Need some extra money to get through the holidays? Read our guide to find a loan that's right for you and your family
If Christmas feels like it has come a little earlier this year, you might be eligible for a personal loan to help see you through the holiday period. You can compare your unsecured loan options to find the right lender and loan to help you with Christmas presents, flights to see family or even money to keep the kids entertained while they're on school holidays. See what options are available below.
How you can apply for a Christmas loan
Applying for a loan for the holiday season is quick and easy.
- Find a lender by comparing your options on the table below. Look at the costs of the loan, how quickly you'll receive it and if you'll be eligible.
- Click through to the lender's site and confirm the loan details and your eligibility. Just click "Go to Site".
- Apply directly on the lender's site. All you need are personal, employment/Centrelink, financial and banking information.
- Centrelink borrowers considered
- Fast approval service
- Borrow up to $2,000
100% confidential application
Sunshine Short Term Offer
This is a short term loan offer with a fast and easy online application for bad credit borrowers who are employed. You can apply today to 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
- Bad credit borrowers OK
- Quick and easy Approval
- No Credit Checks
Payday loans for Christmas spending
If you need short-term cash, you can compare your payday loan options below.
Warning about Borrowing
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
- For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
- Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
- If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94
The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.
* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.
What options do I have for a Christmas loan?
The options you have available to you will depend on your income, whether you have good or bad credit, whether you are employed and your general financial circumstances. Here's a quick breakdown of some of your options:
- Payday loans. If you need a small loan of less than $2,000 and can repay it in a few months, you can consider a short-term cash loan. These loans are a common choice for people with bad credit. Compare your payday loan options above.
- Unsecured personal loan. If you have good credit and are looking for a larger loan, you can consider a personal loan – no security required. Borrow $3,000 and above and have between one and seven years to repay it. Jump ahead and compare unsecured personal loans.
- Bad credit personal loans. Larger personal loans are also an option for people with less-than-perfect credit. You can find loans up to $10,000 with fast turnaround time and flexible loan terms.
How do these loans work?
A Christmas loan provides you with much-needed funds to help you get through the holiday period. but if you limit your spending to money you get through the loan, you can keep your finances in check as well. As with any other kind of loan, you have to repay the loan amount along with any interest and fees it attracts within a given time period. Typical Christmas loans attract fixed interest rates and are unsecured so you don't have to worry about providing collateral.
You can use proceeds from such a loan 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 in 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?
Making sure you compare loans for the holiday season is an important task. You should make sure you know the rates, fees and repayment information before applying and also consider the information below:
- Does it offer repayment flexibility? Lenders usually line up your repayments according to when you get paid and some allow you to make extra repayments without charging any penalty. You also might be able to pay off the entire loan ahead of time without paying a penalty – check all of this before you apply.
- When will you receive the loan? Given that almost all lenders rely on technology to verify your personal and financial details, you can expect a reply to your Christmas loan application in less than 24 hours. Funds are distributed soon after.
- Remember to compare interest rates and fees. If you are applying for a payday loan less than $2,000, you will not pay more than 24% in fees. If you apply for a larger loan you will pay more. Make sure to compare lenders as you might 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 require no credit check in order for approval. The way they normally work is you have to submit three months of banks statements to show your incoming and outgoing money and also provide evidence of your income.
- Payday loans. While most payday lenders still do credit checks, some still 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 each Christmas is getting more expensive than the last, it's 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 make extra repayments to your loan so you can redraw (although, consider fees if applicable).
- 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 the chance of overspending. You'll also be able to find out where to buy it the cheapest.
- Shop online and save. You can save time and money by shopping online thanks to coupon codes, which you can get here at finder.com.au. That is, along with shopping guides for everyone in your life.
- 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 is affordable to you.
What you might consider before taking out a Christmas loan
- Get access to money when you need it the most. If you're running short of money to deal with Christmas expenses but know you'll come into some funds soon, a loan can help. Getting a Christmas loan gives you access to money when you need it so you can carry on with your holiday plans.
- Fixed fees. You'll know what you have to pay when you apply for the loan as many short-term lenders come with fixed fees and rates. You'll receive a detailed repayment schedule and payment dates, and your repayment will usually be direct debited from your account on the due date.
- Getting into debt. If you're not sure how you'll go about repaying the money you borrow, you could get into debt. Make sure you know exactly how you're going to repay the borrowed amount 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 you should 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 this luxury if you suffer from a poor credit history.
- Are there 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 is 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.