A loan before Christmas can easily turn into a nightmare for an entire year or even longer. Like last year, almost 15% of the population will borrow Christmas presents this year. The average amount of the loan is USD 10,000 and continues to grow year after year. How to borrow before Christmas not to burn and swindlers? We have prepared for you some tips and recommendations on how to spend Christmas – even after – in peace.
Bank loan before Christmas
Ordinary bank loans have relatively high credit limits – the smallest amount a bank usually offers is USD 20,000 and that is in most cases too much. So if you want to borrow money before Christmas and want to stay true to your bank, consider overdraft or credit card options.
Thanks to the interest-free period, you can borrow money without interest and usually with little credit card fees. Moreover, a loan from its own bank is the most sensible choice in terms of risk.
Non-bank loans not only for gifts
The offer of non-bank loans is traditionally rich, but only the small ones with reasonable interest are suitable for this purpose. In the hands of the responsible borrower, the most advantageous option in the non-banking sector is the use of interest-free loans for new clients.
If the payment is due in time, it will not pay anything extra – a similar principle as with a credit card. Unlike it, however, there are no management fees, etc. Under certain circumstances, it is a really advantageous product. In addition, there are several non-banking companies that offer their first free loan as a promotion, so there is plenty to choose from.
Offer the first free loan for new clients
Before looking at specific offers of interest-free non-bank loans, let’s talk about the main advantages and major disadvantages of interest-free loans:
- Quick application processing and money transfer (almost) immediately to your account
- There are no hidden settlement fees, no interest
- High fees and penalties for late repayment
- The offer is only for new clients at the company