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Christmas Loans: Everything You Need To Know

Written by Jessica Steer
For many Canadians, Christmas means snow, twinkling lights, tasty feasts, presents, and spending time with friends and family. But unfortunately for some, alongside the festive cheer, there’s also financial stress. Between gifts, travel, decorations, mulled wine, and big festive dinners, it’s safe to say that the holiday season can put a strain on your wallet.
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    The average Canadian spends approximately $1700 on the holiday season. Many put holiday spending on their most convenient form of credit — their credit card. But is this the best option?

    Kicking off the new year with a maxed-out credit card is not ideal. You don't want to carry too much credit card debt from one month to the next. Because credit card debt is revolving, there is no obligation to pay off the balance in full. It sounds good, but it means you will pay interest every day on the month-to-month balance you carry over.

    Have you considered applying for a personal loan to help with holiday bills? Applying for an unsecured loan might be the best option for people who struggle with credit card debt or don't want to get caught in a vicious cycle of payday loan debt.

    If you want to borrow money to pay for Christmas, financing the holiday season with a personal loan is a good solution, but there are others too. In this article, we’ll explore what a Xmas loan is, its pros and cons, as well as alternatives to help you get through the holiday season with your personal finances intact, avoiding a post-holiday financial hangover.

    How to get a loan for Christmas

    Christmas loans can come with a few possibilities, but they are exactly what they sound like; a personal cash loan to cover holiday expenses.

    Do a quick search online, and you’ll find that most lenders specifically advertising Christmas loans are payday loan lenders in a festive mask. But be warned: Payday loans are known to do more harm than good. The interest rates are sky-high, and loan repayment terms are extremely short. If you’re not careful with payday loans, you can wind up in more debt than you initially had.

    Christmas loans also come in the form of a personal installment loan. The interest rate with a personal loan is far more reasonable than payday loans. You can apply for an installment loan online, get approved online, and get the money deposited into your bank account within 48 hours. Unlike traditional bank loans, poor credit isn’t such a big obstacle. These online lenders leverage advanced analytics that look beyond your credit score. There’s also less paperwork and no face-to-face appointments.

    Christmas Vacation Loans

    Another reason that many people need funds for the holidays is to go on a vacation. It's a really popular time of year for vacations, with kids off of school and families getting together for the holidays. That said, it's also a very expensive time of year with increased holiday spending, and vacations can be very costly. In order to alleviate some of the burden, you can get a Christmas vacation loan. These types of loans come in the form of a personal loan and can be obtained through your bank or online lender.

    While there are other ways to pay for a Christmas vacation, other than a secured or unsecured loan, the interest rate ranges on personal loans can make them much more affordable than other methods like a credit card. That is unless you use actual cash. Credit cards have high annual percentage rates, and unless you pay it off during a low introductory rate, it can cost you much more than a personal loan would.

    With a personal loan, the application and funding process is fast, allowing you to afford your holiday-related expenses faster.

    Can I get a Christmas loan with bad credit?

    Whether you go with a payday lender or personal installment lender, you can get a Christmas loan with less-than-perfect credit. But there are a few important distinctions to make between these two lenders.

    Payday lenders are attractive to many borrowers because they offer Christmas loans with no credit check. However, with payday lenders there is a high risk due to short repayment timelines and interest rates of more than 400%. Furthermore, positive repayments are not reported to the credit bureaus, so you will not build your credit score with a payday loan.

    With personal instalment lenders, not only do you benefit from a customizable repayment schedule and a far lower interest rate, but your positive monthly payments get reported to the credit bureaus to help you rebuild your credit. That said, you'll have to get a soft credit inquiry and a hard credit inquiry before your final approval, which will slightly lower your credit score.

    It’s also important to note that the better your credit is, the better interest rates you will get. So if you have the time, you might want to look into ways to improve your credit score before submitting your application for a Christmas loan.

    The pros and cons of Christmas Loans

    All forms of financing come with pros and cons including Christmas loans. It’s important to understand the advantages and disadvantages of financing before proceeding.


    • It alleviates financial stress. The stress of holiday expenses is never fun. Instant Christmas loans temporarily relieve financial stress and provides the breathing space to help see you through the holiday season.
    • Quick and convenient. Christmas loans are fast, easy, and convenient to obtain whenever you need one. The internet has made it extremely simple to apply online and get the funds deposited within 48 hours if needed.
    • Credit-building opportunities. Not only are christmas loans attainable if you have less-than-perfect credit, but—if you choose the right type if loan (i.e. personal loan)—it can be used to help you rebuild credit. Payday loans do not offer this benefit.


    • Interest charges. The interest rates on Christmas loans can be expensive which can increase the amount of financial stress you’re already experiencing. If you go with the wrong lender (i.e. payday lenders), some interest rates can be as high as 400%!
    • You have to pay it back. This drawback goes without saying, but you should only borrow what you can pay back in a reasonable amount of time so you don’t stress too much about money after the festive season.

    Alternatives to Christmas Loans

    Christmas loans are available to you if you need them to afford holiday spending, but they aren’t your only option. If you want to avoid taking out a loan for the holidays, consider your alternatives:

    • Create another income source. Getting a second job will provide you with some extra cash for Christmas.
    • Learn to budget and save. By working on your budgeting skills, you can build up a Christmas cash fund for all of your holiday expenditures. It’s never too late to budget and save!
    • Plan ahead of time. If you’re someone who leaves all their Christmas shopping until the last minute, you’re asking for trouble. Learn to be an expert planner. Planning ahead means you give yourself more time to gather everything you need for Christmas and take advantage of early shopping events like the Black Friday sales.
    • Get creative and make necessary cutbacks. There is a lot of glitz and glamour surrounding Christmas these days, but it doesn’t have to mean you have to overextend your finances! Instead of getting big expensive gifts for your friends and family, consider less expensive but more meaningful gifts. If you can’t afford Christmas this year, there are lots of cutbacks you can implement to make the holiday more affordable. You just need to get creative and figure out what’s really important to you.

    The bottom line

    October to December is the peak season for spending and shopping. If you’re determined to get a loan for the festivities, make sure you apply with a trustworthy lender that offers reasonable interest rates. And steer clear of payday lenders!

    Get the cash you need, e-transferred

    Christmas loans can be a big help during the holidays, and Spring Financial can help you get the cash you need this holiday season with personal installment loans deposited to your bank account!

    What sets Spring Financial apart from other lenders:

    • Convenient installment loans: Get approved for loans up to $35,000 without ever having to visit a bank.
    • Same day funding: Apply online in 3 minutes and get funds sent directly to your bank account on the same day.
    • Customizable repayment schedules: Payment plans are flexible with terms of up to 60 months. Our open-ended personal loans can be paid back early too, giving you the option of avoiding monthly interest charges.
    • Credible Canada-wide lender: Spring Financial is trusted by Canadians across the country. Check out the third-party reviews on Trustpilot and Feefo.
    • No hidden costs: You never have to worry about hidden costs like application fees or maintenance charges ever.
    • No-hassle installment loans for everyone: It doesn’t matter if you’re new to credit or have filed for bankruptcy, Spring Financial says yes when the banks don’t.

    Get approved for an installment loan today by applying online or calling 1-888-556-6441.

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