Need some extra money to get through the holidays? Compare affordable personal loans to cover your holiday expenses.
Christmas is a time for giving, but it can come as a surprise how much you end up needing to spend.
If you're looking to spread your Christmas expenses over an extended period or you want to consolidate some leftover debt after New Year's Day, this guide will help you sort through your options.
What options do I have for a Christmas loan?
You have a number of options when it comes to covering your Christmas expenses.
The right option for you will depend on your income, credit history, how much you need and whether you're looking to fund upcoming purchases or consolidate your Christmas debt.
Here's a quick breakdown of some of your options:
Short term loans. If you need a small loan of less than $2,000 and can repay it in a few months, you may consider a short term cash loan. These loans, also called payday loans, are a common choice for people with bad credit.
Compare your short term loan options below.
- Unsecured personal loan. If you have good credit and are looking for a larger loan amount, you can consider an unsecured personal loan. You can borrow from $3,000 without needing to use an asset as security, and have between one and seven years to repay it. Jump ahead and compare unsecured personal loans.
- Line of credit. If you're unsure how much you'll need over the Christmas period you may want to consider a line of credit. Unlike a personal loan, you get access to a credit limit that you can draw on. You only repay as much as you use and once you repay what you owe you can use the funds again.
How can you get a loan for Christmas?
Applying for a loan for the holiday season is quick and easy.
- Find a lender by comparing your options below. Look at the costs of the loan, how quickly you'll receive it and if you'll be eligible.
- Click "Go to Site" to go through to the lender's site and confirm the loan details and your eligibility.
- Apply directly on the lender's site. You will need to provide personal, employment/Centrelink, financial and banking information.
- Bad credit applicants considered
- Fast approval service
- Borrow up to $2,000
100% confidential application
Sunshine Short Term Offer
A short term loan with a fast and easy application available to those with good or bad credit. You can apply today and get approved for up to $2,000.
- Loan amount: $2,000
- Loan term: 9-15 weeks
- Turnaround time: 30 minutes (conditions apply)
- Fees: 20% of borrowed amount + 4% of borrowed amount each month
- Income requirement: 50%+ of income cannot be from Centrelink
- Bad credit borrowers OK
- Quick and easy approval
- No credit checks
Short term loans for Christmas spending
If you need short-term cash, you can compare your payday loan options below.
How do these loans work?
A Christmas loan can provide you with much-needed funds to help you get through the holiday period or consolidate your debt after Christmas. As with any loan, you have to repay the loan amount along with any interest and fees it attracts within a given time period. Typical Christmas loans are unsecured so you don't have to worry about providing collateral as security against the loan.
You can use proceeds from these loans for all Christmas-related expenses, from buying presents or decorating your home to simply buying products you've wanted to for a while. A good way to establish how much you should borrow is to work on a budget ahead of time and take into account that repayment periods of such loans tend to vary between one and five years.
Unsecured loans to see you through the holiday period
An unsecured loan could be used to fund your Christmas spending. Provided you meet the requirements set out by the lending institution you could borrow a larger amount of money for your gifts or family holiday.
What features should you look for in a Christmas loan?
If you're looking for a loan for the holiday period, you should always compare a number of options before making a decision.
You should make sure to compare the rates, fees and repayment information of each product and also consider the following information before applying:
- Does it offer repayment flexibility? Lenders will usually line up your repayments according to when you get paid. Some also allow you to make extra repayments or pay off the entire loan early without penalty.
- When will you receive the loan? Lenders need to verify your personal and financial details, but some can approve your loan and have the money delivered within 24 hours.
- Consider the differences between different loan types. If you are applying for a payday loan of less than $2,000, you will not pay more than 24% in fees. If you apply for a larger loan you may pay more. Make sure to compare lenders as well as loan products to find a more competitive offering.
Have bad credit? You might still have options available
Bad credit follows you around no matter what time of year it is, but there is a way to access credit at Christmas time no matter what the state of your credit file. Here are some options to consider this Christmas season if you're in need of a loan and your credit history is less than perfect.
- No credit check loans. These loans, commonly referred to as no credit check payday loans, require no credit check in order for approval. You will generally have to submit three months of bank statements to show your incoming and outgoing money and also provide evidence of your income.
- Short term loans. While most payday lenders still do credit checks, some will accept applications from those with bad credit. Lenders, such as those in the table above, consider your application based on your current financial position.
Tips to keep your Christmas costs down
If Christmas is getting more expensive each year, it may be time to take back control of your holiday budget. Here are some tips to spend less next year:
- Pay down your debts before the holidays. A lot of stress comes from debts piling up, so getting on top of your existing debt well before the holidays can help ease this. Pay off your credit card debt and, if possible, make extra repayments on your loan to reduce how much you pay in interest.
- Consider a 0% purchase credit card. These cards let you spend interest-free for a certain period of time, helping you to keep costs down during the holiday period. Compare your options here.
- Utilise your rewards. If you are part of a rewards scheme, Christmas could be the time to spend your hard-earned rewards points on shopping items. If you're looking for ways to earn rewards there are various credit cards that come with rewards programs, letting you earn points for every dollar you spend.
- Not only have a budget, but have a plan. If you organise the presents you're going to get beforehand you'll limit your chances of overspending. You'll also give yourself time to find the best deal.
- Shop online and save. You can save time and money by shopping online using coupon codes or by using the finder Christmas gift guides.
- Have a repayment plan. If you do overspend, know how you're going to pay it back. Choose your debt consolidation method – whether it be personal loans, credit card balance transfers or both – and then make payments within a specific timeframe to get out of debt as soon as you can afford to.
Pros and cons of taking out a Christmas loan
- Get access to money when you need it the most. A loan can help if you're running short of money to deal with Christmas expenses or want to carry on with your holiday plans.
- Fixed fees. Many short-term lenders come with fixed fees and rates so you'll know what you have to pay when you apply for the loan. You'll receive a detailed repayment schedule and payment dates. Repayments are generally made via direct debit.
- Getting into debt. You could end up in debt if you're not sure how to go about repaying your loan. It's important to make sure you know exactly how you're going to repay the money before you sign on the dotted line.
- Falling behind on other commitments. If you are borrowing money to get through Christmas, it is important not to fall behind on other repayments during this season.
Things to avoid with Christmas loans
- High interest. Make sure you compare interest rates between competing loans. It makes sense to avoid loans with high interest rates, but you might not have this luxury if you suffer from a poor credit history.
- Hidden fees. An easy way to avoid paying hidden fees is to go through the entire loan documentation carefully before accepting its terms and conditions. The law requires lenders in Australia to inform borrowers of all associated fees and charges, so by going through the related paperwork you will know exactly what to expect.
Christmas should be a joyous occasion for friends and family. Ensure you can afford the repayments on any loans you take out by comparing your options using the comparison tables above. Alternatively, you could consider cutting down your expenditure – we've curated a guide of the best gifts you can buy for under $20 here.