Customers are expected to spend four percent more this holiday than they did last year. The average American will allocate at least $1,007 to holiday gifts, treats, and other goodies. We can all use some extra cash during the holiday season.
Let’s take the Christmas tree, for instance. The average price of Christmas trees increased 125 percent over the past three years. Last year, it was $75.
If you’re short on money or lost your job, $75 may seem like a fortune. Not to mention the gifts, home decorations, and winter trips that are so popular during this time of the year. You might even avoid your friends altogether just because you feel obligated to buy gifts you can’t afford.
Luckily, it doesn’t have to be this way. Small personal loans might be exactly what you need to spread holiday cheer without breaking the wallet. Here’s what you should know about this type of loan!
A Quick Look at Holiday Spending
Americans are spending more and more money on gifts every year. In 2018, holiday sales are expected to reach $720.89 billion. Only 61 percent of customers are planning to wait for sales.
When you’re on a budget, the holiday season can bring a lot of stress and frustration. Your kids expect you to buy them something nice. Most likely, they want some cool toy they’ve seen on TV, which probably costs a small fortune.
Your friends expect gifts too. Sure, they won’t kick you out of their house for showing up with empty hands, but you won’t feel comfortable.
Plus, it’s going to be hard to decline their invitations to family meals, weekend trips, and other holiday events.
Apart from gifts, you’ll need money for food and holiday decorations. Not to mention that many gadgets and electronics go on sale during this time of the year, so you could save a fortune by shopping around Christmas.
The problem is you simply can’t afford it.
Maybe you just got fired. Perhaps you’ve had a big expense like car repairs or home remodeling. If you have bad credit, applying for a loan is not an option.
There’s one exception, though. You may still qualify for small personal loans.
This type of financing is ideal for small expenses, such as those incurred during the holiday season. You can surprise your family with a beautiful Christmas tree, make wonderful gifts to your friends and loved ones, and buy something nice for your home.
Are Small Personal Loans Worth It?
Small personal loans can help fill the gap between your account balance and your gift list. They’re often referred to as holiday loans or cash loans. You can apply online, so there’s no need to wait in line and drive all the way to the bank.
The application process is quick and straightforward.
Once you’ve found a lender that suits your needs, submit your contact details, checking account number, and proof of employment. If you don’t feel comfortable providing this information online, you may send your documents by fax.
Some applicants are eligible for instant approval. Others receive an answer the same day or the next business day, depending on the lender and verification requirements.
Holiday loans typically require no collateral and have fixed payments. You’ll know exactly how much money you have to pay back and by when.
Enjoy Greater Flexibility and Convenience
Online lenders are more flexible than traditional banks. Even if you have poor credit or no credit history at all, you may still receive the money you need for a perfect holiday season. Just make sure you afford to repay the loan.
How much money you can borrow depends on your income. If you’re unemployed, you can provide other income sources, such as:
- Unemployment benefits
- Housing income
- Dividends income
- Disability income
- Pension fund
- Social security income
- Freelancing income
The flexibility of small personal loans comes at a price. In general, these are more expensive compared to a traditional loan, so you can expect to pay higher fees and interest rates.
However, since you don’t have to provide collateral, you don’t risk losing your home, car, or other personal assets. You can only borrow a limited amount of money, making it easier to pay back the loan. Traditional banks do offer more money, but the risks are higher.
All in all, the benefits of small personal loans outweigh the risks. As long as you pay back the loan on time, you don’t have to worry about penalty fees and rising interest rates. That’s why it’s recommended to only borrow what you need.
Things to Consider When Taking Out a Personal Loan Online
There are a couple of things you need to consider when taking out a loan for the holiday season. First of all, treat this type of financing as any other product. Shop around, compare rates, and get multiple quotes from different lenders.
Loan requirements vary from one company to the next. Some lenders are more flexible but charge higher interest rates. Others have stricter requirements and smaller fees.
Go online and search for top-rated lenders nationwide. Since you can apply online, it’s not necessary to choose a local agency. Use Bonsai Finance to compare lenders with their advantages and drawbacks.
Check the eligibility criteria to determine whether or not you qualify for small personal loans.
For example, if you have bad credit, look up lenders that offer loans with no hard credit check. They will factor in your income level, finance history, and other aspects, not just your credit score.
Don’t wait until the last minute to shop for a loan. Even though most companies will review your application the same day, it’s better to be prepared in case they say no. This way, you’ll have plenty of time to research other lenders and their requirements.
Enjoy a Stress-Free Holiday Season
Take the stress out of the holiday season and spend quality time with your loved ones! Small personal loans make everything a lot easier.
Whether you want to decorate your home for Christmas, surprise your kids with a bunch of toys, or go on a vacation, you can get the money you need.
Interested to learn more about your financing options? Visit our Learning Center for more tips and in-depth information!