Holiday Loans: Where to Find Extra Cash This Season (Even if You Have Bad Credit)
The holiday season is a joyous time filled with Christmas carols, gift-giving, and delicious food. But as much as there is to celebrate, the season can also bring financial stress. From buying gifts for loved ones to picking out decorations, trees, and lights, holiday expenses add up fast!
What is a holiday loan?
Holiday loans are personal loans used for holiday spending. These loans can help cover extra expenses when money is tight.
Most holiday loans are unsecured, meaning you don’t need to put up any collateral. Instead, lenders typically look at your credit score, income, and job status.
Holiday loans are usually for smaller amounts, like a few hundred dollars, but you could borrow up to a couple of thousand depending on your need and ability to repay.
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What can holiday loans be used for?
Holiday loans are flexible enough that you can use them to cover a wide range of expenses, including:
- Plane tickets
- Gifts
- Food for the holidays
- Miscellaneous travel expenses
- Heating or utility bills
Essentially, you can use the money to pay for any essential expenses during the holidays.
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Benefits of holiday loans
Taking out a small personal loan could be one way to cover your expenses this time of year. But as with any type of loan, you should only borrow as much as you can afford to repay.
When used wisely, a holiday loan could:
- Reduce financial stress you might be experiencing during the holidays.
- Free up extra money, even if you have poor credit.
- Potentially offer same-day funding, depending on your lender.
💡Tip: A small personal loan could be a smart way to cover holiday costs without dipping into your savings or maxing out credit cards.
What to consider before getting a holiday loan
- Look at your budget to make sure you can afford the payments, including any interest or fees.
- Borrow only what you need and can comfortably repay.
- Choose a loan from a lender with a good reputation and positive customer reviews.
Staying within your limits and working with the right lender will help you enjoy the holiday season without carrying debt into the new year.
💡Tip: Remember to borrow only what you need to keep your payments manageable.
Where to get a holiday loan
There are many different options for holiday loans — from traditional banks to online lenders like Advance America. Each state has its own lending laws, so make sure you choose a trusted lender that follows local regulations and offers terms that fit your needs.
Banks
If you already have a bank, check to see if they offer personal holiday loans. Traditional lenders can often offer competitive rates, but their approval criteria can be stricter — even for long-time customers.
Online lenders
Prefer to skip the in-person visit? Online lenders make it easy to apply from anywhere. Just compare your options and stick with well-reviewed, reputable lenders to avoid scams and keep your information safe.
Credit unions
Credit union members often have access to loans with competitive rates and fees. You'll need to be a member of a credit union to apply, and you'll generally need good credit to qualify.
People you know
Borrowing from friends or family can be a great option if you're looking to avoid interest and fees. The key to keeping these relationships strong? Clear communication upfront about repayment terms and a solid commitment to following through.
Direct lenders
Direct lenders take the guesswork out of borrowing. They handle the entire loan process themselves, so you get a straightforward experience without the runaround. Plus, they're often more flexible with approval requirements than traditional banks or credit unions. Many can get funds to you quickly once you're approved, so you can tackle your holiday expenses in no time.
Can you get a holiday loan if you have bad credit?
Yes, you could get a holiday loan even with bad credit. While traditional banks and credit unions focus on your credit history, online and direct lenders take a more holistic approach — looking at factors like your income and employment history to determine what works for you.
Types of holiday loans with no credit check
Payday Loans
Payday Loans are small loans — usually a few hundred dollars or less — that don’t require a credit check because they’re based on how much you get paid. Since these loans are meant to cover expenses between paydays, you’ll repay the loan in full the next time you receive your paycheck.
Installment Loans
When you need more money than a Payday Loan offers — or a longer repayment period — consider an Installment Loan. You can typically borrow as much as you need upfront and pay it back over time in regular monthly payments.
Lines of Credit
If you know you’ll need access to extra money more than once, a personal Line of Credit may be a good option. This flexible safety net gives you ongoing access to funds up to a pre-approved limit. Tap into it whenever you need to — or keep it on standby. You’ll only pay interest on what you actually take out, not the full approved amount.
💡Tip: Compare lenders before applying to find terms, rates, and repayment options that fit your budget.
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4 alternatives to holiday loans
While holiday loans are a good option when you need extra funds during the holidays, they aren’t for everyone. There are other ways to get the money you need.
- Sell items. If you don’t want to go into debt, you can raise the money you need for the holidays by selling things you don’t use anymore. From garage sales to selling individual items on Facebook Marketplace, this will also help you declutter and make room for your upcoming gifts!
- Get a part-time job. Getting a part-time job at a store during the holiday rush is a good way to earn holiday money. You can also do remote work, take part in online surveys, or work for a food or grocery delivery service in your spare time.
- Monetize your property. From renting out your car or a room in your home, monetizing your property helps you avoid debt while doing minimal hands-on work.
- Get creative (literally). If you have a flair for creativity, you can make arts, crafts, and trinkets and sell them as holiday gifts. Etsy is a great place to sell your creations online, along with in-person sales at local craft fairs.
➢RELATED: 11 Ways to Earn Extra Money for the Holidays
Bottom line: Are holiday loans a good idea?
If money’s tight this season, a holiday loan can help cover costs and ease financial stress heading into the new year. Just make sure the loan fits your budget and you only borrow what you can comfortably repay after the holidays.
More holiday tips:
Notice: Information provided in this article is for informational purposes only. Consult your attorney or financial advisor about your financial circumstances.
About the author
Jalin Coblentz has contributed to Advance America since 2023. His experiences as a parent, full-time traveler, and skilled tradesman give him fresh insight into every personal finance topic he explores.