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Compare personal loans for Christmas

Holiday expenses can add up fast. Here’s how to get a Christmas loan to ease the financial pressure.

Using savings is the best way to cover Christmas expenses, but for some, this may not be an option. If need to get a loan for the holiday, explore your options here and learn about key factors to consider before you sign a contract.
Name Product Interest Rate Loan Amount Loan Term Requirements Link
Spring Financial Personal Loan
Finder Rating: 4 / 5: ★★★★★
Spring Financial Personal Loan
17.99% - 46.96%
$500 - $15,000
9 - 48 months
Requirements: min. income $1,800/month, 3+ months employed, min. credit score 500
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If you're not eligible for an unsecured loan, you may be offered a credit builder loan to help improve your credit score.
LoanConnect Personal Loan
LoanConnect Personal Loan
Secured from 1.90%, Unsecured from 5.75%-46.96%
$500 - $50,000
3 - 120 months
Requirements: currents debts total less than 60% of income, min. credit score 300
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Fill out one application with this broker and get pre-approved by different lenders in 5 minutes.
Mogo Personal Loan
Finder Rating: 4.5 / 5: ★★★★★
OFFER
Mogo Personal Loan
9.90% - 46.96%
$200 - $35,000
6 - 60 months
Requirements: min. income $13,000/year, min. credit score 500
100-day money-back guarantee. If you're not happy with your loan, pay back the principal and get your 100 days of paid interest and fees back.
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Get a free quote without affecting your credit score and get a loan on the same day. Track your credit score for free.
goPeer Personal Loan
Finder Rating: 3.6 / 5: ★★★★★
goPeer Personal Loan
8.00% - 33.92%
$1,000 - $25,000
36 - 60 months
Requirements: recommended income $40,000/year, no payday loan debt, min. credit score 600
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Connects creditworthy Canadians looking for a loan with Canadians looking to invest. Apply in minutes and get a response within 24 hours.
SkyCap Financial Personal Loan
Finder Rating: 4.1 / 5: ★★★★★
SkyCap Financial Personal Loan
12.99% - 39.99%
$500 - $10,000
9 - 36 months
Requirements: min. income $1,200/month, stable employment, min. credit score 550
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Apply in less than 5 minutes and if approved, receive financing in as little as 24 hours.
Fairstone Unsecured Personal Loan
Finder Rating: 3.9 / 5: ★★★★★
Fairstone Unsecured Personal Loan
26.99% - 39.99%
$500 - $25,000
6 - 60 months
Requirements: able to make monthly repayments, min. credit score 560
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Get a free quote without impacting your credit score. Receive funds within as little as 24 hours. No prepayment fees.
ConsumerCapital Personal Loan
Finder Rating: 3.2 / 5: ★★★★★
ConsumerCapital Personal Loan
19.99% - 34.99%
$1,500 - $12,500
24 - 60 months
Requirements: min. income $1,900/month, 6+ months employed, no payday loan debt, min. credit score 600
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Complete an application in less than 10 minutes and get a decision within 24 hours.
Loans Canada Personal Loan
Loans Canada Personal Loan
Secured from 2.00%, Unsecured from 8.00% to 46.96%
$300 - $50,000
3 - 60 months
Requirements: min. credit score 300
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A broker with the largest lender network in Canada. Fill out one application and get matched for free with lenders.
FlexMoney Personal Loan
Finder Rating: 4 / 5: ★★★★★
FlexMoney Personal Loan
18.90% - 46.93%
$500 - $15,000
6 - 60 months
Requirements: min. income $2,000/month, 3+ months employed, min. credit score 500
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Apply in less than 10 minutes and if approved, receive financing in as little as 24 hours. Pay off your loan any time without penalty.
Loan Away Personal Loan
Finder Rating: 3.6 / 5: ★★★★★
Loan Away Personal Loan
19.90% - 45.90%
$1,000 - $5,000
6 - 36 months
Requirements: min. credit score 300
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A lender that approves loans in as little as 20 minutes. Get affordable monthly repayments with any credit score.
Fairstone Secured Personal Loan
Finder Rating: 3.7 / 5: ★★★★★
SECURED
Fairstone Secured Personal Loan
19.99% - 23.99%
$5,000 - $50,000
60 - 120 months
Requirements: must be a homeowner, min. credit score 560
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Use your home equity to get a secured loan with flexible repayment options. Get a free quote without impacting your credit score.
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From the Christmas presents to the parties and socializing, the holiday season can put a big strain on your budget. If you’re thinking about taking out a Christmas loan, here’s what you need to know about holiday loans, and how you can manage your debt during Christmas.

