Finding a Travel Loan That Is Right For You

If you want to go on vacation but have a limited travel budget, you can apply for a travel loan. A travel loan is a type of personal loan used exclusively for covering the costs of travel. There are a few different categories of loans available. The first is foreign travel.

These loans allow you to borrow more to cover the costs of expensive flights. You can also use the loan to help with lodging costs. Domestic travel loans are meant for trips within the United States. You can use a domestic loan for both yourself and family members. Senior citizens are eligible for separate travel loans, which have lower interest rates than foreign or domestic loans.

Travel loans are unsecured, which means you do not have to put up any kind of collateral to cover the costs. Your interest rate and repayment plans are determined by your lender. Listed below are several providers for travel loans.

Best Egg

Best Egg is an online loan provider. The minimum loan you can borrow from Best Egg is $2,000, while the maximum is $35,000. They are one of the better lenders for applicants with a lower credit score. They recommend applicants have at least a score of 630, but they still work with applicants who have a score as low as 600. The average interest rate starts at 14 percent, but there are numerous discounts available based on your credit score. Having a score above 700 and a minimum income of $100,000 nets you the best interest rate, 5.99 percent.

Best Egg has limited options for payment plans. You may choose either three or five years. If you are borrowing a smaller amount, this may be frustrating, as the interest rates on longer loans are typically not worth it. Best Egg is also a fast loan provider, typically taking two to three days to deposit your funds.


Upgrade is one of the better lenders if you possess a bad credit score. Applicants are recommended to have at least a score of 580, but many applicants with lower scores were accepted for loans. Upgrade is stricter in other areas. Applicants must have at least an annual income of $35,000. One of the best benefits of Upgrade is their discount plan. If you sign up for autopay, which takes loan payments directly from your bank account, you are automatically eligible for a .5 percent discount on your interest.

Upgrade also offers a hardship program. If you experience a financial emergency, you can apply for assistance. This either results in a reduction on your next monthly payments or permanent alterations to the loan, based on how much you already paid back. Upgrade primarily deals in smaller travel loans, close to $10,000, but larger options are available.


Upstart is marketed towards younger applicants with minimal credit histories. As long as you have a minimum gross income of $12,000, you are eligible for a travel loan. In addition to catering to younger applicants, Upstart provides flexible payment plans. This allows you to change your payment date an unlimited number of times. You can change the date from your account on Upstart’s website. This is helpful if you have an unexpected expense and want to delay your monthly payment until your next pay check.

Lending Club

Lending Club is primarily known for debt consolidation services, but they also provide excellent travel loans. Both joint and co-signed loan options are available, which are helpful if you have a poor credit score. You can also use the Lending Club website to perform a soft credit check, letting you find out what loans are available without impacting your credit score. Lending Club will perform a hard credit pull once you officially apply for a loan.

Lending Club has stricter requirements than other lenders. It is difficult to get a loan if your credit score is under 700. If you are a Lending Club member, the requirements are relaxed, but you still need a credit score of at least 640.


Prosper is another travel loan provider with strict requirements. Applicants typically need a credit score of 700, but there are joint loan options. With these loans, the secondary applicant is accepted as long as their credit score is not under 600. Prosper has one of the widest ranges of loans, starting with a minimum of $2,000, but going all the way up to $40,000. Prosper has some of the harshest late fees, so it is best for applicants who are good at budgeting.

Purchasing Travel Insurance

Another option to consider when you are looking for travel loans is whether you need travel insurance. Travel insurance is not only for medical expenses. If you book an expensive flight or cruise trip, you can insure the costs. If there is an unexpected emergency that prevents you from going, your travel insurance guarantees reimbursement, even if the tickets are normally non-refundable. Travel insurance is an excellent way to ensure your travel loan funds are not lost due to unforeseen events.