Holiday Loans: Where to Find Extra Cash This Season

The holiday season is a time of joy for millions of Americans, filled with Christmas carols, gift-giving, and delicious food. But as much as there is to celebrate, the season can also bring financial stress. From buying gifts for loved ones to picking up decorations, trees, and lights, holiday expenses add up fast! 

What is a holiday loan? 

If you’re tight on funds this holiday season, you may need to apply for a holiday loan to make ends meet. Holiday loans are personal loans you apply for to cover expenses during the holiday season. 

In most cases, holiday loans are unsecured loans, which means you don’t need collateral to pay for them. Unsecured loans are granted based on factors like your credit score, current income, and job status, although the requirements will vary by lender. 

Holiday loans are usually small-dollar loans. They can be anywhere from a few hundred to a few thousand dollars, and you should only apply for an amount you can comfortably repay. 

What can holiday loans be used for? 

Holiday loans are flexible. You could use the funds to cover a wide range of expenses, including: 

• Plane tickets 
• Gifts 
• Food for the holidays 
• Miscellaneous travel expenses 
• Heating or utility bills

Essentially, you could use a holiday loan to pay for any essential expenses during the winter season. 

Benefits of holiday loans 

Taking out a small personal loan could be a good way to cover your expenses this time of year. In fact, the right holiday loan: 

• Could reduce the financial stress many of us experience during the holidays. 
• Is often available to borrowers regardless of credit score or financial standing. 
• Might offer same-day funding, depending on your lender. 

As with any type of loan, you’ll need to decide if a holiday loan is the right option for your situation. 

What to consider before getting a holiday loan 

Assess your budget to ensure you can comfortably cover any interest or fees in addition to the borrowed amount. Aim to stay within your spending limits and avoid using loan funds for non-essentials. By borrowing only what you can realistically repay, you can celebrate without the worry of lingering debt after the holiday season. 

Where to get a holiday loan 

The good news about holiday loans is that they’re available through several types of lenders — from brick-and-mortar establishments to online venues, the possibilities are numerous. 

Each state sets its own requirements, rules, and regulations when it comes to lending. As such, it’s important to do your research and choose a reputable lender that adheres to these regulations and offers the type of holiday loan you’re looking for. 

Banks 

If you’re an accountholder at a local bank, there’s a good chance you could apply for a personal holiday loan from them. Personal bank loans often have lower interest rates and fewer fees than alternative lenders. However, they also have stricter borrowing standards and not all applicants will qualify — even if you’ve been a bank customer for years. 

Online lenders 

If you don’t want to deal with a lender in person, there are plenty of online lenders to choose from. Online lenders have a wide range of requirements and borrowing standards, so it’s important to do your research and compare your options. 

You’ll likely be able to find an online lender to approve you for a holiday loan. Just be cautious, as scams do exist and protecting your financial information is essential. Be sure to read reviews thoroughly and select a trusted lender. 

Credit unions 

As with banks, credit unions are a popular option for personal holiday loans. They tend to have looser borrowing requirements than banks, but stricter ones than online lenders. You also need to be a member to secure a credit union loan. 

People you know 

If you’re worried about defaulting on a holiday loan, borrowing from friends, family, or someone you know directly could be a good option. Just be sure to repay the loan as quickly as possible so that you don’t put strain on your relationship! 

Direct lenders 

Another option is to apply for a holiday loan with a direct lender. Unlike banks and credit unions who work with third parties, direct lenders handle everything in-house. As such, they offer easy applications, quick approvals, and same-day or next-day funding. 

Direct lenders also tend to have looser borrowing standards than banks and credit unions. You can secure a loan online or in person, depending on the lender and your preferences. 

Apply online for a holiday loan

Can you get a holiday loan if you have bad credit? 

The nice thing about holiday loans is that they’re available to most borrowers, regardless of your credit score. Whether you have good, bad, or no credit, a holiday loan might be a realistic option for you. 

Just be aware that bad-credit borrowers will have fewer options. Borrowers will need to demonstrate their ability to repay the loan, such as providing proof of income. 

4 alternatives to holiday loans 

While holiday loans are a good option when you need extra funds during the holidays, they aren’t for everyone. There are other ways to get the money you need. 

1. Sell some stuff – If you don’t want to go into debt at all, you can raise the money you need by selling your belongings. From garage sales to selling individual items on Facebook Marketplace, selling your belongings will also help you declutter and make room for your presents to come! 
2. Get a part-time job – Getting a part-time job at a store during the holiday rush is a good way to stay out of debt. You can also do some remote work, take part in online surveys, or work for a food or grocery delivery service in your spare time. 
3. Monetize your property – From renting out your car or a room in your home, monetizing your property helps you avoid debt while doing minimal hands-on work. 
4. Get creative (literally) – If you have a flair for creativity, you can make arts, crafts, and trinkets and sell them as Christmas presents. Etsy, for example, is a great place to sell your creations online, while you can also sell them in person at a local craft fair. 

Holiday loans from Advance America 

Payday Loans 

Payday Loans, also known as Cash Advances, are small loans that range from $100 to $1,000. They’re easy to apply for, don’t require a credit check, and are perfect for holding you over until your next payday. You’ll be expected to repay a Payday Loan on your next payday. 

Installment Loans 

If you need slightly more money or a longer repayment window than a Payday Loan offers, Installment Loans could be the way to go. Installment Loans could allow you to borrow anywhere from a few hundred to a few thousand dollars. You then repay what you owe in regular monthly payments. 

Lines of Credit 

Maybe you need access to funds for a few months and aren’t exactly sure how much money you’ll need. If that’s the case, opening a Line of Credit could be a good, flexible option. You’ll have ongoing access to your Line of Credit up to your approved amount and you’ll only have to pay interest on funds that you withdraw. 

➢RELATED: Holiday Loans for Bad Credit

Bottom line: Are holiday loans a good idea? 

If you’re feeling financially stretched during the holidays, a holiday loan could provide the extra funds you need for essential expenses or unexpected costs. This way, you can enjoy the season without stressing over finances. 

Keep in mind, however, that a holiday loan should fit within your budget — and you should only borrow what you can afford to repay after the holidays.