What is a Christmas loan?

Christmas loans are personal loans designed to help Canadians who need the extra cash to pay for expenses over the holiday season.

They function just like personal loans do. You can customize your loan with your lender, keeping these factors in mind:

  • How much you need to borrow.
  • Your terms (or how long you’ll need to repay your loan).
  • Your interest rate and fees.

With Christmas loans, once you’ve been approved and signed off on your loan contract, you’ll receive a lump-sum amount transferred directly to your bank account. You can use the funds to help pay for all of your Christmas expenses.

Should I get a loan for Christmas?

Taking on more debt is a decision that shouldn’t be taken lightly, especially if it’s for discretionary spending. If you’re considering applying for a Christmas loan, here are the key questions you ought to ask yourself first:

  • What do I need these funds for? Some may need a small Christmas loan to extend their budget for holiday essentials. Steer away from shouldering more debt if you’re using the funds to spend more than you need to.
  • How much do I need to borrow? Create your holiday shopping list, and determine how much financing you need to cover holiday expenses.
  • How will I pay this loan back? Before you agree to taking on more debt, do the math to ensure that your post-Christmas budget has the flexibility to keep up with repayments on your Christmas loan.
  • Can I qualify for reasonable terms and interest rates? If your credit is in bad shape, you may not be able to take out a Christmas loan without sky-high interest rates and fees.

How to find the best loans for Christmas

Holiday loans can come in all shapes and sizes. Finding the best Christmas loan to suit your needs will depend on a variety of factors, including the following:

  • Interest rates. Compare lenders to figure out which one is offering you the lowest interest rate on your Christmas loan. Compare personal loan interest rates in Canada.
  • Loan amount. Some lenders will only offer $500 as a minimum loan amount, which may be too much debt to incur. Look for a lender that offers the loan amounts that meet your financing needs.
  • Fees. Some Christmas loans come with set-up fees and other charges. Make sure to discuss applicable fees with your lender and find out what services you might have to pay extra for.
  • Loan term. Loan terms typically range from 6 months to 5 years. Aim to have your holiday loan for the least amount of time possible with repayments that you can afford since the longer you have your loan, the more you’ll pay in interest.
  • Processing time. With the holidays just around the corner, search for a loan provider that offers a turnaround time that matches your time frame.

Best personal loans in Canada

Christmas loans for poor credit

If you have bad credit, there are lenders that will work with you as long as you demonstrate you have the ability to repay the loan. Before you apply, consider whether you should take on more debt if your credit score isn’t in great shape. Explore ways to reduce your Christmas spending first.

If you’re certain you can manage the extra debt and you’re set on a bad credit holiday loan, here’s what you should know before applying:

  • High interest rates. Borrowers with bad credit will encounter interest rates that could go as high as 47%. Before taking out a Christmas loan, know how much you’ll pay in monthly repayments and for how long.
  • Compare lenders and check eligibility requirements. Look for Christmas loan providers with a minimum credit score requirement that’s lower than your score. Compare options using factors like loan amounts, terms, interest rates and fees.
  • Apply to your top choices for pre-approval. Fill out applications to the lenders you fit the eligibility criteria for. Pre-qualifying for a bad credit Christmas loan gives you an estimate of the interest rate and terms you might be eligible for.

