It’s never too early to start holiday shopping, and this year, the ability to jump on sales and specials is even more important. According to many retail experts, the supply chain that helps ensure store shelves are stocked has been majorly disrupted by the pandemic, meaning last-minute shoppers will be out of luck this year.
The holiday season is a big one for shoppers. On average, Americans spent about $1,000 on holiday gifts in 2020. The combination of expenses and timing may leave you feeling a like you need some quick cash for the holidays to be ahead of what figures to be a wild holiday season. As you plan your holiday shopping strategy, a personal loan could make a major impact.
Find out more about personal loans and how you can use them for Christmas money with this guide:
A personal loan is a lump sum payment that you can receive from a lender. The amount available to borrow can range from a quick infusion of cash to money used for major purchases or renovations. You repay the personal loan in fixed monthly installments at a set interest rate. If you need money for Christmas and have an idea of how much you’d like to borrow for holiday shopping, this is a potential course of action.
Many lenders offer an online option to help qualify you for a loan, but you can also stop in or call to discuss if a personal loan is right for you. Most will have an online form you can fill out and then you’ll be contacted by the lender to discuss the amount you need and terms of the loan.
Before you fill out an application, check your credit score and request a copy of your credit report from the three main bureaus. This will help you identify any errors or inaccuracies that may lower your score, or even lead to a loan application denial.
Once your credit score is squared away, gather the following documents:
Depending on the lender and your reason for applying for a loan, you may also be asked to provide other documentation and information not listed above. Some of this may be required when you make the initial application, while other information may be requested while your application is being processed.
If your credit report reflects a low score, some lenders may still be able to offer Christmas loans for bad credit candidates. However, you may wind up with higher interest rates or early payoff penalties. It’s important to make sure you shop around and do research before settling on a lender to ensure you get the best possible result for your personal loan.
If you’re in a rush, the personal loan process is ideal. Some lenders can get back with approvals in approximately 30 minutes, which means you can get your Christmas loan and head to the mall to start spreading some holiday cheer.
One of the best ways to find local personal loan options is to contact the lenders with which you have already built a relationship. This could include your bank or credit union, as well as lenders you have worked with in the past.
If you want to explore your options among lenders you haven’t worked with in the past, consider using a Google search to find personal loan providers in your local area. You can also ask friends and family for recommendations or read reviews of local lenders to see which ones have built up a strong reputation in your area.
When you’re working with a potential lender for the first time, do your research and ask thorough questions to make sure you trust that lender before you apply for a loan. Ask to see their schedule of fees for personal loans, their current rates and testimonials from past clients. Don’t fill out an application unless you’re confident in the lender’s expertise and integrity.
