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Christmas Day Loans Best Loans to Finance Your Holiday Needs

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It is the Christmas season. You have excellent plans for your friends, family, good Christmas food, and of course, put gifts under the Christmas tree.

But there is a problem! You don’t have enough cash to finance all the holiday expenses. The Christmas holidays can be pretty stressful if you don’t have enough savings to meet your needs. Luckily, there is still a financial option for you, and that is a Christmas day loan.

Typically, this is a personal emergency loan that you can consider to get quick cash for the holiday season. The reason lenders brand these loans as Christmas day loans is a pure marketing gimmick. So, how does Christmas day or holiday loans work, and which are the best loans to finance your holiday expenses?

What Should You Consider When Taking a Loan for Christmas?

Christmas day loans are like any other loan, and you will have to pay them off on time. And sometimes they can be pretty expensive hence plunging you into a financial rabbit hole. Moreover, before taking Christmas day loans, consider the costs involved, the repayment terms, and the total amount you will have to pay back. Also, know the amount of loan you need and whether you have other financial options than a personal loan.

Another thing is to consider how personal loans can affect your credit score. Do you want the money to consolidate your debts or direct them to your checking account?

What is The Cost of Christmas Day Loans?

Knowing the cost of a holiday loan is very crucial. Typical personal loan fees include — Interest rates, loan origination fees, early payoff, and late payment fees.

Interest rate is the monthly cost you will incur to borrow the money. 

Loan origination —the loan processing fee— is the amount your lender deducts from the loan money to cover the admin and processing costs. The processing fee can be a percentage of the loan amount you need or a flat-rate fee.

Early payoff costs are the money your lender can charge for repaying your loan earlier than you’d agreed.

Late payment fees are the penalty you pay for paying off your debt late.

With that in mind, the cost of Christmas day loans can vary depending on your creditor. According to recent research by the FR (Federal Reserve), the average annual percentage rate (APR) is 9.34%.

Best Types of Christmas Day Loans

Here are some of the Christmas loans options you can consider to get fast and affordable loans for your holiday season.

1. Personal Loans

Personal loans are one of the best holiday loans option you can use to get a quick financial fix during the holidays. Typically, a personal loan is a consumer loan that you obtain to meet your individual needs.

You can use a consumer loan to pay for a high-ticket item, pay for your vocation, home repairs, consolidate your debts, medical bills, and any other personal emergency.

There are two categories of consumer loans; secured and unsecured loans.

Secured personal loans need you to have collateral that you can use as a security for the loan. And that means that when you default, your lender will repossess the collateral to pay off the debt.

On the other hand, an insecure personal loan doesn’t require collateral, which means you can borrow money from a lender without providing security like a car or your house.

You can get these types of loans from your bank, credit company, or online lenders. Also, you can qualify for a consumer loan even if you have a low credit score

Here are some of the best personal loan lenders you can consider for fast loan approvals.

Christmas Day Loans Best Loans to Finance Your Holiday Needs

2. Peer To Peer Loans

Peer to Peer loans is also an option when you need a holiday loan. This type of loan is where you borrow from a group of people or companies without the traditional way of lending money. With peer-to-peer loans, you can qualify to get a loan even with bad credit.

The typical fee here is the origination fee you can pay upfront, or your lender can take it from your loan amount.

3. Holiday Loans From Family and Friends

Another option for Christmas day loans is taking a loan from your friends or family members. The best part about this kind of personal loan is that it is informal, and you may only need a contract to get the loan.

Also, holiday loans from relatives can offer a lower interest rate, and you don’t need to worry about your banged-up credit score.

Furthermore, it is more beneficial when your family member or a friend benefits from the loan interest. 

4. Credit Card Loans

If you are running out of Christmas money, you can consider credit card loans. A credit card can be an excellent alternative if your credit score is good. Also, you can get credit cards with cashback and rewards on holiday purchases.

Furthermore, you can get a credit card with a 0% APR introductory offer. The only downside with a credit card loan is that the interest rates are higher.

5. Home Equity Loans and Home Equity Line of Credit

If you are a homeowner, you can capitalize on home equity to get Christmas day loans. Home equity loans are consumer loans you can take against your home equity. That means that home equity loans are secured personal loans. You take a second mortgage.

HELOC (Home Equity Line of Credit) works much like your credit card. You can borrow up to 85% of your home’s equity in this loan type and offer a flexible loan repayment structure.

6. Cash Advance

A cash advance is also an excellent choice for consumers with bad credit. You can use your credit card to get a cash advance at an ATM, or you can visit your bank to get a cash advance. Remember, a cash advance has a limit, and you can’t draw the whole credit card limit as a cash advance. Also, a cash advance has a higher APR.

In all, the holiday season can strain you financially. Hopefully, the above options can help you celebrate your holidays without hassle.

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"‘Before you spend, earn. Before you invest, investigate. … Before you retire, save.’"

William A. Ward

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