Borrowing money for Christmas – Compare fast loans and read our loan guide
Christmas is a time of generosity and giving back to those we love. It is also the time of year when most fast loans are taken out. No wonder, given that Christmas brings with it a lot of costs – everything from Christmas food to Christmas presents to be purchased. With the leave also comes a desire to find things, not to mention the New Year celebration to be financed.
For those who need to borrow money for Christmas , here is the complete loan guide.
Borrow money for Christmas with a quick loan
Although we are reminded every year that December is an expensive month, it is quickly forgotten again in February when the focus with the savings instead ends up on the upcoming holiday. If the autumn also brought unexpected costs, you may have already had to use up your savings. A quick loan can then be used as a temporary solution to get extra money for Christmas.
What the loan will be used for is entirely up to you. For example, you can:
- Borrow Money for Christmas Gifts – Make someone close to you happy, whether it’s a tablet or set of Lego.
- Borrowing money for Christmas food – With many mouths to saturate, the Christmas table can become an expensive story.
- Borrowing money for sudden expenses – It is usually when we have the least time or advice that the accident has occurred.
- Borrowing money for the Christmas holidays – Take the opportunity to find things together during the holidays.
- Borrowing money for the New Year celebration – A nice dinner and a little bubble to celebrate the New Year.
Quick loans usually refer to a smaller amount of money. Usually it is only a few thousand dollars, but some lenders lend out as much as $ 50,000 in quick loans. As the name reveals, it is quick to get the money paid, which can be advantageous when the days quickly tick down towards Christmas Eve. An extra thousand in the wallet can then make a big difference.
Another feature that is characteristic of fast loans is the short term. Usually the loan is repaid within a few months. Of course, you can choose a longer maturity than that, sometimes as much as one or two years. However, since the interest rate on quick loans is high, you should always strive to repay the loan as soon as possible. For each month that passes, your interest costs increase.
When deciding how much to borrow, you should put your borrowing needs in relation to how much money you will receive over future salaries. A good benchmark is to not borrow more money for Christmas than you can repay by March. The loan does not then have to be very expensive. However, in order for this to be true, repayments must be maintained and the loan not extended.
How do I borrow money for Christmas?
The application process for borrowing money for Christmas is usually very simple. Cuddle up on the couch with some Christmas music in the background and then browse the creditor’s website. You can use the device you have at your fingertips, be it your mobile, tablet or computer. Once on the website you enter how much you want to borrow and how long the repayment period you want.
After you sign your application with BankID, it is up to the lender to make an assessment as to whether or not you should be granted the loan. You will usually receive a message within a few hours via text message or email. Between your application and the message, the lender requests a credit report on you, which then forms the basis for the decision and the loan terms offered.
If you have good ability to pay, a fixed income and meet the lender’s other conditions, there should be no problem getting help with money for Christmas. Other conditions usually mean that you must be at least 18 or 20 years old and be debt free at Kronofogden. However, each lender has their terms so double check that you meet all of them before applying.
When you are borrowing money for Christmas, it is generally easier to get a quick loan granted, than it is if you are applying for a larger loan. A smaller loan entails a lesser risk for the lender, who is then more willing to lend the money, but at a higher interest rate.
Borrow money for Christmas with payment note
In order to get a quick loan granted, payment remarks need not be an obstacle. There are several players in the market who approve of complaints and who, when assessing, focus on future ability to pay instead of past mismanagement. In other words, as long as you have a fixed monthly income, you can borrow money for Christmas.
However, it should be said that the lender will see an increased risk of lending money to someone who has previously neglected their payments. Therefore, you need to be prepared to pay more for your loan in the form of a risk premium that is intended to offset the increased risk. Think about whether it’s worth the extra cost of borrowing money for Christmas.
Before you apply – Compare creditors
It’s easy to go to Google, search for “quick loans” and choose the first best lender from the list. However, it can make a big difference to how much you ultimately have to pay to borrow money for Christmas if you take the time to compare different options.
A good way to get a clear picture of the alternatives is to use a comparison service. Here at Tituba you can compare over 30 different lenders. You can see what the various players have for interest rate spreads, any fees, how large or small loans they approve and with what maturity. Then you choose to apply to lenders that fit your specific loan needs.
