When the holiday season arrives, extra expenses arrive with it. If bills are already piling up and no extra money is available, people strapped for cash can look for low interest rate holiday loans for assistance. These smaller amounts, between $300 and $2,000 dollars on average, can be paid back quickly, or with greater interest over several months.
Where to Look
A loan to go on holiday can be applied for through banks, credit unions, and some payday lending establishments. The money must be used for non-debt resolving activity and usually has to be paid back within a narrow time frame. These are typically smaller loans for supplementing an existing budget and not for house or car payments. If the person’s credit is good, borrowing from a bank or credit union may extend the repayment period to as long as twelve months.
Some institutions only lend during the holiday months from October on, but a ‘fast cash’ lending service has less stringent requirements and is likely to lend the money anytime of the year. Depending on where the money is borrowed from, the application process can be fast and in some cases the approval is guaranteed.
The lenders who guarantee approval are the same businesses providing payday loan services. Their specialty is in short term loans for various necessities, and they require only basic personal information to approve an application. The applicant should take care to deal only with the service, and research their reputation first. Many websites will capture personal information to exploit it, or to invite lenders to bid on the loan.
The Expensive Season
During the holiday season, the bills can stack up fast. Traveling to family and friends homes, gifts, and hosting dinners all contribute to the cost. Many people turn to credit cards for extra cash, including taking out a cash advance, and others look to sell items they no longer need or pawn them.
A short term, high interest debt can be acquired with no credit, bad credit, and with or without collateral. Additional fees apply for higher risk borrowers, but paying the money back on time will keep costs down. On average, 25% interest is charged for every one hundred dollars borrowed. Although bad credit is acceptable, many lenders will deny people with a bankruptcy on their record in the past year.
Getting Approved
Applicants for small loans for the holidays will have an approval or denial within an hour. With the exception of applications received on Friday evenings or weekends, lenders try to get the money wired within 24 hours of approval. The process is fast as there are no credit checks and few documents required. However, every applicant’s check writing and loan payment history will be examined against national databases.
Use caution when seeking a short term lender, as some charge exorbitant interest and require payment by the following payday before charging additional fees; some will allow up to one month. If the loan is too much to repay within the ten to fourteen day due date, consider alternatives or do without. At 25% interest, holiday loans can spiral out of control quickly.
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