan vs Line of Credit
Are you wondering about the difference between a travel loan and a personal line of credit? While they are similar in several ways, there’s is one major factor that distinguishes these financial options from each other. With a travel loan, you get the entirety of the loan amount right away, and from those funds, you pay for your travel expenses up front. By using a line of credit, however, you’re essentially charging your expenses to an account that you’ll repay later. Lines of credit might be a better fit for borrowers who are unsure of how much money they’ll be spending, because, in this way, they won’t over borrow and pay interest on funds they don’t end up using.
How Do You Use a Travel Loan?
How you choose to use a travel loan is entirely up to you. Take a cruise, go on a safari, learn how to scuba dive off the coast of a tropical island. With a vacation loan, there are virtually no restrictions as to where you can go and what you can do. Specific lenders, however, might have certain limitations borrowers must abide by.
If it’s time to get away from it all, a vacation loan can be just what the doctor ordered. So if you ready to research travel loans for bad credit or good credit, one of our featured lenders is likely to be a perfect fit for you.