Loan Advice

Find a Christmas Payday Loan for 2021

by Jim Hughes   Oct 26, 2021

According to the National Retail Federation, shoppers will spend up to $859 billion on gifts, holiday items, and non-gift purchases for themselves and their families this year. That's up 10% from last year, showing that shoppers are more confident about spending this holiday season.

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Not everyone can afford to put presents under the tree, especially when many are still recovering from the effects of a pandemic. Taking out a Christmas payday loan for 30 days to get the money needed to pay for the most expensive holiday of the year might be an option.

What is a Christmas Loan?

Family enjoying Chtistmas morning.

A Christmas loan is a reliable type of loan to borrow during the holiday season to meet a person's wants and needs. Christmas loans are similar to personal loans, where the customer can borrow their desired amount to spend on whatever they may need. With the borrowed amount, customers may be free to spend the money on whatever they want. They can shop for holiday presents or book a holiday trip. 

Christmas loans are also known as Christmas payday loans when they meet the following criteria:

  • Loan amount is less than $500, usually between $100 to $300
  • Money is due back within about two weeks
  • The borrower plans on using their next paycheck to pay back the loan in full

Some lenders may also offer holiday installment loans. These are for larger amounts up to $5,000. It would be unreasonable to expect the borrower to pay the entire loan on their next pay date, so the term here tends to be about one year. 

How to Apply for a Christmas Payday Loan

Piggy bank with holiday presents around it.

The best time to apply for Christmas payday loans is now in order to have everything necessary ready before Christmas. It's important to note that anyone over 18 years of age may be eligible to apply for a xmas payday loan, even people with bad credit history.

Customers wishing to apply for a Christmas loan can apply online by filling out a fast and easy application form. Once the payday lender reads the application, they may contact the borrower to inform them about the loan approval. 

Borrowers also have the option to visit a Christmas loan lender's store in person without an appointment.
If the payday lender approves the loan, they will transfer the money into the borrower's bank account.

What Are the Benefits of Getting a Christmas Loan?

Hands spelling out the word "benefits" against a holiday background.

Getting a Christmas loan has several advantages. 

  • The first and most apparent benefit of getting is to cover all the necessary expenses to make the best of the holiday and the festive season.
  • As mentioned in the paragraph above, the second benefit is that most consumers can apply for a Christmas loan. That’s great because everyone deserves to enjoy the season and be jolly. It's good to keep in mind that even though people with a bad credit score may qualify for a Christmas loan, they may not be able to borrow as much as people with good credit scores can.
  • Third, applying for a Christmas loan is relatively fast and convenient. The application is short and easy, and lenders require minimal documents.
  • Fourth, borrowers have the option to apply for a Christmas home online from the comfort of their homes.
  • Lastly, when applying for a Christmas Loan, lenders don't ask for a guarantor or collateral. This makes Christmas loans unsecured loans.

What Are the Disadvantages of Getting a Christmas Loan?

The most notable drawback of getting a Christmas payday loan is that the interest rate on is considered a bit higher compared to loans from traditional banks or credit unions. Most of the time, holiday lenders impose a high annual percentage rate (APR) on Christmas loans. It is no surprise that during Christmas, the payday lending industry benefits a lot from the interest fees.

Another disadvantage of getting a Christmas loan is that if the borrower defaults on the loan, the lender may have the right to file a lawsuit against them.

How Much Money Can You Borrow with Christmas Loans?

Man looking up loan amounts on his phone.

There are many different types of holiday loans. They vary in size, terms, and availability. By applying for a Christmas loan, borrowers can get loans ranging from $500 to $50,000. Some lenders even claim to give Christmas loans up to $40,000 if the borrower shows an excellent credit score, usually a score of 690 or higher on the FICO scale. Similar to a payday loan, the interest rate can be considered quite high compared to a personal loan or a small consumer loan taken from a bank or a credit union.

However, people have higher chances of being eligible for a holiday payday loan than other types of loans from traditional banks. Also, the funding process is much quicker.

