Pre-holiday expenses can seriously damage the home budget, which is why more and more people get loans for christmas. If you too need an injection of extra cash for gifts or buying Christmas treats, check where you can borrow it quickly and without formalities.
Why is it worth using a xmas loan?
We use loans for various reasons, but it is before Christmas that we most often reach for loans.
The average American family spends from $900 to even $1,500 on pre-holiday expenses. It is a sum that often exceeds the possibilities of the home budget, but hardly anyone decides to abandon the organization of holidays for this reason.
In the American tradition, holidays such as Christmas are treated as the most important days of the year. It is often one of the few opportunities to meet the whole family, so we want to accommodate it as well as possible and give the most wonderful gifts.
This is why most people who do not have enough money for this purpose simply take out loans. It is worth using them just before Christmas for many reasons:
- thanks to them you will organize great holidays – without the need to cut expenses and count every dollar,
- You can spend money from the loan on whatever you want – gifts, decorations, groceries, and even on elegant outfits,
- making a commitment is simple – you will get money without leaving your home, all you need to do is have access to the Internet,
- loans for the holidays are available without formalities – the service is available as an ID card, you also need a bank account, you can use the offer with no credit check,
- Before Christmas, loans are offered on attractive terms – in some institutions you can borrow cash even for free.
Online Loans for Christmas – types
In the offers of non-banking companies you will find two types of Christmas loans:
- payday loans – thanks to them, you will instantly top up your account with an amount from $100 to $1,000, and you will return the liability within 30 or 60 days in the form of a one-time payment;
- personal loans – they are granted in a larger amount, up to $35,000, and their repayment is spread over small installments for a period of several months.
Which loan for the holidays will be better? It all depends on your situation and needs.
It is a good solution if you need a small sum, e.g. a few hundred dollars, to cover your pre-holiday expenses. The payday repayment deadline is always 30 days, so you will pay off the obligation after the New Year. However, remember to choose the right repayment date – for safety, choose it so that it falls at least a few days after the planned date of payment of your salary or pension.
It is especially worth looking for a payday loan for free for the holidays. Some loan companies offer it to their new clients. Thanks to this offer, the loan will not cost you anything – after the holidays you will pay back exactly the same amount as you borrowed.
It will be a better choice when you plan larger expenses, e.g. you want to buy expensive gifts, go to the mountains or on the occasion of Christmas surprise your family with new electronics or household appliances. A high loan amount is simply better to divide into small installments that are easier to pay off.
Take Christmas loans wisely – 7 principles
In the pre-Christmas shopping frenzy, it’s easy to lose your head and make hasty decisions. Meanwhile, even a small loan for the holidays, however, will be a financial obligation, the incurring of which should be well-thought-out so as not to become a cause of further trouble.
If you want to avoid them, remember the 7 basic rules for using the services of loan companies:
- Think about whether you really need to borrow extra money for the holidays – before applying, make a shopping list and estimate your expenses, and calculate how much of your own funds you have. Perhaps it is enough to buy slightly cheaper gifts or prepare a more modest menu to fit in the budget.
- Borrow as much as you really need – the loan company may offer you a larger amount, which can be very tempting. You will certainly spend additional money, but you may not necessarily be able to deal with the repayment of the higher liability afterwards.
- Adjust the loan amount and repayment date to your financial capabilities – if you have low income, choose an installment loan, and if you prefer a payday loan, calculate whether its repayment after Christmas will not overwhelm your budget.
- Check the offer in-depth – choose cheap loans first; read the loan terms carefully, especially those regarding the costs of incurring a liability and the rules for taking advantage of the promotion; you must also check what are the procedures in the event of delay in loan repayment (is it possible to extend the deadline or spread the arrears into installments, etc.).
- Always pay off on time – thanks to this you will avoid unpleasant debt collection, entering into debtors’ registers and charging high interest for delay. Timely repayment of the Christmas loan will also help you build a positive credit history and make it easier to incur another obligation, e.g. for the next holidays.
- Use only proven companies and offers – the pre-holiday period is eagerly used by fraudsters who propose extremely attractive offers, but in fact they only extort money or personal data from customers. If you do not want to fall victim to them, use the services of a loan company that operates legally and is known on the market.
- Choose offers with promotions and discounts – before submitting the application, compare the offers of various lenders and choose the cheapest one, e.g. in a promotion; thanks to this, you will save on the cost of the loan, so taking it will be less noticeable for your budget.
Christmas loans guaranteed approval requirements
Christmas loans are generally easier to access than standard loans because their purpose is to allow customers to quickly and conveniently top up their account with the cash they need.
If you want to use them, it is enough to meet the basic conditions:
- be an adult,
- have a valid ID card,
- have your own bank account (preferably serviced by electronic banking),
- have an active mobile phone number and e-mail address,
- have a source of income – e.g. remuneration under an employment contract, contract of mandate or specific task, pensions, pensions, etc.
Can I get holiday loans for bad credit?
Organization of holidays is the greatest challenge for indebted people whose budget is modest due to the need to pay off other loans or financial arrears, e.g. to a bailiff. It is therefore worth knowing whether non-bank companies offer loans for holidays for bad credit, e.g. without checking the credit history in debtors’ registers.
It is worth saying that lenders are quite flexible in assessing the situation of customers, which is why many of them are able to provide financing to people with, for example, small arrears. There are also institutions that do not check all databases, so there is a chance to find a loan with no credit check.
Christmas loan – summary
We usually reach for loans at Christmas, because this holiday is associated with the highest expenses. You have to buy not only Christmas treats, but also a tree, decorations for the Christmas tree, lighting and, above all, gifts for your loved ones. What’s more, a week later there is New Year’s Eve and New Year, which also require considerable costs related to, for example, the organization of the event or going skiing.
Before taking a loan for Christmas, make a good assessment of the amount of the obligation and its repayment date, so that the additional funds will be enough for all expenses and at the same time that you do not start the new year with a completely cleared account. Therefore, an installment loan or a payday loan for 45 or 60 days will be a good choice.
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