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Holiday loans

Find a holiday loan for your dream trip - see it all, get the t-shirt

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  • Compare loans from leading providers
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Can I get a loan to pay for my holiday?


Eyeing up those sandy beaches and blue skies? All that’s left is to decide how you’re going to fund your next adventure. You can get a personal loan to pay for your holiday – it could be a good option if you need to spread the cost of the trip and pay it back over a number of months or years.


But it can feel difficult knowing where to start when it comes to finding a loan. There is so much choice on the market and you don’t know if you’ll be approved. That’s where we can help. 


When you compare loans with MoneySuperMarket you’ll see your chances of being accepted before you apply, so you can find a deal to suit you and turn your jet-setting dreams into a reality.

How do holiday loans work?

Here’s what to expect when you take out a holiday loan:

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    Apply for a loan

    Apply for a loan that covers how much you need to borrow for your trip and how long you’ll need to pay it back (the term)

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    Receive the money

    If you’re accepted for a holiday loan, the money should be in your bank within a few days (depending on the provider)

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    Pay the loan back

    You’ll usually start to make monthly repayments straightaway to pay back your loan. Monthly repayments are fixed from the outset – based on the amount borrowed and your rate of interest

How much will a holiday loan cost?

How much your holiday loan will cost you will depend on how much money you’re looking to borrow, how long you’ll need to pay it off and the interest (APR) added. 

Our loan calculator can give you an idea of how much your holiday loan will cost. You can either enter how much you can afford to pay back each month to work out what size loan you can get, or if you have a specific loan amount in mind you can see what the monthly repayments would be at different loan interest rates.

By way of example this table shows how much a £4,200 loan would cost to pay back each month over a term of one year.


Loan amount* Monthly repayments x 12 Length of agreement Representative APR** Total amount payable
£4,200 £355.26 1 year 2.8% APR £4,263


* Average holiday loan taken out between September 2020 and September 2021 was £4,200. 

** For those with an excellent credit score

What are the pros and cons of holiday loans?

Can’t decide whether to wait and save up, take out a loan for your holiday or pay for it with a credit card? Here are some of the things to consider with holiday loans:

  • They’re convenient

    If you don’t have the savings or income to pay up front for your holiday a loan could help, particularly if you want to take advantage of a discount or offer which may not be available for long

  • They can come with higher costs

    While a loan could be convenient and quicker than saving up, taking out a holiday loan will increase the overall cost of your holiday due to the interest added

  • They help spread the cost

    Personal loan rates are fixed so you’ll know exactly how much you need to pay each month and for how long until you’ll be clear of the debt

  • They mean taking on debt

    Make sure you’ve thought carefully about taking on a loan and you’re confident you can pay it back

  • They can be flexible

    You may be able to repay the loan early – subject to any early repayment charges –so check the terms of the loan before you sign up

  • They may damage your credit score

    If you’ve struggled with debts in the past your credit score may not be in the best shape. Consider ways to improve your credit rating before you apply for a loan so you don't further harm your score

Can I get a holiday loan with bad credit?

Your personal loan options could be limited if you have a low credit rating. That said, it doesn’t have to mean an instant ‘no’ to finding a loan for your holiday plans. There are specialist loans for bad credit - designed for those with a low credit score, so it’s usually easier to get accepted. While they typically come with higher interest rates and lower borrowing limits, they may be better suited to your financial situation

Do keep in mind that if you’re in financial difficulty right now, taking out a loan may put you in a worse situation as you’ll be taking on more debt.

Looking for a way to monitor your credit score? Our credit monitor tool can help. You’ll get regular updates on any changes to your score, with handy tips on how to improve it so you can watch it grow.

MoneySupermarket is a credit broker not a lender. You must be 18 or over and a UK resident.

Representative 29.9% APR

Alternative ways to pay for a holiday

Not sure if a holiday loan is the best option for you? There are alternative ways to pay for your next adventure, including:

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    Using a credit card

    0% interest credit cards can be used as an interest-free loan to pay for your holiday. An added benefit is consumer protection on credit cards if the airline or holiday company goes bust. This isn’t the case if you pay in cash. To avoid high interest clear the debt in full within the 0% period or switch to a new 0% card

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    Use your savings

    Instead of taking out a loan, you could use your savings to pay for your getaway – not only will you avoid paying interest, it’s also a good feeling to meet a savings goal and pay for your trip outright. There also won’t be any impact on your credit rating if you don’t have to borrow

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    Contact your travel company

    Some travel companies offer finance arrangements to fund your holiday. You may be able to pay a deposit and spread the rest of the cost over an agreed time period. Just watch out for any additional fees attached to the finance plan. The interest rates charged could also be much higher than those on a personal loan

Compare holiday loans with MoneySuperMarket

We’ll help to find the right holiday loan for you, so you’re a step closer to those sunny skies...

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    It doesn’t take long

    Tell us a little about yourself, your finances and the loan you want

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    We’ll browse the market

    We’ll search through loans from a wide range of lenders on the market

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    Choose your loan

    You’ll be able to sort loans by the overall cost and the likelihood you’ll be accepted

You can take out a loan to cover the cost of your holiday, just like you would to cover home renovations or a wedding. If you’re looking to travel the world for an extended period of time, you may need to apply for the loan while you’re in the UK as you’ll need a permanent UK address when you apply. Lenders will ask for a proof of income, so make sure you can afford to take on a holiday loan.

Unlike a holiday loan where you’d take out a loan to fund your travels, a loan holiday or ‘payment holiday’ is a period of time where you won’t have to make any loan repayments. Usually a loan holiday will last for a month or two, and you’ll still be asked to pay interest on the missed repayments when you start paying off the again.

To apply for a holiday loan you’ll usually need the following:

  • Proof of income: To apply for a holiday loan, the lender will ask for proof that you can pay it back. Lenders might ask for evidence of your salary, such as on your pay slip or bank statement

  • Over 18: You’ll need to be over the age of 18 to apply for a holiday loan

  • Personal details: You’ll need to supply some personal details like your name and address 

  • Where you live: Your current address and address history covering the last three years

  • Your spending: Lenders may ask for details about your income and outgoings


An Annual Percentage Rate or APR is the interest rate you’ll pay on top of the money you’ve borrowed. It includes the interest rate you’ll pay, plus any other fees or charges, to give you a more accurate idea of what your loan will cost you. You’ll be told the APR of your holiday loan when you apply.


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