With all the excitement that comes with the Christmas season, no parent wants to have the horrible burden of telling their kids that Christmas has been cancelled this year. Financing Christmas with a Christmas loan is not the ideal solution, but it may be better than not having Christmas at all. So, with that let’s look through the three best Christmas loan options for you this festive season.
Getting an unsecured personal loan for Christmas is one of the better options available because you don’t have to worry about putting anything up as collateral. Even if your credit is less than perfect, you may still be able to qualify for a reasonable interest rate.
For example, Avant’s minimum credit score is 580, and its interest rates are much lower than that of a payday loan. Meanwhile, OppLoans has higher interest rates than Avant, but its minimum credit score is 500, and its loans are still less expensive than payday loans. Even so, it is not just the interest rate you need to worry about. Always remember that personal loans sometimes come with an origination fee. This fee typically ranges from 1% to 5%.
Normally, using a credit card to finance anything is far from a great idea. With higher interest rates and a low minimum payment, as well as no set repayment period, it’s a recipe for disaster. But if you can qualify for a 0% APR credit card, then making your Christmas purchases and paying off the balance interest-free should be relatively easy.
For example, the Citi Simplicity Card offers a 0% APR promotion on purchases and balance transfers for 21 months – that is almost two years to pay off your full debt. The main drawback? Well, 0% APR credit cards typically require good or excellent credit.
If you are struggling to get approved for a Christmas loan another way, consider an auto title loan as a last resort. Why the last resort you ask? Well, these loans come with a lot of risk. An auto title loan requires you to put up the title of your car as collateral for the loan. So, if you can’t manage to repay the loan by the due date, which is usually a few weeks or months after you receive the money – you could lose your car.