Ah, the merry season is coming- sparkling lights, beautiful decorations, and an endless delicious platter of cookies. I can’t wait for Christmas Eve, right? Christmas comes once a year, but it also carries lots of financial burden.
As per the new report of Holiday Retail Outlook for 2023- Canadians plan to spend approx. $1,347 per person during the Christmas and holiday season.
Christmas is a festival to show family and friends how much you care about and love and support them. It’s a fantastic festival full of zest and zeal, but what about your bank balance?
Every year, Christmas approaches, and you are bombarded with an avalanche of expenses in the form of parties, gifts, food, and decorations. Hey, wait, what about Christmas loans? These loans are becoming an increasing trend in Canada these days, especially during the Christmas period. Let’s dive deep into the world of Christmas loans in Canada and discover some positive aspects.
Why Christmas loans are so popular in Canada?
The popularity of Christmas loans during the Christmas season has been rising steadily over the many past years in Canada. Many trusted lenders offer such loans offline as well as online. Canadians find loans for Christmas easier to get funds and make merry without breaking their piggy banks.
Christmas loans or holiday loans are nothing but a type of short-term personal loans that are designed to provide instant cash to cover holiday expenses. Christmas Day loans also help those who are declined for bank loans due to bad credit or low credit scores.
Do people take out loans for Christmas?
Only some apply for Christmas loans, which is a personal choice. Many Canadians save over the year in advance to bear the Christmas expenditures. At the same time, others celebrate Christmas Eve and don’t see expensive gifts, decorations, and special food preparation as essential to borrow money for it.
However, many individuals take out loans to cover their all-holiday expenses and celebrate Christmas Day to the fullest. Christmas loans can be suitable for those people who need extra funds to cover their festive season costs. Responsible borrowing is the key to a stress-free and enjoyable Christmas or holiday season.
Where can I get a Christmas loan Canada?
Christmas loans are just like any short-term personal loans that help you attain funds for your holiday spending and other Christmas-related expenses. At FundingOwl, we help you to match with Canadian best and trusted direct lenders at minimum affords and time.
To increase your chances of Christmas loan approval, follow the steps mentioned below:
- Prepare your required information: Before applying, arrange the necessary and ordinary details related to your personal, banking, and income. It helps you complete the application faster and error-free.
- Submit an online application: Use FundingOwl to complete a simpler, easier, and secure application form for a Christmas loan. Ensure to provide correct and up-to-date information to increase approval chances.
- Compare loan options: Once you receive loan offers, compare them, especially interest rates, repayment terms, and additional fees.
- Choose and apply with a suitable lender: Select the lender and offer that matches your current financial needs and apply.
- Receive funds ASAP: If approved, the funds will be directly transferred to your bank account by Interac e-transfer within 2-5 minutes*, allowing you to start Christmas shopping or cover expenses as soon as possible.
Budgeting Tips to help you save for Christmas instead of getting Xmas loans
- Start by opening a dedicated Christmas savings account: Opening a savings account dedicated to your Christmas funds is recommended early in the year. By saving a little every month, you can easily arrange enough sum by December, meaning Christmas Day. This money-saving approach helps you to avoid taking out short-term loans or increasing your credit card bills.
- Use budgeting apps to save money: Today is the age of the Internet, and various budgeting apps are available on the Play Store and App Store, like KOHO, that are specially designed for Canadian users. These fantastic tools help you to track and manage your spending, set monthly saving goals, and provide overall financial insight. Using these apps lets you know where to cut and allocate the funds to save for the Christmas budget.
- Try the ‘Secret Santa’ approach: If you live in a large family or friend circle that is big enough, try the ‘Secret Santa’ This method adds surprises and fun and reduces the burden of purchasing gifts. It not only increases the sense of community and love but also helps everyone to save money. In this way, you don’t need extra credit from personal loans for Christmas expenditures.
How Christmas payday loans different from other credit options?
Christmas payday loans online are short-term, high-interest, and unsecured personal loans. Usually, such loans are offered for 16 days to 12 months. When we need money fast, payday loans are the ideal option.
Payday loans for Christmas are offered at lenient terms and flexible repayment options, even people with bad credit may also easily qualify. Other features that make Christmas payday loans in Canada different include the following:
- Smaller loan amounts: How much you can borrow depends upon your lender and your affordability, but Christmas payday loans are typically offered from $100 up to $1,500.
- Shorter repayment time: Payday loans are specially crafted to cover short-term and urgent financial needs when your next payday is far away. Although, some payday lenders now offer it for 6-12 months. But remember that the longer you take it, the higher you pay interest rates and fees.
- Easy to get approval: Unlike traditional banks and lenders, payday loans are accessible at lenient terms and instant approval. Payday lenders only want to see if you can afford to repay your loan or not. It means that even if you have bad credit, you can still apply for payday loans and get funds for your Christmas expenses.
- Fast funding: Today, most modern payday lenders in Canada offer Christmas payday loans with e-transfer, allowing you to get funds within 2-5 minutes after approval, even on weekends. So, no more waiting for holiday shopping…
What are the pros and cons of Christmas loans?
Before applying for Christmas loans online in Canada, knowing its benefits and disadvantages is very important. Here’s an overview:
Benefits:
- You can get instant funds on time for holiday shopping, gifts, and other expenses.
- They are available at flexible terms that suit your budget.
- If you repay on time, you can improve your credit score.
- Fast, simple, and easy online application, accessible 24/7/365.
- Usually, lenders accept all forms of income, even government benefits like ODSP.
- Best option for people with bad credit or low credit history to borrow money.
Disadvantages:
- Interest rates and additional fees are on the higher side.
- Responsible borrowing is required to avoid more financial difficulties.
- Repayment should be on time; otherwise, it negatively impacts your credit score.
How much can I borrow with a Christmas loan?
Christmas loans usually range between $100 to $5,000 in Canada at FundingOwl. However, the amount might differ depending on other factors, such as your lender, income, credit history, and, most importantly, your ability to repay. Always remember to borrow responsibly and only take an amount you can comfortably repay.
Can I get Christmas loans for bad credit in Canada?
The short answer is yes. Getting approval from traditional banks and lenders can be challenging if you have low or bad credit. However, short-term Christmas loans for bad credit are available at FundingOwl. Even if you have bad or no credit, you may still apply for a loan for holiday expenses.
Our lending panel is always willing to help everyone facing a cash shortage. That’s why they consider other factors, such as your income when assessing your loan application. Remember that bad credit Christmas loans come with high-interest rates and extra fees.
Can I apply for a Christmas loan on benefits?
Yes, applying for a Christmas loan is possible while receiving government benefits in Canada. Payday loans and installment loans are the popular types that accept income from benefits as a repayment valid source for a loan. However, ensure that your benefits income is enough to repay the loan within the agreed date.