When do I get my extra money for Christmas?
All lenders strive for you to have the money in your account as soon as possible. Usually you have the money within 24 hours, sometimes faster than that. It depends on the lender’s opening hours and the bank you use yourself. If you have an account with one of the major banks and get your application approved within the operator’s opening hours, you can have your extra money for Christmas within an hour.
Before and after Christmas, all lenders are open just as usual. During the weekends and holidays, such as Christmas Eve and New Year’s Eve, opening hours may vary. Many lenders are closed these days, but in cases of urgent need you can find players who are open even then. You can always apply for a loan, regardless of opening hours, but it can take longer before you get the money.
What does it cost to borrow money for Christmas?
Another term for fast loans is high cost credit. It comes from the fact that in many cases the effective interest rate is very high. Effective interest rate refers to the total cost of the loan, which includes both interest rate and setup and newspaper fees.
In other words, a quick loan is expensive, but it is also the form of loan that means that you get the money paid out in a very short time. In order to keep costs down and avoid paying more than you have to, when applying, you should choose the shortest possible term and be sure to pay back on time. The interest rate on quick loans is often very high.
It is also not a good idea to extend the repayment period on fast loans as this can lead to you having to pay expensive fees. Therefore, make a realistic assessment of how much you can manage to pay the months after the turn of the year when you decide how much to borrow and when the loan should be repaid. A short term is good, but it must be doable.
Again, we want to emphasize the importance of comparing lenders to keep down borrowing costs when borrowing money for Christmas. There are lots of players in the market who are willing to help you by borrowing money for Christmas presents, Christmas food or whatever you need. However, the service is not free and how much the loan costs you and the terms given can look different.
Borrow money for Christmas without UC
Many credit companies that issue fast loans make use of credit information companies other than UC. Whether they do it or not usually appears on the company’s website. In our comparison service you can filter the list of lenders who do not use UC.
The advantage of borrowing money for Christmas without UC is that your loan application will not be visible on future credit information made through UC. If you are planning to apply for a larger loan in the near future, perhaps a mortgage or similar, a quick loan may be negative for your chances of being granted the loan. It may then be a good idea to apply without a UC.
However, you should not use an alternative information company just to hide the fact that you already have many debts and thus to lend over your ability to pay. Keep in mind that the loan must be repaid and every time the repayment is postponed or delayed there are expensive fees that make it even more difficult for you to become debt free.
If you have growing debts and want to borrow additional money for Christmas, we recommend that you refrain. Take the help of the municipality’s debt counselor and set up a plan for how you can become debt free. Let it be the family Christmas present this year instead.
Borrow money free of interest for Christmas
As a result of a more competitive market, some lenders offer interest-free quick loans as a way to attract new customers. This means that you can borrow money for Christmas without paying any interest and often no other fees are added. The only thing you need is that you pay back the money you borrowed on the agreed date.
It may sound too good to be true, but if you have control over the terms that apply to the specific lender and follow these to the point and dot, you can get away with an interest-free loan very cheaply. The lender’s hope is that you will continue to lend to them in the future and are therefore willing to claim no interest on the first loan.
However, if you do not pay back on time, the interest-free loan can instead become a very expensive story. As soon as you choose to extend the repayment period, the lender will start charging interest and other fees as you have passed the interest-free period. The lender may also claim interest for the period that was previously interest-free.
Before applying for an interest-free loan, you should therefore keep a close eye on the loan terms you approve by signing the agreement. Are there any hidden fees and what are the costs if the loan is not paid on time? Above all, you should make sure that you really can afford to repay the loan within the free period covered by the loan.
Apply for an account credit before Christmas
Another option when you quickly need extra money for Christmas is to have an account credit ready. It is an account with an approved credit of a certain amount that you can quickly request and use as needed, much like a credit card.
You then apply for a certain amount of money and once these have been approved, they are in an account as a kind of “resting credit”. You can then use the credit if the money is not enough during the Christmas shopping. You pay nothing for this money when they are in the account, but you only pay for what you use, when you use it. However, fees may apply for withdrawals.
With an account credit, you just pick out what you actually need. This means that you do not need to know in advance how much you will need. You also do not have to apply for a new loan every time you need help with money for Christmas.