As Christmas day arrives near, you might wonder about enjoying the party with your friends and family. Christmas day is a festival of sharing gifts with your dear ones and shopping. But wait! Christmas season bring lots of expenses.
It would help if you bought presents for your relatives, organized a Christmas eve party, or might need to travel to meet your friends and family. Whatever the reason, the moral of the story is that you must have enough money to bear all such expenses.
According to Statista’s Christmas costs in Canada 2021 survey, most Canadians spent on gifts, decorations as the subsequent most significant expenditure, and food expenses.Â
In fact, for some Canadian families, the Christmas season is one of the most expensive times of the year.
Are you worried about the lack of money during the Christmas celebration? If yes, then there’s something fantastic that can help you throughout the season and never let you lose the financial grip. It is known as Christmas loans.
Christmas loans- In Nutshell
There are several lenders available who offer Christmas loans online or via the storefront. Some lenders follow fair lending policies, while some offer such loans for predatory motives. So, knowing every aspect of Christmas loans is essential to avoid these fraudulent activities.
Whizz™ helps you in this move and assists in finding the right lender for you. We always suggest checking your current financial situation before applying for new credit. Make sure you can afford your loan repayments and meet the lender’s eligibility requirements before applying.
Let’s dive deep into our main topic about Christmas loans.
What is a Christmas loan?
Christmas loans are a type of short-term personal loans that are designed to fund the expenses of Christmas. As we know, Christmas is one of the busiest and most expensive times of the year. We need to have enough money to celebrate Christmas with complete joy and jest, but what if you fail to do so?
Organizing Christmas eve parties, gifts, food, and decorations require more funds, leading to financial stress. It is impossible to maintain your budget throughout the year and save money for the Christmas celebrations.
The good news is that Christmas loans sort out all your financial problems. You can take out Christmas loans anytime if you need money for a party, decoration, or gifts.
There is a wide range of lenders who offer Christmas loans in Canada. You can choose these loans from local banks, credit unions, and online lenders. Christmas loans could be an excellent option for borrowers who want last-minute shopping for the Christmas celebration.
These loans are instant approval, offered at low-interest rates, with no collateral required, and come with flexible repayment options.
What to consider before getting a Christmas loan?
As we discussed above, it isn’t easy to maintain the budget for the Christmas celebration. It became tough when only two paydays left before the final Christmas eve. But at this time, short-term Christmas loans work like magic.
If you decide to borrow some fast cash to pay all the expenses related to Christmas, we are showing some crucial points for you below. Before applying for a Christmas loan, consider the following things, especially if you are a new borrower:
Can you afford to repay your loan?
It is a critical point before applying for Christmas loans. Check thoroughly about your capacity to repay your short-term loans. Calculate how much money you need to borrow. Taking a short-term Christmas loan that you can’t afford to repay in the future is a non-sense decision.
The best way is to make a budget, save some money, reduce the loan amount, and then borrow for what you need for Christmas. By doing this, you can quickly reduce the amount and also afford to repay.
Only borrow what you need
Similar to the above point, estimate the costs of the Christmas celebration and set a target on how much you will spend on gifts, shopping, and other expenses. Don’t forget about small expenses such as Christmas tree decoration etc.; at last, only borrow the amount you can easily afford to repay on the due date.
It is always good to save a little money every month, by doing this, you will not need to borrow money for next Christmas.
Check the interest rates
If you can’t be able to make saving for the Christmas celebration, then applying for Christmas loans might be the last restoration. There are various other borrowing options, such as payday loans or credit cards, that you can use for Christmas.
Such short-term loans are easy to apply, instant approved, and dispatch money within a few minutes, but they are expensive too. Whatever type of credit option you choose for the Christmas celebration, make sure they suit your situation best and charge the slightest interest.
Pros and Cons of Christmas loans
Pros of Christmas Loans
- Instant funds:At the time of celebration, you want money as soon as possible. Several online Christmas loan lenders claim to deposit the loan amount within a few minutes or the same day.
- No retractions:Unlike some conventional loans, you can use your Christmas loans to prepare for the festival and also spend them to cover holiday expenses. There are no usage restrictions on your loan.
- Fixed payment and interest rates:Christmas loans are for short-term usage and usually come with fixed interest rates and monthly payments. So, you can easily make loan payments without compromising your monthly budget.
Cons of Christmas Loans
- High-interest rates:Â Christmas loans are a type of short-term loan and might come with higher interest rates that increase your Christmas expenses.
- Almost payday loans:Â Mostly, Christmas loans are advertised in the form of Christmas payday loans. These loans charge higher annual percentage rates (APRs) of 400% or more. Additionally, lenders require you to provide your bank details to set up auto withdrawals of their loan payments. The best advice is to compare all the Christmas loan offers and choose the one that suits your affordability.
- You could lose collateral:Â If you apply for a secured Christmas loan and default on your loan payments, you could lose your collateral forever. Check your financial strength before applying for a secured loan.
Where can you get a Christmas loan?
Usually, Christmas loans sound like personal loans to cover your holiday or Christmas celebration expenses. When you search the Internet, you will find that most of the Christmas loans are payday.
It is not new; payday lenders use fancy words as their advertising strategy to attract customers and trap them into a debt cycle. In reality, payday loans harm your financial life. The interest rates of such loans are sky-high, and repayment time is also concise.
Instead of a payday loan, you might choose personal loans for Christmas. The interest rate of personal loans is reasonable as compared to payday loans. You can apply online, get approved online, and get money straight to your bank account on the same day.
Can you get a Christmas loan with bad credit?
Of course, yes. Your application will be considered even if you earn less than a perfect credit score. It is a bitter truth that getting a loan with bad credit is difficult but not impossible. But still, some lenders offer Christmas loans with bad credit; all you need to do is find them.
Whizz™ helps you in this search journey! We aim to help you and everyone financially so that you can enjoy your Christmas with complete joy. We have direct lenders who never deny their lending decision, even if you have a bad credit history. Follow these steps to get your Christmas funds:
- Let us know your credit requirements
- Wait for a while and get initial-stage approval
- Send in your financial documents
- Get final confirmation
Affordable Christmas Loans in Canada
Christmas time is one of the most expensive periods of the whole year. Purchasing gifts and managing travel, decorations, mulled wine, and organizing big festive dinners, are something that strongly needs money. At the same time, it is difficult to cut expenses throughout the year and save money for Christmas because nobody knows when an emergency poke on us.
Never dismay yourself and apply for Christmas loans to bring back the mood of celebrating the festive Xmas holiday with complete joy and excitement.
At Whizz™, our Christmas loans in Canada start with a small amount of CAD 100 to CAD 1,000. However, if your unexpected expenses are more significant, you could apply for a loan up to CAD 5,000, subject to your affordability.
David secures his degree in Communication from Loyola University, Chicago. He loves to discuss through his passion of professional on fashion, finance and TV. He is a coffee lover.
📧: david.argy@whizzpaydayloans.ca
