We answer 12 frequently asked questions about borrowing money to pay for holiday gifts.
As the holidays creep closer, now’s the time to make sure your bank account is ready. If you need some extra funds to make sure you don’t miss a deal, you might have luck requesting a shorter-duration loan. Here are some of the most asked questions about this type of borrowing.
Is there a type of holiday loan where everyone is approved?
There is no sure thing when it comes to asking for money, but many find success requesting a payday loan. Payday lenders don’t work in the same way as traditional lenders, so you can forget most of the things you know about the lending process. Even those with poor credit or who are receiving disability or pension payments might be able to receive this type of funding.
If you have any recurring income, you may able to get a payday loan. The vast majority of lenders prefer that their clients have a bank account. In fact, many will require that you have proof of a checking account before you can receive funds.
It is fair to say that many payday lenders are willing to lend to those who may not qualify for loans elsewhere. Bad credit history may not automatically disqualify you.
Are there any direct lenders that will guarantee a payday loan?
The bad news is that there is no such thing as a lender who will guarantee a loan without checking your information. These companies are in the business of making a profit, after all, and they cannot put themselves into a position that will guarantee a loss of money. The only way to know if a company will give you a payday loan is to submit your information and let the company run it through their system. Every lender has their criteria to determine who can get a loan, and each company will weigh the pros and cons of your application before making a decision.
The good news, though, is that payday lenders have been known to work with customers with bad credit. Lenders will want to know if you have the means to pay back a loan. This doesn’t mean that you need a traditional job. Many payday loan companies will accept disability payments or even annuities as your proof of the ability to pay. If you’re willing to provide documentation, you may be able to find cash in a hurry.
While no company will give you a guarantee, most payday lenders will be willing to work with you to see if you can get loans for Christmas. If you’re worried about your chances, make sure to talk to the lender.
What type of loan is the best for someone who is in a hurry?
The traditional payday loan can serve as a fast way to get money. It’s not a like a bank loan that might take days or weeks for approval. Generally speaking, if a lender approves you, you could receive your funding in as little as one business day. In fact, many lenders will let you know if you have qualified for a loan within a few hours. There are even some lenders who can let you know within minutes, especially if you have all your information ready and you’ve filled out your paperwork honestly.
The payday loan industry is largely built on speed. Because these lenders use a risk-assessment model that allows for poor credit scores, the approval process is shorter than what you’d find at a bank.
One of the primary reasons people use this type of funding is the relatively short processing time. In some cases, customers receive the money in as little as one business day. Because these lenders know how important speed is to their clients, they typically tend to speed along the lending process. Expect not to wait too long to see your results.
Where should I go to get quick cash for Christmas if I have bad credit?
If you have bad credit, it may be harder to work with traditional loan institutions. Fortunately, alternative lenders are sometimes willing to take a chance on people with poor credit despite the inherent risk.
Loan providers see an uptick in business during the holiday season. If you’re currently wondering how you’re going to finance the holiday season, you wouldn’t be the first to consider a shorter-term loan. The good news is that finding such a lender is not too hard.
Most towns have at least one payday lender. These businesses are typically a lifeline to those who have a steady income but who may not have access to cash, so they tend to be better about issuing small or medium-sized loans. While they may not give out mortgages, these are the types of lenders that tend to help people out around the holidays and see that those who need cash now can get access to it quickly.
It should be noted that there are now many online payday lenders. These lenders may deposit your Christmas cash directly into your bank account.
How long will I have to pay back my holiday loan?
Every payday lender tends to have its own particular terms. Generally speaking, the length of time you have to pay back your loan depends on the loan program that you’ve chosen, the amount of money you borrow, and the terms that you have negotiated with your lender.
Short-term loans are typically paid back within a couple of weeks. If you borrow more money, you’ll generally have more time to pay back the sum. If you agree to a higher interest rate, you will want to pay back the loan as soon as possible. The faster you pay off your loan, the less you will have to pay. However, it does often make sense to spread the payments across several checks to avoid running into any unforeseen payment problems.
If you find that you’re having trouble making your payments, many lenders will work with you to find a schedule that makes sense for you both. Because these lenders are always better off when they receive payments, they may be willing to work with you to find a schedule that fits.
What are the most popular toys for Christmas 2018?
One of the most common reasons to get a payday loan around the holidays is to ensure that you get your child a great gift. While there are always toys out there that represent the latest fads, there are a few that look like they are shaping up to be big hits this holiday season.
Programming toys are big this year. Not only are there plenty of kits that are sure to delight tech-savvy kids, but you will also find a number of new sets that allow kids to live out their favorite adventures while learning more about programming. These include new programming kits based on The Avengers and Harry Potter, both of which have to be seen to be believed.
