Best Honeymoon Loans of April 2024

The average U.S. honeymoon costs $5,100 according to 2022 data from The Knot. If you've already spent the average amount on your wedding ($30,000, according to the same study), you may have little left over.

You could postpone your honeymoon to give yourself time to save. Or, you could plan a “mini-moon” close to home to cut costs. But after all that time (and effort) planning the wedding, you might need to get away. Consider a honeymoon loan to help pay for it.

Compare honeymoon loan rates of April 2024

Best honeymoon loans

The best loan to fund your honeymoon will be the one that provides the amount you need, with a monthly payment you can afford. It should have a competitive annual percentage rate (APR), based on your credit score, and a repayment term that makes sense for your long-term goals. To get your search started, we’ve rounded up lenders who cater to borrowers across the credit spectrum, and offer a range of loan amounts and repayment terms.

SoFi: Best overall

Upgrade: Best for fair credit

Discover: Best for no origination fees (and low rates)

Universal Credit: Best debt consolidation loans for bad credit

Best Egg: Best for high close rates if pre-approved

BHG Money: Best for large personal loans

Avant: Best for all credit types

Upstart: Best fast personal loans for all credit types

Methodology

Credible evaluated the best personal loan lenders for honeymoon loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Credible’s team of experts gathered information from each lender’s website, customer service department, in-house resources, and via email support. Each data point was verified to make sure it was accurate at the time of publication.

Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.

How to compare honeymoon loans

When looking for a honeymoon loan, give yourself time to compare multiple lenders. This process can help you find a loan that best suits your needs, and can potentially save you money. Some of the factors to compare between lenders include:

• APR: The annual percentage rate accounts for your interest rate and any upfront costs associated with borrowing. Lenders use your credit profile, income, and current debt to determine the rate you qualify for — or if you qualify at all. APRs on honeymoon loans can vary widely between lenders, but most personal loans range from around 6% to 36%.
• Fees: Check to see if there are any additional costs to consider, such as an origination fee or late fees. Note that origination fees are frequently deducted from the loan amount.
• Funding speed: How quickly do you need access to your loan? While some lenders might offer funding on the same day you’re approved, others may take a week or more.
• Loan term: While a longer loan term can result in lower monthly payments, you can also expect to pay more interest over time.
• Loan amount: Can the lender provide a big enough loan to cover your honeymoon costs? Many honeymoon loans range from $1,000 to $50,000, and with excellent credit, it may be possible to find a loan for $100,000 or more with some lenders.
• Restrictions: Ask if there are any restrictions associated with how you can use your honeymoon loan.
• Cosigner: If you don’t have good or excellent credit, a cosigner with good credit — like a supportive parent or good friend — may help to improve your chances of getting approved for a honeymoon loan or landing a lower rate. Check to see if the lender allows you to add a cosigner.

Check Out: How Long Does It Take To Get a Personal Loan?

Eligibility requirements for honeymoon loans

To get approved for a honeymoon loan, you’ll need to meet the lender's eligibility requirements. While there may be some variation, most lenders will want to see the following:

Credit score

Lenders use your credit score to help determine if they want to risk loaning you money. Credit scores are calculated using models like FICO and VantageScore, and typically range from 300 to 850, with a lower score indicating a higher-risk borrower. With a good or excellent credit score — a FICO score of 670 or above — you’re likely to qualify for more loans with a lower rate and better terms.

While it is still possible to qualify for a loan with a bad credit score, you can expect to pay a higher interest rate.

Learn More: Credit Score for a Personal Loan

Income

Lenders also want to confirm that you have a steady source of income to determine if you can afford to repay your honeymoon loan. Lenders differ regarding what they require as a minimum income. For instance, Discover requires a minimum individual or household income of $25,000, BHG Money requires a minimum of $100,000, while Upgrade doesn’t specify a minimum income requirement.

If you’re unemployed and need a loan or have a less reliable source of income, you might find it more challenging to qualify for a honeymoon loan. If approved, you’ll likely pay a higher APR.

Debt-to-income ratio

Your debt-to-income ratio (DTI) looks at how much of your income is going toward debt repayment. To calculate your DTI, take all of your monthly debt payments and divide the total by your gross (pretax) monthly income.

For example, if you pay a total of $2,000 per month in debt payments and your gross monthly income is $5,000, you have a DTI of 40%.

