As the term suggests, Christmas loans are the installment and personal loans provided in the festive season. Such microcredits help borrowers get through the expenses associated with this holiday. For instance, many borrowers apply to Christmas loans to pay for numerous presents or get a jump on the long weekend. We will tell you about the key features of these cash advances and the way you can obtain them on the most favorable terms.
Specialists advise to apply for this type of payday and installment loans at least a week before the actual holiday. I this case, you will have enough time to get the necessary sum and buy all the gifts and products in due time. One of the great things about these cash advances is that they are processed within a few hours. As a rule, borrowers receive the money the same or the next business day.
Today, there are many lenders offering Christmas payday and installment loans and their terms vary over a wide range. Thus, you can easily find the company with the most beneficial terms. Nevertheless, it is important to remember that such cash advances are quite expensive due to their availability and high speed. In accordance with the 2016 NerdWallet online lender survey, the interest rates for the personal loans provided in the festive season varies from 20% to 36%.
If you take out a Christmas payday loan, you will have to pay it off in one large amount, with all additional fees and charges. As a rule, such microcredits are granted for the period of one month. As for the installment loans, they are repaid in a series of prescheduled monthly payments. For example, such cash advances can be refunded during 6 or 12 months. In general, the exact time you will have to pay off will hinge on the lender you choose. Many companies offer flexible repayment schedules so that their clients have no issues with their debts.
The total amount of money you can borrow for your Christmas gifts depends on the type of the microcredit and the lender you have chosen. Generally, the size of the online payday loan is limited to $1000, while online installment loans range from $1,000 to $3,000, or even more. Specialists note that you will hardly need more than that for your Christmas presents. The fact that you don’t borrow plenty of money is actually a good thing, as the total sum you will have to pay off eventually won’t be so dreadfully large.
In any case, it is up to you to decide whether to take Christmas loans or to avoid such microcredits. Naturally, it is great to obtain a pretty good sum of money for all the gifts you’d like to buy. But what about the debts you’ll have to repay several months later? For instance, if you take an installment loan amounting to $1,000 for one year at an interest rate of 20% per year, you will have to overpay $221.50. Keep these figures in mind and do not forget to pay off in due time. In this case, both installment and payday loans will do only good for you.