Vacation on the Mind, Sans Money in the Pocket?

Personal loan for vacation

As much as it’s exciting to plan your dream vacation if you don’t have enough money to pay for it, the fun is completely lost. When you’ve toiled the whole year, the least you deserve is a relaxing retreat. What can do without the necessary funds? Your first thought would be to max out on your credit cards. But you’d do good to refrain from doing that. Always remember, credit cards are synonymous with high-interest rates. They come with no proper repayment schedule, and if not kept in check, can quickly lead you astray.

So how do you pay for that much-needed getaway? Personal loans may do the trick. Taking personal loans for a vacation is becoming an increasingly popular trend. But it’s not an option free of some pitfalls either. So, here’s why you should or should not take a personal loan for a vacation.


  1. Unsecured personal loans are likely to have much lower interest rates compared to those on your credit cards. These loans are easier to obtain than most others, provided you have a decent credit score. The application process is much simpler and the turnaround is much quicker.
  2. If you put the cash from the personal loan to use during your vacation, and strictly keep from spending on your credit cards, you have a better chance of sticking to your budget, making it easier to control your expenses.
  3. With a personal loan, you’d neither have to save up a whole year for your dream vacation nor do you have to tighten your purse/wallet strings once you’re back, to pay off for what you spent on your cards. A personal loan comes with a planned repayment schedule that gives you a good grip over your finances. So, repayment is a lot simpler.
  4. A personal loan doesn’t impact your credit use ratio, unlike some other loans or credit card debts. On the contrary, paying off your personal loan on time will only improve your credit score.


  1. No loan is interest-free. Even your personal loan will carry interest.
  2. Personal loans are not very big. This means that if you have a very expensive vacation in mind, a personal loan may not be enough to pay for it.
  3. A personal loan will not allow extended interest-free borrowing periods as many credit cards would. But this may not exactly be an advantage since it will only make your debt grow.

The amount you can avail as personal loan, and the interest you will be charged on it, will all depend on your credit history and financial health. Nonetheless, getting a personal loan for a much-needed vacation is certainly not a bad idea. But make sure you carefully weigh your options before you pack your bags and head out.