Vacation Loans: All the Fun, None of the Credit Card Debt
4/12/2024
Are you tired of the stress and worry of putting your vacations on a credit card? It can be so stressful to come back from a trip, find yourself buried in debt, and wonder how you will dig yourself out. There’s a better solution: a vacation loan from Arkansas Federal Credit Union.
Now, I know what you might be thinking. “A loan for a vacation? That sounds crazy!” But hear us out. Vacation loans are actually meant for travel expenses and often come with lower interest rates than credit cards. Plus, with a set loan amount and repayment schedule, you can budget more effectively for your trip and avoid overspending.
Interested? Keep reading to learn more about the benefits of a vacation loan for your travel plans, including the ability to travel now and pay later while staying on budget.
What is a Vacation Loan?
A vacation loan is a personal loan specifically meant to cover vacation-related expenses such as airfare, hotel rooms, rental cars, tours, food, and other vacation costs. And the best part? You can use it to fund your dream vacation to any place you desire!
The loan amount varies based on your creditworthiness and other factors, but it typically ranges from a few thousand dollars to about $10,000.2 So, if you’re planning a vacation but need some extra cash, a vacation loan could be a great option.
10 Benefits of a Vacation Loan
Using a vacation loan instead of a credit card or savings has many benefits. Here are 10 reasons why.
- Travel Now, Pay Later. Enjoy your vacation fully now and pay for it later without draining your savings or racking up high credit card debt. This way, you seize the moment and start making memories now without the added financial stress.
- One Loan, Endless Destinations. With one easy loan, you’ll have the world at your fingertips, whether it’s a family vacation at the beach, a European excursion or a magic trip to Disney. So, go ahead and plan your itinerary, book your flights, secure accommodations, and more—all without worrying about high credit card debt.
- Fast Approval, Faster Cash. Once you apply online and get approved, funds are deposited into your Arkansas Federal Account as soon as the same day!4 That’s right – no waiting around for checks to clear or funds to transfer.
- Fixed Rate, Fixed Payments. Know exactly what to expect every step of the way. Enjoy one low monthly payment—no surprises, no sudden spikes in interest rates or payments. So, you can savor every moment, without worrying about your budget.
- $0 Application Fee. Our vacation loans have absolutely zero application fees! That’s right, there are no pesky application or origination fees to worry about. Just straightforward borrowing – pay back your loan with interest and let your adventure begin!
- No Collateral. There’s no collateral, such as your home, car, or other assets, required with our hassle-free vacation loan.
- Low Rates. The interest rate tied to a vacation loan is typically lower than most credit cards, so you can keep more money in your pocket.
- Set Payoff Date. With a vacation loan, you’ll have a specific date for when it will be paid off. That way, there’s no confusion, and you know exactly when you’ll be debt-free. Unlike credit cards, where you could be stuck making minimum payments forever, and the balance never seems to go down, a vacation loan has a specific date for when it will be paid off.
- Credit Builder. A vacation loan is a great way to build credit. Consistently making on-time payments can build your credit history and score in the long run.
- Peace of Mind. Knowing that you have the funds to cover your travel expenses can be such a relief, so you can fully enjoy your vacation without worrying about how you will pay for it. So, you can relax and focus on creating unforgettable memories. After all, that’s what vacations are for!
Compare & Save
| Balance | Interest Rate | Monthly Payment | 3-Year Interest Paid | Paid off in 3 years? | |
|---|---|---|---|---|---|
| High-Interest Credit Card | $10,000 | 22.5% APR3 | $400 (min payment)5 | $4,889 | No |
| Fixed-Rate Vacation Loan | $10,000 | as low as 8.89% APR The APR (Annual Percentage Rate) is effective as of 07/01/2024, ranging from 8.89% to 18.00% APR, with terms between 24 and 84 months. The APR is determined by various factors within Arkansas Federal’s custom scoring model, including, but not limited to, credit score, credit history, income, and debt-to-income. You must have a minimum household annual income of $25,000, be over 18 years of age, and have a valid U.S. Social Security Number to be considered for an Arkansas Federal personal loan. The maximum loan amount for an Arkansas Federal personal loan is $25,000. Loan approval is subject to confirmation that your income, debt-to-income ratio, credit history, and application information meet all requirements. For debt consolidation, even with a lower interest rate or monthly payment, paying debt over a longer period may result in paying more interest. An Arkansas Federal personal loan is intended for personal use. It cannot be used to pay for post-secondary education, a secured loan, or directly pay off an Arkansas Federal credit card. If application verification is completed and final approval occurs before 3:00 PM (CT) on the days the credit union offices are open, funds may be deposited the same business day via direct deposit to your Arkansas Federal account. Offer and rate are subject to change without notice. Membership with Arkansas Federal is required. | $314 (fixed payment) | $1,513 | Yes |
| Estimated Savings with Arkansas Federal | $3,376 | ||||
Apply for a Vacation Loan Today
If you want to finance your dream vacation without worrying about expenses, applying for a vacation loan is a great option. With fixed payments and low-interest rates, vacation loans are ideal for covering expenses.
Applying for a vacation loan is quick and easy. Once approved, you can have your money in hours. Apply online in minutes.