$2,000 / $5,000 = .40 = 40%

A high DTI — anything above 35% — can make it more difficult to qualify for a honeymoon loan, because lenders might worry you won’t be able to handle the additional debt. If you have a DTI of 35% or higher, you might consider paying down some of your debt before applying for a honeymoon loan.

Check Out: How To Pay Off Debt Fast

How to apply for a honeymoon loan

If you want the honeymoon loan application process to go as smoothly as possible, make sure you know what you want and are properly prepared.

1. Check your credit score: Before you start applying for a honeymoon loan, it helps to know what you’re working with. Reviewing your credit report will give you a good idea of what potential lenders will see. Knowing your credit score can also help you understand which loans you’re likely to qualify for. If you have a poor credit score, you might want to take steps to increase it to improve your loan application. You can request copies of your reports at AnnualCreditReport.com.
2. Determine the size of the loan you need: How much money do you plan to spend on your honeymoon? Will you fly to your destination or drive? Stay at an all-inclusive resort or a bed and breakfast? What will you do for entertainment? Before you go looking for a honeymoon loan, have a good idea of how much you need and know what you can realistically afford.
3. Prequalify with multiple lenders: Prequalifying for multiple honeymoon loans allows you to compare offers from various lenders without a credit check. By entering some personal and financial information, you can get an estimate of APRs, loan amounts, and terms from certain lenders before committing to the actual loan application process. It is not an offer of credit, though, and your final rate may differ. When you proceed to formally apply for a loan, the lender will conduct a hard credit inquiry that will temporarily lower your score by a few points.
4. Consider a cosigner: If you have a lower credit score, consider looking into lenders that allow cosigners to improve your chances of approval or qualifying for a loan or for a lower interest rate. A cosigner is someone who agrees to pay your debt if you miss payments. While they take on an equal amount of risk, they can’t access the money. The ideal cosigner has a good to excellent credit score, a low DTI, and a high income.
5. Select a loan: Based on your comparison of multiple lenders, select a loan that fits you and your budget. If you’re approved, review and sign the paperwork and begin repaying the loan according to its terms.

Related: Co-applicant vs. Cosigner

Honeymoon loan alternatives

For many, a personal loan is the best choice to finance a honeymoon. But here are a couple of other options that may be available to you:

• 0% APR credit card: Check if you qualify for a credit card with a 0% APR promotional period and a credit limit high enough to fund your honeymoon. The advantage here is that you can borrow money at no cost for the duration of the promotional period. The disadvantage is that if the balance isn’t paid by that time, you’ll be charged the card’s standard rate on the remainder. Make sure you can comfortably afford the monthly payment to pay off (or significantly pay down) the balance before the 0% APR expires. Many card issuers, like Capital One, let you see which cards you’re pre-approved for, without hurting your credit.
• Home equity loan or line of credit: If you own a home with more than 20% equity, you may qualify to borrow against that equity via a home equity loan or line of credit (HELOC). The amount will be limited by how much equity you have, and the loan could come with significant closing costs, and take a month or more to fund. However, rates can still be lower on home equity-based loans since the home is securing the loan — which also means the lender could foreclose if you default.

Check Out: HELOC vs. Personal Loan

Honeymoon loans FAQ

What is a honeymoon loan?

A honeymoon loan is a personal loan that provides financing for post-wedding-related costs. These can include airfare, accommodations, food, and entertainment. Honeymoon loans are frequently installment loans with a fixed interest rate that you repay back monthly over a period of years.

Should you take out a loan for your honeymoon?

Whether or not you should take out a honeymoon loan depends on your individual wants and needs. If you’re determined to go on a honeymoon, but don’t have money available to fund it, it’s possible to pay for it with a honeymoon loan. Before you take on a honeymoon loan, weigh the pros and cons, and compare to alternative funding sources like 0% APR credit cards and home equity loans.

Can you get a honeymoon loan with bad credit?

It’s possible to get a honeymoon loan with bad credit, but you’re likely going to pay a higher interest rate and fees than someone with a good or excellent credit score. Applying for a honeymoon loan with a cosigner may help to increase your chances of qualifying with bad credit. You can also consider taking some time to improve your credit score before applying for a honeymoon loan.

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• Best Vacation Loans
• Best Wedding Loans
• Best Personal Loan Rates
• Personal Loan Requirements
• Where Can I Get a Personal Loan?
• How Do Personal Loans Work?
• How To Get a Low-Interest Loan