Jessica Rodz October 19, 2020
Many of us relate Christmas to snow, Santa Claus, sparkling lights, tempting feasts, gifts, and spending happy time with family and friends. However, for some, amidst the festivities, there’s financial stress, unfortunately. With gifts, decorations, spiced wine, and lavish dinners, it’s obvious to say that the festival season can put a strain on your wallet. Surrounded by happiness and joy, Christmas loan proves to be a miracle for all those in need. Financing a holiday is one of the solutions if you want to borrow funds for the festival. There are other options too. This blog explains you of what a Christmas loan is, its pros and cons, as well as alternatives to help you get through the holiday season happily at the same time keeping your personal finances intact.
Getting a Christmas LoanThese are personal loans to cover all the holiday expenses incurred by you. They are offered in several forms: One of the forms is represented as payday loans but in a festive mask. The harmful side weighs heavier than the right side of it. In the case of these funding sources, the repayment terms are concise, and interest rates are soaring high. While borrowing, you have to be extremely careful as it can land you up in more debt than you initially had. Personal Loan Instalment is another form being offered. Comparatively, the payday loans are far more expensive than personal loans with an interest rate.
Bad Credit HistoryUnlike traditional bank loans, bad credit doesn’t hinder in the approval process. You can easily apply for an instalment loan online and get it approved. Within 48 hours of approval, the money gets deposited into your bank account.
- The online process involves less paperwork and no one-to-one interactions. There’s also less paperwork and no face-to-face appointments. Whether you opt for a payday loan or personal instalment loan, you are eligible for Christmas loans for bad credit. Considering all the factors, there are a few essential distinctions between these two lending products.
- Payday loans are attractive as they offer funding with no credit check. However, payday lenders face a high risk due to short repayment timelines and higher interest rates. Generally, no positive repayments are reported, so it is not easy to build your credit score.
- Personal instalment loans involve a customisable repayment schedule and a far lower interest rate. By borrowing personal instalment loans, it is easy to build a good credit score with positive monthly payments.
The two sidesThere are always two sides of a coin. All forms of financing have pros and cons both attached to them. Christmas Loans are no exception. Before proceeding, it is essential to understand and evaluate the advantages and disadvantages of financing.
Advantages /Disadvantages / Alternative of Christmas LoansAdvantages
- Alleviates financial stress
- Fast and convenient
- Credit-building opportunities
- High interest