Christmas is the hottest time of the year. So many things are to be done and bought. But where to get money? And in this case Christmas loans is the best alternative. Read the article to descover:

What is a Christmas Loan?

It’s a personal loan which can be used for Christmas expenses (for instance, gifts, travelling and for other plans). As any kind of a loan, Christmas loan should be paid back on time. The scheme of payments is set by your lender. Usually, the sum of money which can be taken varies from $500 to $1000. If you have a bad credit or poor credit history it’s not prevention for you to take a loan. But in every case decision is made by a definite lender. That’s why 100 approval loan cannot be guaranteed. 

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Christmas loans near me: terms and conditions

The terms and conditions are set by loan providers. Traditionally, for clients with good credit histories the best terms and conditions are offered. For those who cannot boast it can be offered higher interest rates. 

Christmas loans Online: basic types

There are 2 types of Christmas loans: secured and unsecured. The first type – secured presupposes collateral. To apply for unsecured loan it is necessary to have a good income. Unlike unsecured, secured Christmas loans are more flexible. But at the same time there is a possibility to lose your collateral if you won’t be able to pay. 

Steps to apply for a Christmas loan

  1. To be on the safe side it is recommended to estimate your credit score. It gives you an opportunity to consider the chances of taking a loan. The better the score is, the bigger the chances are.
  2. Study the market of Christmas loans Online. Analyze the terms and conditions and choose a service to rely on.
  3. Make sure the sum of money you wish to borrow is affordable for you. 
  4. Fill in the application form. You’ll be asked to mention personal information and provide with certain documents demanded by loan providers. Check the information. Send the request. 

Christmas loans: for and against

Among pluses of Christmas loan there should be mentioned:

  1. Speed. It takes no more than 1 business day to receive money.
  2. Its purpose. You can spend money on your Christmas needs and expenses.
  3. Fixed interest rates and payments. As soon as you’ve made a deal with a lender you have fixed figures which satisfy you and they won’t be changed. 

Among minuses of Christmas loan there should be mentioned:

  1. Interest rates can be higher unlike interest rates of any other part of the year.
  2. In some cases Christmas loan is just another name for a payday loan. It means that there can be fees equivalent to APRs.
  3. The collateral can be taken if you fail to pay the loan back.
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Alternatives to Christmas loan

There can be offered 3 positions to consider:

Savings

The best variant is to use your savings for Christmas expenses. There can be set automatic transfers out of your banking account to cover the needs. But before doing so make sure that your budget complies with your plan with expenses.

Credit cards

There’s one vital thing about credit cards. There can be extremely high APRs if you don’t pay off your balance fully. 

Buy now, buy laterThere have been launched such programs by numerous brands: buy now, pay later by apple, by now, pay later amazon and so on. You can find lots of buy now pay later apps. Such programs offer 0% interests. The only demand is to pay 25% out of price upfront. It is also a must to pay 3 additional payments every 2 weeks after 25% payment. Before you start working with buy now, pay later apps study carefully the terms and conditions.

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