Best personal loans for bad credit

Pros and cons of Christmas loans

Christmas loans, like all types of financing, come with their share of pros and cons that are important to take stock of:

Pros of Christmas loans

  • They help you afford the holiday season. Christmas time comes with a price tag that some people don’t have the cash flow to afford. A holiday loan removes the financial stress of wondering how you’ll pay for everything you need to get through December.
  • They’re quick and convenient. Holiday loans are designed to be easy to apply for and accessible to borrowers with all types of credit. Most online lenders can approve and fund your loan within 1 to 2 business days at most.
  • They’re an opportunity to build credit. If they’re managed right and paid off on time, holiday loans are a golden opportunity to improve your credit situation.

Cons of Christmas loans

  • They come with interest charges and fees. Not only will you have to repay what you’ve borrowed, but you’ll also need to cover the interest you’ve incurred on your loan, driving up the true cost of your holiday spending.
  • They put you further in debt. A Christmas loan is another debt repayment you’ll need to manage moving forward. If you don’t have a repayment strategy, it could be the catalyst for making your financial situation worse.
  • They may affect your credit. If you make a late or missed payment on your loan, your credit score will take a hit. If you’re in a precarious position with your credit, another loan may be a risky idea.

Other ways to finance your Christmas expenses

Holiday loans aren’t the only way to bring Christmas to life. There are other common ways you can pay for holiday expenses, including the following:

  • Credit cards. If your current credit card has a lower APR than the Christmas loan you’re being offered, use it instead to cover Christmas expenses.
  • Line of credit. Rely on your line of credit to withdraw funds whenever you need to, including for holiday expenses. Interest rates are only charged on what you actually borrow, not on the entire credit limit.
  • Borrow from relatives. If you need a small sum of money to tide you over for the holidays, you could seek out financial assistance from family and friends. You won’t have to jump through the same financial hoops to secure a loan.

Watch out for payday loans

Payday loans are a quick way to access cash, but borrowers should avoid using them for holiday expenses. Here’s what you should be wary of before taking out a payday loan:

  • Short repayment terms. Payday loans come with terms that cap out at 62 days, but most lenders expect you to repay your loan by your next payday.
  • Incredibly steep interest rates. Payday lenders can charge anywhere from $15 to $25 per $100 borrowed, depending on the province you live in. That’s an annual percentage rate (APR) of 400% or more.
  • Cycle of debt. With steep interest rates and penalties for not repaying your loan on time, payday loans can trigger a snowball of debt.

How to manage your debt during Christmas

Here’s how to avoid slipping up on managing your debts during the most expensive few weeks of the year:

  • Get organized with your existing debts. Write down each debt that needs to be paid in December and January, how much you need to pay for each account and mark due dates on your calendar. The last thing you want is a late or missed payment hurting your credit score.
  • Create a holiday budget. Create a budget for all of your regular expenses and your holiday expenses. Get specific, too: determine how many presents you need to buy and how much you can afford to spend on each gift.
  • Take advantage of skip-a-payment incentives. Some lenders allow you to skip a payment or delay a payment once a year if your account is in good standing. If you have loans that come with this perk, it may be worthwhile to put it to use in December.
  • Automate it. Because the holidays are such a hectic time juggling work, family time and social gatherings, you may accidentally miss a due date. Avoid this altogether by automating loan repayments.

Tips to reduce your holiday spending

Here are some tips to get you through the holidays without breaking the bank:

  1. Stick to your budget. While it may be tempting to pick up extra gifts or splurge on a Christmas feast, spend within the parameters you’ve set in your budget. Your budget will act as a guide so you don’t end up further in the red than you anticipated.
  2. Use gift cards and rewards points strategically. Put last year’s gift cards and store rewards points you’ve stockpiled to good use. You could trade credit card rewards points for gadgets, gift cards and gas and hotel accommodations.
  3. Take advantage of sales. In the lead up to Christmas, you can count on deep discounts at your favourite stores. Always comparison shop so you know you’re getting the best deal for the gifts you’re buying. Browse shopping deals.
  4. Save year round. Set up a Christmas fund, and put away $20 to $50 each month. By next December, you could have $240 to $600 to cover all of your holiday expenses.
  5. Get creative with gifts. Learn to make thoughtful homemade presents. You could bake Christmas cookie boxes, knit scarves or task your kids with making Christmas cards and finger-painted wrapping paper.

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