How to Get a Vacation Loan


pier-440339_640Most people don’t think about taking loans out for their vacation and discovering exactly where is NYC, because they’re using loans for things like college educations, homes and cars. But it’s a perfectly legitimate way to go if you don’t have a lot of other major expenses and you know you’ll be able to pay it back. Though, really not many people fall into that category.

Vacations add up after a while, and it can be incredible just how much those tours, meals, late-night drinks, speeding tickets (although dismissible by taking a defensive driving course), will end up costing. So, if you happen to be dead set on going to one of the more expensive places in your budget, keep these tricks in mind.

The Debate

On the one hand, you’ve got a lot of responsibilities. You may have a car payment, car insurance, phone bills, and a mortgage. On the other hand, it’s freezing where you are and not freezing in places to the South of you. On the one hand, you may get sick later this year and lose your source of income. On the other hand, your city doesn’t have a roller coaster next to an ocean. Maybe you’re planning a wedding soon or want to have a child in the future. On the other hand, if you don’t get a helicopter ride over the Grand Canyon, is life really worth living? These are just a few of the major concerns you should have you on your mind before you go about getting your vacation loan.

Credit History

A loan is a loan, so you probably saw this coming. You can probably just file this under any type of personal loan, thought there are companies that specifically will make loans for travel. Your credit score will be just one factor they’ll look at before you’re granted the loan. They’ll also look at things like your collateral and general assets. There is one major warning about all this: taking out a vacation loan is going to increase the amount of debt you have, and it will likely end up costing more than you think if you can’t pay it off in a timely manner. So, that means that if you’re borrowing a loan of $5,000 at 12%, you’ll end up paying close to another $1,000 if you take the maximum amount of time to pay it off. That sounds like a raw deal to us, and perhaps not worth going to Spain for. You may even get a better deal through your credit card, depending on your carrier.

Can You Pay?

This is a pivotal question to ask before you sign on the dotted line. Because chances are, if you’re going for a vacation loan, you may not be the best at managing your finances. Which can likely make things pretty awkward when you think about the rest of the bills that will add up over time in addition to the one that made your skiing dreams come true. Maybe you don’t care that only 2% of those who take out personal loans say they do it to finance their vacation. You do your own thing, regardless of how society tells you to live your life. While we support that, there are a lot of reasons why Americans as a whole own an astonishing level of debt, and vacation loans certainly aren’t helping. In the end, you’ll likely get someone who can help you get a loan, even if you must borrow at ridiculously high rates. It’s not so much a question of how to but a question of should you.

Join our newsletter


Subscribe to get the latest "Engineer Your Finances" content via email.

Powered by ConvertKit
About the author

Join our newsletter

Subscribe to get the latest "Engineer Your Finances" content via email.

Powered by ConvertKit Top Finance Blogs


SSCP   CAS-002   9L0-066   350-050   642-999   220-801   74-678   642-732   400-051   ICGB   c2010-652   70-413   101-400   220-902   350-080   210-260   70-246   1Z0-144   3002   AWS-SYSOPS   70-347   PEGACPBA71V1   220-901   70-534   LX0-104   070-461   HP0-S42   1Z0-061   000-105   70-486   70-177   N10-006   500-260   640-692   70-980   CISM   VCP550   70-532   200-101   000-080   PR000041   2V0-621   70-411   352-001   70-480   70-461   ICBB   000-089   70-410   350-029   1Z0-060   2V0-620   210-065   70-463   70-483   CRISC   MB6-703   1z0-808   220-802   ITILFND   1Z0-804   LX0-103   MB2-704   210-060   101   200-310   640-911   200-120   EX300   300-209   1Z0-803   350-001   400-201   9L0-012   70-488   JN0-102   640-916   70-270   100-101   MB5-705   JK0-022   350-060   300-320   1z0-434   350-018   400-101   350-030   000-106   ADM-201   300-135   300-208   EX200   PMP   NSE4   1Z0-051   c2010-657   C_TFIN52_66   300-115   70-417   9A0-385   70-243   300-075   70-487   NS0-157   MB2-707   70-533   CAP   OG0-093   M70-101   300-070   102-400   JN0-360   SY0-401   000-017   300-206   CCA-500   70-412   2V0-621D   70-178   810-403   70-462   OG0-091   1V0-601   200-355   000-104   700-501   70-346   CISSP   300-101   1Y0-201   200-125  , 200-125  , 100-105  , 100-105  , 1Z0-803  , 400-051   EX300  , CISM   100-105  , 000-106   400-201   642-732   220-902   70-410  , MB6-703   810-403   70-243  , CAS-002  , AWS-SYSOPS   70-462   70-410   2V0-621   LX0-103   70-461  , 220-902   1Z0-144   70-178   70-270   350-080  , 1Y0-201   1z0-808  , NSE4   102-400  , ADM-201   SSCP  , 200-125  , 640-911   000-104   640-692   300-320   350-060   000-089  , 000-017   1z0-808   700-501   1Z0-051  , 70-177   M70-101   300-209   70-461   3002   N10-006   VCP550   70-487   300-320  , 3002   700-501   NS0-157  , 1V0-601   CAS-002