The holiday season is upon us! For many people, it’s their favorite time of the year. But for others, it can be a very stressful and trying time.
This is exactly why we want to help you decide if an installment loan for Christmas is a good idea…
The high costs of family gatherings, purchasing presents, food and drink, and celebrations can take a toll on even the most financially responsible people.
So how does the average American afford all of the costs associated with the holiday season? If you haven’t saved up for it, you may find yourself dipping into your emergency fund, or running out of money for your regular monthly bills and expenses. Unfortunately, this causes many people to consider taking out a personal loan to cover their costs.
But is this a wise choice? Should you take out a personal installment loan to help with all of your holiday expenses? CreditNinja wants to help you answer that question!
What Are Installment Loans?
A personal installment loan is a popular personal loan option for borrowers who need fast cash in a pinch. They’re considered personal loans because they’re meant to be used exclusively for personal expenses and purposes. And they’re installment loans because they require the borrower to pay monthly installments to repay the loan.
A personal installment loan is also considered to be an “unsecured loan.” This means that lenders won’t require borrowers to offer up any collateral to be approved for the loan. So how do you get approved?
Your credit and borrowing history will determine whether you’re approved. Lenders will likely review your credit score and your borrowing history to determine whether or not you’re likely to repay the loan in full. That being said, many installment lenders are willing to approve borrowers with less-than-perfect credit scores.
These loans act as an alternative to more expensive and risky short-term borrowing options like title loans or pawnshop loans.
How Do Installment Loans Work?
The process for applying and being approved for an installment loan is fairly straightforward. It will likely involve a few simple steps:
- Research plenty of lenders to find out which one you’d like to use. Compare interest rates, terms, and conditions, and read plenty of online reviews.
- Apply for the loan. Many lenders, like CreditNinja, offer an online application so you won’t have to worry about leaving your home to apply.
- You’ll get a decision from the lender, usually very quickly. They’ll let you know whether or not you’re approved, and if so how much money you get.
- They provide you with the money, usually by direct deposit, and you can then use it to pay for your personal expenses.
- Your repayment period will begin on the agreed-upon date. You’ll make monthly payments until your loan is completely paid off.
Should I Use an Installment Loan for Christmas Expenses?
So the question remains: is it a smart financial choice to take out a personal installment loan for Christmas expenses? The answer isn’t a simple yes or no since everyone’s situation is different. The best answer is: it depends.
Taking out any loan without being sure that you can repay it is a dangerous game. It could lead to possibly having to roll over the loan into a new term, additional fees and interest, and if you can’t repay the loan over time it could lead to the lender sending it to a collection agency.
There is a simple rule of thumb for taking out a personal installment loan for holiday expenses or anything else that isn’t 100% necessary: if you have a clear plan to pay it off, and you know for certain that you’ll be able to repay it, then there’s not as much risk.
Can CreditNinja Help With an Installment Loan for Christmas?
CreditNinja is here to help with all of your personal installment loan needs. Whether you need a loan to cover your bills during the holidays, or you need to repair your vehicle, CreditNinja is here to help you. Our loans help borrowers who need quick cash but want to avoid predatory lenders.
Our application process is quick and easy. In fact, taking out a CreditNinja loan means never having to leave the comfort of your home to go into a storefront or bank. The application, funding process, and repayment is all online.