Video game consoles are also very hot this year. Both the Sony PlayStation 4 and the Microsoft Xbox One look to have some great bundles this year, especially around Black Friday and Cyber Monday. Nintendo’s Switch is also shaping up to be a big seller, especially with the release of a new Smash Brothers. Please note that these game systems can be big investments when you factor in the cost of controllers, games, and accessories.
How can I get the most from my loan money?
The best way to maximize your loan money is to use your loan to take advantage of limited-time deals. If there is a big sale that will let you get something for a deep discount, for example, you’ll be able to put your money to work. Likewise, any deals that allow you to save more as you buy more should allow you to get more for your money.
If you shop smart, many situations allow you to save money. Whether this means door-busters on Black Friday or just taking advantage of seasonal Internet sales, a smart shopper will always be able to stretch his or her wallet. Make sure to do some research about upcoming sales so that you can save money.
Do I need to be aware of any scams?
Every type of lending has its scammers. If you’re looking for a loan online, pay very careful attention to the information you’re giving out and to whom it is going. There are plenty of businesses that will claim to be legitimate online lenders, but who will use your forms to gather information without actually giving you money. There are also some who claim that you need to make a deposit to get a loan. This should always be a red flag, as real lenders won’t require you to give them money ahead of a credit decision.
You can protect yourself from these scams by paying attention and reading reviews online. Always look up what others have to say about payday lenders before you sign any paperwork. While even great lenders will have complaints against them from disgruntled borrowers, you should be able to tell the difference between a legitimate lender and one who is trying to scam you.
What is holiday layaway and how does it work?
Layaway is an incredibly popular program used by a number of retailers during the holiday season. It might be best to think of the process as the reverse of a credit card. When you buy something on credit, you get access to the item now but pay it off over time. When you put something on holiday layaway, you’ll pay the money over time and receive the item when you are done. It is often one of the better ways to make big purchases over time, especially when you know that you’ll have the money, but you don’t want to wait until the last minute to make the purchase.
The problem with layaway, however, tends to be in how the payments are structured. Many programs require you to make a significant initial payment on the item followed by payments of a specified amount each month. If you’re unable to make those payments, you won’t be able to get the item. While you will get a refund on what you have already paid, this won’t help you while your funds are locked up in the layaway process. As such, layaway only really works when you’re willing to follow a specific schedule, and you don’t mind waiting on the item you want.
If you want your items faster, you might be better served by a payday loan. The loans will let you get the presents you need for Christmas.
Is it possible to get a loan for Christmas travel?
While a lender will likely want to know how you plan to spend your loan dollars, using the money on travel shouldn’t disqualify you for funding. If you want to take out money to travel for the holidays, a payday loan might be an option. It should be noted that most short-term Christmas loans do tend to be in smaller amounts, so the money you’ll be borrowing will typically be more along the lines of that used for a couple of plane tickets or a short vacation rather than what you might want to use for a trip around the world.
Exactly how you choose to use your money, though, is up to you. As we said, most lenders will want to know the reason for your loan. Simply telling the lender that you’re looking for money for the holidays may be enough information to go on. What the lender is primarily interested in is your ability to repay the loan.
The best way to use this kind of loan is when you know you can pay it back quickly. Choose a payday loan for travel to get tickets early or to take advantage of a discount. This will not only save you money in the long-term, but it will help you to make sure you can pay back your loan on time.
Why do some people say getting a holiday loan is a bad idea? Are they wrong about these loans?
There are always risks that come with borrowing money. It doesn’t matter if the money is gained through a payday loan website such us ourselves, or a traditional lender – you will have to pay interest. It’s fair to look critically at any kind of loan, as doing so will help you to understand whether or not the loan will work in your favor.
These short-term loans are most dangerous for the people who attempt to borrow beyond their means. It is up to you to figure out if you can afford a loan or not. If you falsify your records or you don’t have the money available to repay a loan, you may default on the loan, which can be very expensive. It’s not just the loan that is dangerous, then, but also the attitude of some who choose to take out a loan.
Always remember to take the loan process seriously. If you can pay back the loan on the terms to which you have agreed, then this type of funding should be financially prudent. Simply make sure to look at what you’ve promised to pay and your ability to make those payments, and then make the decision that is right for you.
Can I get same-day funding for a Christmas loan?
One of the best parts of getting a holiday loan is the speed with which they are issued. That being said, we do not think you will be able to find an online loan that funds on the same day that you request it. Businesses tend to take at least one business day to transfer the funds to your bank account successfully.
Most lenders will go above and beyond to get you your money quickly, especially around the holidays. These lenders understand why you need money and want to help you out.
Always make sure you talk to your lender to figure out how long it takes to get your money. Some will let you know not only the worst-case scenario for how long the money will take to get to your account, but also how long it typically takes customers to get their loans. You can use that information to determine whether or not you’ll get your loan as quickly as it is needed.