What You Ought To Know About Holiday Loans

The holiday shopping gets full swing in festive season. With extended seasonal sales, How can you resist all the great deals? If you are stuck with maxed out credit card and savings are also not sufficient, consider a holiday loan.

What is a holiday loan?

A holiday loan is a small term personal loan that typically ranges between $500 and $5,000. Holiday loans such as Christmas holiday loans have gained noticeable popularity over the past few years. Experian reports that the demand of these loans mostly increases in November and December as compared to September and October. If the borrower requests for a loan amount more than $1500 and opts for an installment plan, then a holiday loan with fixed interest rate and a monthly installment repayment plan lasts from 1 to 5 years. However, holiday loans by online lenders may offer a lower interest rate as compared to rate offered by a traditional financial institution, such as a credit union or bank.

What should you consider before applying for a loan?

• How Much Money Do You Actually Need: Create a list of items that you require for a celebration in the form of gifts or for your own use and mention related expenses in that list to get an estimate of the budget. Consider your financial resources such as savings, credit cards etc. Once you figure it out that how much money do you have and how much more do you need, you can decide the loan amount.
• Eligibility Criteria: To apply for almost all loans, a borrower must be at least 18 years old resident of state or citizen, needs a job or another regular income source, an active bank account and valid email address and phone number. So, one must check beforehand if he/she meets this eligibility criteria.
• Loan Fees: Figure it out on the first step what are the loan fees and other fees involved in the procedure and make sure if you can afford it.
• Interest Rate: Holiday loan interest rates can vary significantly, depending upon the state regulations, lender and loan products offered. Even if you have poor or low credit you can still qualify for holiday payday loans but interest rate would be certainly higher for them.

How Quick Is a Holiday Loan?

The answer to this question depends upon the lending institution and the type of the loan. Nevertheless in case of short term loans, you can complete and submit online application in about 10 minutes with basic personal/professional details along with required loan amount. After granting guaranteed loan approval, the loan amount is transferred into borrower’s mentioned bank account in 1 to 2 business days. With other loans like bank loans, the whole procedure can take a week or more than a week.

Celebrations must be there because you have hard earned for the whole year. But be wise and do not exaggerate spending and drag yourself into debt which can ruin your joy. The holidays may last few days but wise financial planning can reap benefits for your for the whole year ahead.