The winter holiday season is a time to celebrate with family and friends. While the spirit is genuine, it oftentimes takes a lot of cash to prepare for the festivities. Between Thanksgiving Day, Christmas, and the New Year, it can be an expensive time of year. Making a financial plan in advance can be a smart way to avoid unpleasant surprises when you view your bank and credit card statements in January. A holiday loan is a potentially useful resource to finance your seasonal spending, but make sure you know what you’re getting into before you get started.
If you have less than perfect credit, you might be especially stressed about how to afford the various expenses that crop up during the holidays. But you should know that there are plenty of holiday finance options online, even for bad credit or poor credit. This article will tell you some important facts to keep in mind if you’re interested in holiday finance loans.
What are holiday loans?
An unsecured personal loan could be used to finance extra expenses during the holiday season. Funds might be spent on things like traveling for out-of-town visits, shopping for gifts, and hosting parties or other seasonal events. One of the benefits of taking out a personal loan for holiday expenses is that many loans can be used for a wide variety of purposes.
Whether you need financing for:
- Christmas shopping,
- groceries on Thanksgiving Day,
- financing for your party to ring in the New Year,
- traveling or vacation,
holiday money loans could be an option worth considering.
You can request personal loans during the holiday season through online lenders, making it easy to compare. LendGenius is not a lender but we do provide one simple form that upon completion, may connect you with a lender.
There are a number of lenders who can offer a personal loan for holiday expenses. While you can certainly request a loan from a traditional source like a bank, you can also look for holiday finance options online. One of the potential downsides with going to a bank is that their approval process can sometimes be very time-consuming. You may have to wait in a long line, and you’ll also have to visit the bank during their working hours, which can vary during the holiday season.
By contrast, you can fill out our simple online form and get the loan request process started right from your own home, any time of day, any day of the week. For many people, this is a more convenient way to look for holiday finance loans. Our form takes only a few minutes to complete, and the entire loan request process is relatively fast and easy.
Can I get a holiday loan?
The request process for a holiday loan is the same as it is for any other personal loan. Lenders review factors influencing your financial situation today, such as your credit score and debt to income (DTI) ratio. They typically also have requirements of either U.S. citizenship or residency, and you’ll need to be at least 18 years old.
If your credit is poor or your DTI is too high, some lenders may allow for a cosigner on holiday loans. You can use a spouse, family member, or close friend to take responsibility for the loan with you, allowing you to use their income or credit score to qualify for better loan terms. Just know that if you miss payments or default on the loan, their credit will be damaged just as much as yours.
If you’re looking for someone to lend you money at a low-interest rate, keep in mind that a better credit score will help your odds of getting approval. Although some lenders may offer loans with no credit check, most of them will need to see your credit before offering you financing.
What can holiday loans be used for?
There are a variety of reasons why a holiday loan might be useful. It’s no secret that after Thanksgiving Day, through Christmas, and up to the New Year is one of the busiest times of the year for shopping and spending online. And with possible days off work (and snow days and more), funds are sometimes scarce around this time, even with potential Christmas bonuses to boost financing.
In this kind of financial environment, many people find themselves looking for some extra cash at the end of the year. Fortunately, a loan is one way that you can get some holiday money that can be spent in many different ways.
Planning to take a trip this holiday? Vacations can be unexpectedly pricey, and a personal loan for holiday vacation spending could be a wise move. And even if you stay home for the holidays, there are other expenses that could rack up. Decorations, gifts, food, tickets to special events – all of these could threaten to bust anyone’s budget, but a holiday personal loan could help boost your wallet to prepare for these types of costs.
Christmas shopping can be a joyful experience, but it can also be a stressful one. If you don’t have enough funds in your wallet to get gifts for everyone on your Christmas shopping list, you might start to worry about showing up to the holidays empty-handed for your family. A holiday loan could be a great way to pad your finances for the Christmas shopping spree, so you can satisfy everyone in your life who needs a present.
What are the advantages and disadvantages of holiday loans?
Just like any financial decision in life, there are pros and cons to taking out a holiday loan. On the plus side, you can get quick funding if you’re approved for a loan, oftentimes this occurs within minutes. And since personal loans are considered installment loans, you’ll add positive payments to your credit history as long as you make them on time each month.
There are, of course, a few downsides to taking out a holiday loan. Depending on the lender, you may have extra costs such as origination fees. You’ll also be taking on additional debt, which is risky, especially for non-emergency expenditures. Be sure to have a repayment plan in place.
Whatever your reason for considering a personal loan for holiday expenses, make sure you understand the terms of any loan before you agree to them. Often, loans for bad credit or poor credit may have strict terms, so it’s important to be sure you know the costs and timetable expected of you before agreeing to a loan. If you do decide to take out a holiday finance loan or a holiday cash advance in 2019, you won’t be alone. Many people routinely use holiday finance options online or in storefronts, so chances are you can find an option that suits your situation.
Disclaimer: This is not legal or financial advice. Please consult a legal or financial advisor for your specific situation.