Applying for Holiday Loans - Tips + Tricks

Have you started thinking about how much you will spend on holiday purchases this year? If you haven’t, it’s definitely time to get this on your radar. Every year, shoppers all over the U.S. spend dollar after dollar on that perfect gift for the special somebody in their life. But when they don’t take the time to set a budget, they can quickly overspend. Before they know it, they’re looking at their credit card statement and feeling a bit of panic, wondering how they’re going to pay it all off.
Overspending during the holidays isn’t an unusual phenomenon. But this doesn’t mean you need to become one of the seven out of ten Americans who spend more than they should on gifts. With all this said, we understand the need to participate in the holiday gift-giving experience. That’s why we want to offer some helpful tips and tricks about holiday loans—a reliable way to help you pay for all that holiday cheer while managing your maximum spend.

Understanding Holiday Loans

So, just what are holiday loans? As they imply, they are loans designed to help consumers get what they need for the holidays without depleting their emergency funds or maxing out their credit cards.

Holiday loans typically come in three forms.

• Personal Loans: These loans offer a fixed amount of money with set repayment terms, making it a bit easier to plan for your holiday expenses without taking on the worry of fluctuating interest rates. They are popular because of their flexible usage and manageable monthly payments.


• Short-Term Loans: Designed to be repaid quickly, these loans provide fast access to funds when you need them for immediate holiday shopping. Their convenience and speed make them appealing for those looking to cover smaller, urgent expenses.


• Credit Card Alternatives: For those who want to avoid racking up high credit card balances, these loans provide a way to borrow money without increasing credit card debt. They’re a popular choice for consumers who prefer more predictable payment terms and interest rates.

Benefits of Using Holiday Loans

While two of the biggest benefits of using holiday loans are the ability to keep your emergency fund protected and to avoid racking up further debt on your credit cards, there are a few other 

benefits as well.

• Quick Access to Cash: Holiday loans often have a fast approval process, meaning you can have the money in your account just in time to snag that last-minute holiday deal or to cover unexpected seasonal expenses. And remember, holiday expenses are about more than just gifts. Many consumers spend their money on decorations, food for family gatherings, and travel.


• Flexible Use: Whether you need to buy gifts, travel, or even cover holiday party costs, holiday loans can be used for almost any type of seasonal purchase. For instance, if you find yourself needing to book flights to visit family, a holiday loan can help cover the cost without disrupting your regular budget.


• Ability to Cover Seasonal Costs Without Affecting Savings: Okay, this one deserved a bit more of a callout. Holiday loans allow you to manage your seasonal spending without dipping into your long-term savings. This can be particularly helpful if you’re trying to keep your savings intact for bigger financial goals, like a home down payment or emergency fund, while still enjoying the holiday season. And we highly encourage consumers to make sure they have an emergency fund that they can dip into for emergencies that might come up.

Tips for Getting Approved for a Holiday Loan

Now that you know what holiday loans are and the benefits of getting one, let’s talk about how to increase your chances for holiday loan approval.

Check Your Credit Score First

Your credit score is super important in loan approval and the interest rates offered. A higher score often means better terms. Consider checking your score for free through services like Credit Karma or directly through your credit card provider. 

The average credit score in the U.S. is 717, which falls neatly in the “good category.” So, strive for a score of that or higher to get approved for your holiday loan. And, if your score needs work, take time to address any issues, like paying down outstanding debts, before applying.

Compare Multiple Lenders

Not all lenders offer the same rates and terms, so it’s worth shopping around. Use online comparison tools or visit local credit unions to find a loan that best fits your needs. This extra effort can help you avoid settling for a higher rate when better options are available. Remember, the higher the rate, the more you will pay over the course of your loan.

Gather the Necessary Documentation

Having your documents ready can make the process smoother. You’ll typically need proof of income (such as your paystub), a valid ID, recent bank statements, and credit history. Preparing these in advance will speed up the approval process and avoid last-minute delays in getting you access to your fast cash.

Calculate How Much You Really Need

It’s easy to borrow more than you need, so create a realistic budget for your holiday spending. List out gift purchases, travel costs, and other seasonal expenses to determine the loan amount that covers these without going overboard.

Consider Applying Early

Applying for a holiday loan early in the season can help you secure better rates and avoid the holiday rush. By planning ahead, you’ll also have more time to compare your options and prepare your finances.

Cash Loans Direct Can Help You Cover Your Expenses for the Holidays

If your credit score is keeping you from getting approved for a holiday loan, Cash Loans Direct can likely help. We offer payday loans and installment loans that can help out in lieu of more traditional holiday loans. Have questions? Contact us today.