Loans for Christmas Shopping are getting actual because according to the latest surveys, the vast majority of US citizens find their Christmas shopping rather a stressful undertaking.
Fortunately, there are lenders ready to extend their helping hand for the time of the holiday.
A holiday loan can be defined as a sort of emergency personal loan.
Just like other personal loans, Christmas loans can also be unsecured or secured.
In this case, your eligibility and terms are determined by factors that greatly vary depending on the lender.
However, in most cases, your income and credit history will be taken into consideration.
Xmas Loans and Bad Credit
As you might have already guessed, with bad credit, you can hardly rely on the best terms and interest rates.
So, you should cautiously approach Christmas loans for bad credit.
Such cash advances can have an adverse impact on your credit history if you come up with a late payment or even worse – fail to pay.
Make sure you can afford a certain repayment amount and avoid extending it.
In case of having some issues with your credit history, you’d better opt for a secured loan that suggests having some form of collateral.
Keep in mind that in case of inability to have your secured loan repaid, then your collateral will be repossessed by the lender as payment.
Christmas Loan Terms
You need to realize that Christmas loans have nothing in common with short-term ones.
In this case, terms suggest a period of 1- 5 years.
Despite, it’s a good thing to have a couple of months to have the loan repaid, but taking several years just to repay the cost of this holiday isn’t a rational move.
You’d better opt for Christmas loans enabling you to have your loan repaid early without dealing with penalty fees.
Christmas Loan Interest Rates
As a rule, these loans have lower interest rates compared to credit cards.
A 2-year Christmas loan may have an interest rate of about 10.06% versus 16.97% if you use a credit card.
Payday loans can make you face off with three-digit interest rates.
The same is true for money advances.
Consider this when taking this loan:
- Fast funding: Choose an online lender, if you want to enjoy an accelerated funding process. If your loan is approved, you can even get it the same day you applied for it. As a result, you will have more time to better prepare for Christmas.
- A fixed timeline and monthly payments: These loans are installment ones. So, you’ll have to deal with monthly payments for a certain period. In this case, you will have enough time to fit your budget.
- Prequalification: Some lenders may allow you prequalify for a loan by simply pulling a soft credit inquiry that won’t do harm to your credit scores. If you submitting several prequalification applications, you’ll have your list of lenders narrowed down.
When opting for this loan, don’t forget to compare the interest rates, fees, monthly payments, loan amounts as well as borrower requirements for different lenders.
Thus, you’ll spot the most favorable loan options.
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