Christmas is coming and it’s the time of the year when your shopping bills quickly add up. It’s understandable that many British families now turn to a Christmas loan for help. They can ease the financial burden by being able to buy your family everything they want over the holidays. However, there’s a lot of different lenders out there and finding a Christmas loan that suits your financial needs can be difficult.
That’s why, in this article, the Oyster Loan team will explain what a Christmas loan is, who can get them, and how you can find the right Christmas loan for you.
What are Christmas Loans?
Christmas loans provide families with the cash they need to be able to meet the costs of Christmas. If your Christmas shopping needs to be done soon and you don’t currently have the money to do it, then a Christmas loan is the best option for you.
The festive season is one of those times where just having the breathing room to pay for the presents, the food, the travel, and everything else associated with Christmas would just make life easier. And that’s what Christmas loans are for.
Do You Need a Good Credit Score for a Christmas Loan?
No. A lot of people get confused and worried about credit scores so here’s what we think you need to know.
Every loan company has a set of criteria for the people they like lending money to and about borrowers’ financial circumstances. When you apply for a loan, lenders look at two things – your circumstances now and your circumstances in the past.
For your circumstances now, they consider the information you provide them with your application form. That includes how much you earn, who you work for, how long you’ve been with your employer, how much you spend each month, and so on.
Lenders use a credit report to consider other aspects of how you are doing today financially. They look at any credit cards, loans, and overdrafts you currently have, how well you’re servicing those accounts, how many times you’ve applied for credit lately, and whether you’re paying your bills on time.
They use the same credit report to look at your last 6 years’ financial history. What they’re looking for is to see the number of times you’ve missed repayments to creditors and other companies, whether you have any County Court Judgements, and more.
They bundle up all of this information and check it against their “borrower profile”. If you’re close to their borrower profile, you’ve got a great chance of getting a Christmas loan. If you’re far away from it, your chances may not be as good.
There are thousands of lenders in the UK and they all have different borrower profiles – different types of people they like to lend to. While people with good credit ratings will have more companies, which are happy to lend to them, there is still a wide range of lenders willing to work with borrowers whose profiles are not as perfect.
Can you Get Christmas Loans Without a Guarantor?
Some lenders insist that you have a guarantor when you take out a Christmas loan with them. A guarantor is somebody (usually a family member or a close friend) who will pay off the loan for you in the event that you are unable to make the repayments yourself.
However, there are many problems associated with having a guarantor for your loans. This is why we help you find loans where you do not need to find a guarantor. Many lenders will happily lend you money, even if you don’t have a guarantor.
How Long Does it Take to Get a Christmas Loan?
If your application is approved, then you will receive the loan amount in your bank account.
If you’re looking for a Christmas loan, it normally only takes one day.
How Much Money can you Get with a Christmas Loan?
For Christmas loans, you can borrow anything from £50 to £5,000 with some lenders.
It is worth mentioning that each lender will only lend up to a maximum amount based upon their “borrowing rules”.
For example, if it is your first loan with a particular loan provider, they might only allow you to borrow £200 over 3 months. Whereas, if you have a good credit history and you have taken out and repaid a loan from that provider before, then you might be able to borrow £1,500 over a period of 10 months.
How Long do you Have to Pay off a Christmas Loan?
Every lender has different criteria. Because Christmas loans are a form of a short-term loan, the vast majority of loans will be under 12 months long. Some lenders may extend this offer but it isn’t the industry standard.
You can get Christmas loans in the form of a payday loan. This is where you take out a loan and repay it on your next payday. This is also a useful option when it comes to the festive season, particularly for smaller loans.
A lot of people feel real financial pressure during the build-up to Christmas so being able to make up for that over January and February can help ease the stress.
Find your Christmas Loan with Oyster Loan
Where do you start finding a Christmas loan? There are two places you can look to – a lender or a broker.
With a direct lender, you borrow money from that company and pay them back. With a broker, like Oyster Loan, we scour the market for the best deal available for you specifically. We match you up with different lenders and then show you the cheapest loan offer we’ve found. You then choose whether you want to borrow money from the lender, we recommend – it’s that simple and it all happens in seconds.
Why choose a broker like Oyster Loan over a direct lender?
- We can scour the market for the best deals in a fraction of second
- When you fill in your application form, we match you with the most suitable and likely lenders. You only have to fill in one application form to be considered by dozens of lenders
- We only run one credit report. Every time you make a full application for a loan, a trace is left on your credit report. The more recent searches you have, the less likely you are to be accepted for a loan.
Our service is free and there’s no obligation at all on you to accept the offer we find for you. To start finding the right Christmas loan for you, please click here.