People still want to be part of the festive tradition of gift-giving, but how can they easily do that without spending any money?
Using Christmas loans may be the answer to these issues. You can apply for money that you’ll pay back following the holiday season to make sure you can buy the gifts you want.
The holiday season is the time of year that many realise they want to spend more than they have, so they turn to credit cards or loans as the answer.
A great thing about this type of loan is that it doesn’t necessarily have to be used for traditional Christmas gifts.
It can also be used for a vacation as a gift, student tuition as a gift, or even wedding gifts.
It’s becoming more common to use a Christmas loan versus other financing options during the holidays. It can lead to less stress and financial woe while in the season of holiday cheer.
Planning ahead of time and realising that your budget isn’t going to stretch far enough is important. You want to get your holiday loan in a timely manner so that you can use it for Christmas.
What Is a Holiday or Christmas Loan?
Both of those types of loans have high-interest rates, but unsecured holiday loans are not secured by collateral in the same way. As a result, the lender doesn’t have recourse if you default. There is nothing they can take from you if you can’t pay as they can with payday loans or cash advance loans.
Of course, a cash advance loan is not necessarily a bad idea if you’re in a really tight spot. Although different than a holiday loan, they can be helpful for certain situations.
Another difference between payday loans or cash advance loans is that a Christmas or holiday loan might have a higher rate of interest than a loan you got based on one of your assets, like a house or car.
Personal Loans for the Holidays: Do or Don’t
If you find you are in need of some help, you need to figure out what your next steps will be.
Holiday loans are not for everyone, especially if you don’t think you’ll be able to meet the interest rate or pay off what you borrowed in a timely manner.
Even though the rate for interest on a Christmas loan is higher than loans that have collateral-backing, the rate is not as high as the APR for credit cards. This is important to consider if you feel like using your credit cards may be another option for holiday gifts.
After you get your financial plan in order, you can start to think about what you’re going to buy, who’s getting what, and what paydayloanstennessee.com/cities/shelbyville/ your holiday shopping plan will be.
Tips to Get a Holiday Loan
To get the best rates and terms on your loan, you will want to have good credit by the holiday season. Even without good credit, however, it is still possible to secure a holiday loan through a commercial bank or a local credit union.
- Eligibility requirements
- Origination or prepayment fees
- Credit impact
- Interest rates
- Meeting monthly payments
- Loan amounts
How Should I Get a Holiday Loan?
There are certain things you can do before the holiday season approaches to increase your chances of getting a good Christmas loan.
You can get in touch with the credit bureaus to find out what your score is and what you may be able to do before the holidays to make it better.
You may find a better rate at the third bank you look at versus the first two, so it’s always good to have options.
Third, remember to think about the things mentioned earlier that will help you get a good holiday loan, including how much you need, eligibility requirements, and interest rates.
You don’t want to get roped into something that you didn’t quite understand and end up with a loan that will hurt you financially in the long run.
This is where your previous planning is going to come into play because you don’t want to borrow too much and not be able to pay it off, especially when paying interest.
Make This Christmas Magical
With the help of Christmas loans, families all over Canada are able to buy and gift presents that their loved ones will never forget.
Christmas isn’t all about giving or receiving gifts, but it is a time-honoured tradition that a lot of families hold dear to their hearts. With a little extra financial help, you can make this Christmas the best one yet.
If you’d like to get some more information about how our loans may help you, feel free to contact us.