Travel loans, like all types of loans, could be troublesome. Should travelers always go for a bank-sponsored tour vacation because they believe they deserve it? 

A travel or holiday loan is in the same category as mortgage and personal loans. The benefits and conditions are the only ones subject to change. Any kind of travel loan -- regardless of amount -- will have travelers commit years to repay.

Travel loans are similar to conventional loans by beginning with a loan application and credit check. Travelers with bad credit -- resulting from poor management of existing financing -- are unlikely to be approved. Those who do may have a higher APR rating especially for huge-budget luxury trips -- something that travelers need to pay close attention.

According to, travelers could play less interest if they pay higher amounts with less time. The money tips website averages paying time between 1-5 years. However, a traveler's credit score will determine the amount they could borrow from banks. If one has junk or very low credit rating, they may receive approval only for amounts available in their respective tier -- often with higher interest rates.

Travelers who could finance a travel vacation are ones with less financial commitments, such as travelers who had finished paying for a house, a new car or their children's education should they be parents. This also makes them low-risk clients likely to receive approval from their banks.

According to The Flying Nest, travelers who wish to take on a vacation entirely on debt should "rethink" the entire trip because it can potentially place them "in a worse situation than you are currently in." The travel tips website said paying back a $5000 car loan takes one three years -- and these amounts are regular savings amounts for individuals traveling to Europe.