5 Reasons a Holiday Loan May be Right for You

Some financial institutions offer loans specifically intended to help borrowers cover holiday expenses. Between gifts, meals, travel, decorations, and more, the holidays can be a stressful and expensive time. Depending on your circumstances, it can sometimes help to take a small loan, typically to be repaid in a year or less. How can you know if a Holiday Loan is right for you?

Holiday Loan Basics

1. The holiday season has you more worried about your finances than filled with holiday spirit. We should be enjoying “the most wonderful time of the year,” not a time of stress and anxiety. If a few extra bucks will give you peace of mind, it might be worth exploring a Holiday Loan.
2. You’ve needed to rely on more expensive alternatives, like payday loans, in the past. These types of products seem to offer the kind of relief you’re looking for. But take note: they can result in future headaches due to the fees and costs involved.
3. You’re looking to build or improve your credit. A Holiday Loan can be a great way to borrow a smaller dollar amount for a shorter period of time. If you have direct deposit in place and set the payment up to happen with some sort of automatic transfer from your account, an added benefit of a Holiday Loan might be to improve your credit worthiness – both with that lender as well as others.

Are You Prone to Loan?

1. You’re able to afford the monthly payment. Some relief during the holidays might sound attractive. However, setting yourself up for stress the following year due to burdensome payments is probably not the best solution. Make sure the payment on any Holiday Loan works for your budget and won’t make your finances too tight the rest of the year.
2. You have a long-standing relationship with your financial institution. Some lenders still employ a relationship-based style of lending. This means that the more solid and substantial your relationship with your financial institution, the more likely you are to be approved. This applies to Holiday Loans or other loan types. Length of the relationship, past loans and payment performance, and direct deposit history can all improve your approval chances.

Start the Celebration with a Holiday Loan

Lots of financial institutions offer some kind of product that can provide a little extra money during the holidays. Some are formally labelled as a “Holiday Loan.” Others might offer personal loans or signature loans, which can also fund your holiday season. The requirements for approval will inevitably vary depending on what lender you use, so be sure to shop around and ask lots of questions before applying. No matter what, don’t let the temptation of extra money this season cause you to take on more payment than you can afford. But provided you do your homework and understand your budget, a Holiday Loan might just be right for you.

Interested in a holiday loan? Reach out to FFCCU to see if you are eligible, and start your application today.

Posted In: Lending, Lending