From booking the most anticipated Christmas trip to decorating your home for celebrations, costs may add up quickly. One can feel the discomfort that occasion brings from the financial perspective. Individuals slash budgets and stick to minimal spending until Christmas. It helps them save for the occasion preparations.
However, in the economic frame, it becomes impossible to dedicate a part of income towards critical occasion needs.
Would you love to compromise on something that you have waited long?
Of course not. Neither do you have to. Yes, with Christmas loans, you can finance your preparations without worrying about the budget or living below the means. Precisely, it helps you finance the requirement without skipping on critical utilities and consumption. You can finance the requirements according to your loan affordability.
Many individuals use the facility for short- and medium-term requirements, and so can you. However, you must meet the required criteria to get one.
Best ways to get Christmas loans in the first attempt
Christmas loans are secured and unsecured ways to finance your requirements. You can get up to £1000 according to your credibility, finances and requirements. The interest rates stay fixed, and thus, you can budget for the repayments easily.
Furthermore, you can use the loan for purposes like – updating the home, lighting, tackling emergencies, buying new apparel, planning gifts and even financing a Christmas trip.
That was a brief about Christmas loans. Now, let’s explore the best ways to get Christmas loans in the first attempt:
1) Identify your purpose and cash requirement
Before tapping any loan, you must know the reason to get one. It is vital as borrowing for unimportant tasks is not a sane deal. Instead, prioritise borrowing cash only if you cannot finance the need.
For example, you need money to repair the bathroom walls but lack enough savings to support the costs. In that case, you can use the loan to repair the wall. Otherwise, it may damage it further, leading to more expense.
2) Identify the exact amount you need
When you know the purpose, calculate how much you would need to finance the need. Individuals who share limited knowledge about loans end up borrowing higher amounts than required. It leads to additional costs and payments. Thus, improvise and borrow only the amount you need. You can calculate the amount by:
- Checking how much you can get from savings
- Can your loved one help?
- Average costs of the purpose you want the loan for
These aspects may help you borrow the right amount.
3) Explore the APR and other costs
The APR on secured and unsecured loans may vary. Thus, first, decide the type of loan you want. Secondly, explore the quotes by Googling the affordable Christmas loans in the UK marketplace. You can spot multiple loan providers with different APR and interest costs. Check the affordability with pre-qualification.
Yes, you can use the calculator and pre-qualifying process to know whether you can afford the loan. If not, you can switch on to the next best deal. Besides that, pre-qualification does not affect your credit score. Alternatively, it also does not guarantee loan approval. It only helps you know about the affordability and expected rates.
Choose a loan with verified terms, no additional costs and low APR rates. It is the definition of an affordable Christmas loan. If confused, ask the provider about hidden costs or terms.
4) Check for pre-payment penalties and closing fees
It is one term that you must not skip while reading the agreement. A pre-payment penalty implies you must pay extra to clear the dues before the actual payment date. It may impact your credit score drastically.
Usually, lenders do not charge one on short or medium-term loans, but you must check it once. Apart from that, check and compare the closing fees. It could prove the most expensive if ignored. If you find it bearable and better than competitors, then you may proceed. Fill up the form with authentic information. Check spelling and other errors before applying.
5) Choose a comfortable repayment tenure
It is again one of the most important aspects of filing a loan. Lenders are flexible on the repayment terms. You can select the term suitable as per your finances. Determine your monthly liabilities and the money you can pay the loan in instalments.
However, be smart when choosing the repayment period, as the longer term attracts the most interest costs. If you can comfortably pay within 6 months, do not extend the agreement to 9 months unnecessarily. It may prove unhealthy for your credit score and vice versa. Neither choose a much shorter nor longer term, but keep it comfortable.
6) Analyse late fees and possible solutions
Next, analyse the missed payment fee or penalty on every payment you skip. Analyse how it will change the whole agreement. It is most important with a secured Christmas loan. It is where you may lose the asset if you enter default.
Alternatively, in unsecured loans, the overall amount may be high. It may impact the credit score. Identify the solutions to late payments. Check whether you can get forbearance until the finances improve. Discuss the solutions with your lender to avoid surprises later.
Moreover, if you only need a small lump sum to clear the dues, but your credit score does not support it, check loans for bad credit with no guarantor facility. You can use it to pay the debt on the very date by paying the remaining amount. In this way, you can avoid hefty penalties. However, you must pay this short-term loan timely manner. Well, you can do so without bothering someone else to cover your payments. What could be better than that?
7) Provide your final approval of an agreement
Once you enquire about everything related to the loan, provide your approval. You will receive an email regarding the loan. You will find the loan agreement attachment. You can provide consent to the terms and conditions by signing that agreement. Moreover, attach copies of the documents ( if asked) with the agreement. After that, mail the signed agreement to the lender. You are done!
Now, you need to make timely repayments on the Christmas loans.
If you face any glitches or issues while on loan repayment terms, contact the lender immediately. He will help you take the best possible initiative.
Bottom line
So, this is how you can qualify for the Christmas loan easily. Getting the loan is easy if you have the documents and meet the required criteria. Keep documents handy before applying for a loan. It would help you proceed quickly with no delay. Moreover, analyse the terms carefully before providing your consent to the agreement.
Jessica Rodz is the Senior Content Writer at Cashfacts. She has a long career in the field of content writing and editing. Jessica has the expertise in the UK lending marketplace where she has worked with 7 different lending organisations and acquired many responsibilities from preparing loan deals and writing blogs for their websites.
At Cashfacts, Jessica is managing a team of experienced loan experts and doing a major contribution in guiding the loan seekers via well-researched blogs. She has done graduation in Business (Finance) and now currently doing research papers on the UK financial sector.
