Nearly 80% of Americans stress out about overspending for Christmas or the holidays, according to a 2018 Credit Karma survey — and there are lenders that market loans for the holidays specifically for that spending.
If you haven’t saved — or haven’t been able to save — for the holiday spending you want to do, and you’re thinking about taking out a Christmas loan, here are some important things to consider, and some other options to look at.
If you’re set on borrowing for the holidays, here are a few things to consider.
Planning ahead for the holidays and budgeting for your expenses is the best way to enjoy the season while avoiding a holiday financial hangover. But that’s not always possible — life happens, and sometimes basic necessities cut into our holiday budgets.
While a Christmas loan may allow you to spoil your family, it’s financially healthier to budget and set money aside for holiday expenses if you can. Start today by stashing some holiday cash in a designated savings account. You may even enjoy the holidays a lot more knowing that you can ring in the new year without added debt.
Chances are, you don’t have time to sit around and wait for an application to clear when you need a cash advance. Look for a provider that gets you your money fast. See USACashMoney signup forms here.
You also may not have time to run to the bank to deposit cash. Look for a cash advance service that deposits your money directly into your checking account.
High interest rates can seriously affect your ability to pay back your cash advance. Save money by looking for a provider that offers a reasonable APR. Do the math and figure out how much you’ll end up paying after two weeks on the amount of money you need.
Some cash advance services even offer 0% APRs, likeUSACashMoney Instacash advances, so don’t be afraid to shop around before you choose a cash advance service.
Just like your APR, advance fees can make your loan much costlier. Ask your advance provider about fees and look for a provider who only charges a small fee — or better yet, no fee at all.
One of the benefits of a cash advance is that it won’t impact your credit if you pay it back on time. Avoid banks that require a hard check on your credit. Every time a company pulls your credit report, your score lowers — so protect yourself by choosing a bank that doesn’t mess with your credit score.