How to Pay Back a Christmas Loan

When it comes to paying back a Christmas loan, most of the time, borrowers have two options. If a customer has borrowed a small loan, they have the option to pay it back entirely in a single payment on the day that the payday lender has scheduled. Most of the time, if the loan is small, customers pay it back by their next paycheck.

If the borrowed amount is relatively large and the customer cannot pay the entire amount in a single payment, they have the option to pay back the loan in installments. The lending partner and the borrower will work out a repayment schedule, and the customer will pay their loan in equal monthly payments over the course of time agreed by both parties.

What Do You Need to Qualify for Holiday Loans?

First and foremost, in order to apply for any loan, borrowers must be at least 18 years of age.

To apply for a Christmas loan, borrowers may need to present the following documents:

  • Government-issued ID
  • Proof of income
  • Social Security number
  • Bank account number

Some lenders may ask for additional documents. Some may have a minimum monthly requirement on the borrower's salary to ensure that they will be able to pay back the loan on time since there isn't collateral or a guarantor.

Is Jackson Hewitt Doing Holiday Loans this Year?

Man and woman filling out a tax return online.

Applying for an early refund advance for the holidays is an excellent idea for those who don't want to pay interest rates but still get an advance. The APR for an early refund advance from Jackson Hewitt is 0% from MetaBank.
To be eligible for an advance, borrowers must present a recent paystub or proof of income. This way, the borrower will have access to money before the Wage and Tax Statement (W-2) is available.

Before getting the loan, borrowers need to check if they prequalify a tax refund loan by providing some information online. Doing this helps borrowers estimate the holiday loan amount for which they may qualify. Then, borrowers should book an appointment based on the dates provided above.

Some Financial Tips to Help You Through the Holiday Season

Family sharing the joy of the holidays.

When shopping for Christmas, it is a good idea to shop around to find the best deals and the lowest prices. Also, it is possible to get great gifts for Christmas without having to spend a lot of money. Here are some tips that may help save a few bucks and stretch your Christmas loan.

Having a pre-planned budget for the holidays is also a good idea to borrow smaller loans. Getting a payday loan with a savings account will be a big help during this season.

Consider buying second-hand items when shopping for gifts. This is an excellent way to save some money and reduce the production of greenhouse gas emissions.

Shopping from the sales section or, more preferably, the clearance section will help in saving a couple of bucks.
When shopping online with your credit card, avoid unnecessary costs such as shipping fees. Also, most stores offer coupon codes or deals on free shipping if the shopper spends a certain amount after they get a Christmas loan. 

Get crafty. Making a gift instead of buying one is one of the best gifts that someone can receive because the person has put their precious time and energy into making the gift.

Lastly, it is an excellent idea to teach kids to be humble and not greedy when writing their letters to Santa Claus. This will keep the list short and help parents invest that money in something else.

Favorite Christmas Loan Lenders

You should always watch out for scams, especially when borrowing money around the holidays. Instead of requesting an xmas loan from just anywhere, you may want to consider using one of the following providers:

  • Cash Express – These guys built their company around getting cash to their customers as fast as possible. It feels like every year they get faster. Even with the holiday rush, they still find a way to get money to a surprising number of people. They also offer check cashing, installment loans, and other financial services.
  • Check Into Cash – This is another company with a long history of lending small loans in a hurry around the holidays. They have physical locations all across the country, which can be one of the fastest ways to get your money by Dec. 25.
  • CashNetUSA – By focusing on the online customer, CashNetUSA provides an easy-to-use service for those seeking a fast cash loan for Christmas. 

The providers above may or may not operate in your state. One of the best ways to find lenders that are available is to fill out a loan request form. We can help you get started right here, and then you will hopefully be one step closer to funding a festive and happy Christmas. 

Jim Hughes, author at OpenLoans
Director of Content
Look to Jim for advice on budgeting, savings, insurance, stocks, retirement funds, and other topics in personal finance.
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