Maui sure looks good this time of year! What do you do when you have toiled away for 365 days and sincerely need some rest and relaxation, but you don’t quite have the funds for such a trip? Surprisingly, there are personal loans out there for that. Who knew? Personal loans for vacation. However, before you head to the lending office or start packing the sun block, there are a few pros and cons to consider.


  • Personal loans for vacation are usually easier to obtain than their counterparts, if you have decent credit. The application process is much simpler and you should know immediately if its time to book a flight.
  • Taking a small loan will be one way to fight overages on your trip. If you utilize only the cash you obtain from the loan and keep the credit cards strictly for emergencies, you will be much more efficient in sticking to a budget.
  • Budgeting for a vacation all year can be difficult, particularly if you simply put it all on the card. With a personal loan, you know exactly what you have to spend and what it is going to cost you over the next year with no nasty surprises.
  • A personal loan will not affect your credit use ratio like other loans or maxing out the plastic will.
  • No struggling all year to set aside money for your vacation only to find out you do not have near enough. You can plan your trip and then apply for a small loan to cover the cost.


  • Your loan will not be interest free.
  • Many credit cards will offer extended periods of interest free borrowing as long as you do not go over a specific percentage of your credit line and you pay the balance off before the period ends. You will not have this luxury with a personal loan.
  • Often, personal loans are much smaller than say a home equity line of credit. This could mean a trip to the east coast is fine but heading to Hawaii for a week is out of the question.
  • Interest rates tend to be more on personal loans, particularly unsecured loans.

Final Thoughts

Should you finance this year’s vacation with a personal loan? Honestly, it is not a bad idea but you should definitely weigh the pros and cons carefully. You may find it is in your family’s best interest to simply enjoy a stay-cation or a visit to the national park this year while you spend the next 12 months setting aside your vacation funds.

If you’re interested in a personal loan for vacation, contact us at one of our

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