Christmas is around the corner in just a few months from now and like every year it is celebrated with great fervor and happiness. This year’s Christmas is even more special as the world suffered the pandemic and couldn’t celebrate anything due to lockdown and social distancing guidelines. People in the UK are getting euphoric for Christmas to meet their friends and family, go out for a vacation, and do almost everything they wanted to do this year.
This celebration comes at a cost, the money aspect kicks in and there is an immense expenditure incurred on celebrations. People who did not have adequate savings often miss out on all the fun due to the dearth of money. However, you don’t have to be despondent when many lenders are offering Christmas loans in the UK. Now, financial constraints would not become a hindrance in your festival plans.
Christmas loans are highly affordable and usually get approved quickly as they have a very low rejection rate going by history. Many direct lenders are operating in the UK, providing such loans on a short-term basis. Let’s get to know about these loans in detail for you to understand them better and decide whether they are right for you or not.
How Can You Back Yourself with Finances?
There are plethoras of activities you can do and things you could buy with these loans. These can be buying gifts for your loved ones, or spend on home repairs and upgrades. These could be buying appliances like a new fridge, microwave, television or air conditioner. You can get married on this auspicious day, or go out on holiday with your family to celebrate Christmas and New Year. In a nutshell, you can choose to use this money obtained as a loan in several such purchases.
How Loans Benefits You?
There are many features of these loans which are explained below:
- Credit Score: One of the most striking features of these loans is that these are bad credit loans. This means that even if you have a substandard history of loan repayment and thus a bad credit profile, then also you are eligible to get these loans. They look for your present need and future ability to repay than your past repayment history. Also, if you are repaying this loan on time, then your credit score will start getting better.
- Online Process: Another prominent aspect of these loans is that you do not have to visit the lender’s office for anything physically. Be it, filling the loan application form, submitting documents, or even signing the loan agreement, everything is online. This means that you won’t have to take a day off to apply for a loan or leave your office in between the work.
- Minimum Documentation: This feature is quite unlike banks where you have to go through a lot of tedious paperwork and documentation. The loan process here is highly streamlined and standardized. Additionally, you would not have to produce a guarantor or give any collateral as a security to be pledged against the loan, unlike a bank loan. They will ask for your income sources and proof of these sources in documents.
- Instant Decision: These lenders give you an instant decision on your loan application as to whether it has been approved or not. The approval percentage is 90% in the UK, only 1 in 10 applications are rejected. In addition, once the loan is approved, the loan amount is transferred to your bank account on the same day.
- Interest Rates: Though the interest rates vary from borrower to borrower, one thing is expected that the interest rates are typically higher on Christmas loans. It usually varies between 30-70% and can go up to 120% depending on your profile, loan amount and its tenor. Almost all these lenders have online instalment calculators on their app/website. You can know your monthly instalment before applying for the loan. Just enter the loan amount, tenor and the interest rate to know your monthly liability.
- Other Terms & Conditions: These loans are usually of short-term in nature with typical tenor being of 3 months to 36 months usually. Also, these direct lenders do not charge you additional fees for loan processing or any other such hidden charges are not there. The loan amount you can borrow is typical £100 to £5000 depending on your profile. There are no prepayment charges as well with most lenders, which mean you can settle the entire loan in one go. Close the loan anytime you want.
- Loan Repayment: The best part is that you can negotiate with the lender about the terms and conditions of the repayment. They have the option of weekly payment, monthly payment, or regular instalments. The repayment terms are usually flexible with multiple payment options and no penalty on late payment. Just sit with the lender and chalk out the repayment schedule based on your cash flows.
Description: This blog is written to make people aware of taking financial help to make their festival even more happening.