Christmas Loans for Poor Credit

If you are facing some financial difficulties and wondering how to share the cheer this festive season, do not worry, as you can avail Christmas loans. Some even offer low-interest rates than they would normally charge for the same transaction any other time of the year.

Christmas sees a spike in expenses as you need to give out presents, invite people over for dinner, spend on decorations, etc. If you are having difficulty in supporting these expenses, you can take a loan to aid you. There are companies which offer personal loans without the need of a collateral, and the application process is also simpler. Let us take a look at the two most common types of personal loans.

Payday Loans
These are easy to avail, even with a bad credit history. A payday loan is given against your next pay check, so you will have to provide a proof of employment, address proof and your bank statements. They are mostly sanctioned within 24 hours and many companies even allow you to apply online without requiring you to fax any documents. The interest rate on this type of loan is around 15 - 30 percent and you can get a loan amount ranging from USD 100 to USD 1,500. Consumer credit counseling services, however, advise against taking payday loans unless you are sure to repay the loan with you next pay check.

Installment Loans
Another option for poor credit Christmas loans are the short-term installment loans which last for 4 - 6 months. Many people who need cash in an emergency opt for installment loans as they are easier to pay off than payday loans. The repayment is structured in way that you pay a low amount every month for a specified period of time to repay your loan. These personal loans are not for a specific purpose, you can use the amount for buying presents or throwing a party. To avail such a loan, you will require proof of income, last 3 - 6 months bank statements and a verifiable address proof. Many companies allow you to apply for such loans online as the loan amount is considerably less, loan amount can range between a hundred dollars to 2,500 dollars.

Local churches and charitable organizations also offer help to low-income families. It is wise to understand the terms of the contract while applying for a loan. The interest rate charged on such loans is generally high, especially if you are looking for an unsecured loan.