And if you’re reading this, you might be one of them.
If you have bad credit and don’t have a job or a way of making the money you need to have a merry holiday, you might think all is lost. How in the world will you get all of your holiday shopping done on a shoestring budget?
Luckily, there are loans for bad credit. While you may have previously thought you couldn’t qualify, you might actually be surprised.
In this article, we’ll go over some of the reasons why loans for bad credit can make your holiday happier.
1. You Can Get the Money You Need Quickly
If you’re strapped for cash and need money fast to tick off your Christmas list, a bad credit loan can be the answer to your prayers. While you may not qualify for loans that many of the banks and other institutions offer, you’ll likely qualify for a loan from a type of lender that works specifically with people who have bad credit.
You can receive a decision quickly and can get the money almost instantly after the decision was made. This means you can go out and go holiday shopping before the end of the Christmas season. And you’ll be stress-free!
2. Your Payments Are Fixed
With a credit card, the amount of money you spend on the card creates a variable and makes how much you pay each month different. With a loan, you know exactly how much you’ll pay back each month from the moment you take it out.
Although credit cards and loans for bad credit both often have higher interest rates, a loan allows you to budget much more efficiently. You’ll be able to choose a loan that has terms you’re able to pay off comfortably and affordably.
3. It’ll Help You Rebuild Credit
Rebuilding your credit is a fantastic gift to give to yourself during the holiday season. Since the payments are already fixed and known, you’ll be able to pay off on a schedule that’s comfortable for you. And you’ll be repairing your credit as you do so.
Taking out a loan for someone with bad credit is deemed a risky call by the financial institution, which is why you have to resort to these types of loans. But they’re an incredible asset, in that they can help get you on track for your financial goals.
In no time, you’ll have built back your credit so that you can get those lower interest loans, credit cards and purchase a home or car when you need to.
And that’s a Christmas gift you’ll be thanking yourself for years to come.
4. Your Interest Rates Are Often Lower Than a Credit Card
Loans carry a stigma with them, especially because it means you’ll have debt hanging over your head. But in actuality, many of them have lower interest rates than credit cards.
This makes things incredibly easy for you, as you’ll not pay back as much as you might with a credit card. Instead of paying back several times what you paid for your purchase, you’ll only pay back the percentage originally agreed upon.
The interest rate will never change, and you’ll always know how much you need to repay.
5. The Amount to Pay Back is Fixed
While with a credit card, you can constantly spend on it until you hit your limit, pay it off and then get into more debt, this isn’t the case with a personal loan.
With a personal loan, you have a set amount of money you can spend. Just because you pay some of it back doesn’t mean that you suddenly have more money to spend. This is how people get into thousands of dollars in credit card debt.
Your loan amount is fixed and won’t ever change. This is a great way to help you learn to manage your money in the future.
6. You Have an End Date for Repayment
A credit card has no end date. Sure, it has an expiry date, but as long as its active and there’s still debt on it, and a line of credit, you’ll keep getting it renewed. Unless, of course, you choose to cut it up and try and pay it off.
A loan has a date when the entire amount of the loan is due. This means that once it’s been paid off, it’s over and you don’t have to worry about it anymore.
You won’t be tempted just because you took out the loan to buy yourself a “little present” or buy something “just once” the way you might with a credit card.
When it’s done, it’s done. No more.
7. You Can Give Your Family and Friends What They Deserve While Rebuilding Your Credit
If you’re tired of scrimping and saving to give family members gifts that aren’t worthy of them, you can splash out (within reason) with a holiday loan.
Instead of buying your niece a set of pencils, you can get her a really cool computer program that allows her to create art on it. Instead of getting your mother another book, you could purchase her the eReader she’s always wanted.
After all, the holidays aren’t just about receiving, they’re about giving. And for most people, nothing brings more joy than giving gifts to their family members that they totally deserve.
8. It Allows You to Plan Ahead
Practicing sticking to a budget is a fantastic way to help you rebuild your credit. And with a holiday loan, you’ll have to do just that. It will also allow you to plan ahead, as if you get the loan several weeks before the holidays, you’ll know what you can and cannot spend.
Instead of scrambling at the last minute for chump change, you can get your loan ahead of time and relax. You won’t have to stress over paying money to your credit card or about borrowing money from a friend or significant other.
Your holiday shopping might actually start to be fun again because you can do it without waiting until the very last minute. Buying gifts ahead of time makes you more prepared for the holiday season, as well as more relaxed.
You can actually enjoy your time with your family and friends instead of feeling like you’re chasing time both on a budget and because your paycheck only allows you to wait until the last minute.
9. You Won’t Stress About Things Like Holiday Wardrobes or Holiday Meals
The holidays aren’t only expensive due to the number of gifts you have to buy for people. But they’re also expensive because many people choose to splash out on new wardrobe items and food. You may also be expected to contribute to, or even purchase and cook yourself, an expensive holiday meal.
If this is the case, having a loan can take some of the pressure off of you. You won’t have to worry about going into debt over the holiday extras, as you can put them in your budget and plan ahead.
And, you can make sure your family looks as snazzy as possible and is well-fed.
10. You’ll Have More Fun Playing Santa
If you’re a parent, you’ll have more fun playing Santa if you’re able to extend your budget. Many parents say that one of the best things about Christmas is seeing their children’s faces light up as they see the gifts under the tree.
While you may have to stretch your dollars, even with a personal loan, you’ll also be able to extend the holiday magic for your children. You won’t forget the looks on their faces as they see the tree filled with gifts on Christmas morning, all of which you were able to buy thanks to a holiday loan!
Loans for Bad Credit and Credit Rebuilding
Most people opt for loans for bad credit because they’re currently rebuilding their credit score. So, it is important you don’t “bite off more than you can chew” and take out a huge loan that seems impossible to pay back. Instead, you’ll want to take out a loan that you can realistically pay back.
After all, the loan is about helping you get back on your feet, not placing you further in debt that you can’t claw your way out of.
Check out some of our pro tips for taking out a personal loan to make sure you make the best financial decision for yourself and your family.
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