While looking for the best presents this holiday season, you may find your inbox filled with ads for “Christmas loans for bad credit” offering quick and easy money. Should you trust them? In most cases, you shouldn’t. Otherwise, you may end up with a hole in your wallet just after the Christmas tree has been sent for recycling.
Most reliable and trustworthy funding companies like Instant Сash Advance don’t use dirty marketing tricks. They prefer classic advertisements without attacking potential customers over the phone, via email, or through massages. Most doubtful funding companies do the opposite. Here’s why you should avoid Christmas loans for bad credit and good credit holders.
How much do you consider spending this holiday season? It might be less than the national average, if you have to borrow money from someone.
Christmas loans usually look like standard payday loans, which might feature high service fees and even higher interest rates. Let’s say, a $1,000 payday loan might come up with a $100 interest rate, which means an annual percentage rate of 260%.
When you borrow this type of funds, you should have a bank account and stable income for successful qualification. They usually have short payback periods due to small amounts given out to Americans. By the due date, funders have the right to take a credit check or access your bank account to collect payment in accordance with the repayment scheme. If you don’t have sufficient funds there, you will face overdraft fees.
In fact, well-reputed and ell-trusted funding companies check your credit background to gauge how well you’ve handled the debt in the past. They also charge APRs below 35%, which happens to be the limit for an affordable loan.
Online services that promote advertise Christmas loans for bad credit don’t always issue the loans themselves. Even if they serve as aggregators, they collect consumers’ personal data, without complete disclosure. How safe is it for potential borrowers? This is a question known that could be answered by private funders only.
You may think you’re applying to just one funder when you fill out an online application at one of these sites. But your data is actually delivered to multiple funders. That may lead to unwanted marketing emails or calls from companies you don’t know about.
Less toxic borrowing options, such as personal loans from banks, credit unions and reputable online funders, may come with upfront fees and long payback timeframes. Apart from interest, you might have to pay an origination fee of 2% – 5% of the taken amount of money.
Loan policies usually cover the period of 2-5 years, depending on the amount you borrow and your credit background. If you manage to pay everything back in advance, you are lucky. If you fail to pay everything back on time, you are in trouble. Be ready for penalties that might be extremely painful.
Instead of buying presents from Christmas wish lists, you should give a special activity that you can do at the minimum cost. You know your relatives and friends. Think of what they like, what they want, or what they need. You may find something that doesn’t cost a lot but will definitely make the people you love happy. You know that it’s not the price of a gift that matters. Attention is the most precious gift of all.
If you’re interested in buying gifts, try to start doing it in advance. Then you have better chances of finding something nice at an affordable price. You may even find some good discounts, promos, as well as cash-back offers. Some credit cards also offer instant cash loans online same day and immediately shopping rewards on holiday gifts (payday loans).
You can save or even build your credit rating by claiming Christmas loans for bad credit holders. You “borrow” money from Instantcashtime.com or other funding company that puts your monthly repayments into a savings account.
With the right funding company, you might get the required sum of money under absolutely normal conditions. Even in this case, you put yourself under strict obligations. Once agreed, you won’t be able to change something.
If you don’t want to experience stress, you should try out some alternative options. Why not refer to your family and friends? How about asking your employer for financial help? They might help you with your financial emergencies just before Christmas comes. At least, you might be able to avoid drastic service charges and high interest rates. It doesn’t seem to be a bad idea at all.
But if you decide to take out money from the funding company, make sure that you take as much as you need for a particular purchase. Also, make sure that you take as much as you can afford paying back. Don’t ruin your Christmas with unbearable financial obligations. They will make your life more stressful until you pay everything back.
