Best Holiday Loans: Fast Funding & Low Rates

Get money in as soon as 24 hours for holiday gifts, decorations and travel

Headshot of Lauren Nicholson
Written by
Lauren Clifford
Updated on: May 29, 2025
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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Best for:
Saving money with a short loan term
PenFed logo
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Best for:
Getting better approval odds with peer-to-peer lending
Prosper logo
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Best for:
Same-day funding
SoFi logo
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Best for:
Multiple discounts
Upgrade logo
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Best for:
Bad or no credit
Upstart logo
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More Options

Holiday loans at a glance

PenFed: Best for saving money with a short loan term

8.99% - 17.99%

12 to 60 months

$600 - $50,000

Not specified

Pros
  • Choosing a short loan term can save you money on interest
  • Loans start at $600 (most lenders make you take out at least $1,000)
  • No upfront fees
  • Get money as soon as the next day
Cons
  • Must become a member of PenFed Credit Union
  • No info on what credit score or income you need to qualify
  • Charges a $29 late fee

What to know

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If you need a small loan for the holidays, check your rates with PenFed. You can borrow as little as $600, and you’ll pay competitive rates. Federal credit unions like PenFed cap their rates at 18%, which will help you keep the cost of your loan down.

You can check your rates with PenFed even if you’re not a member, but you’ll need to become a member to close on your loan. Anyone can join, and PenFed makes it easy to apply for membership as part of your loan application process.

How to qualify

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To qualify for a PenFed loan, you must meet the following requirements:

  • Membership: PenFed membership (anyone can join)
  • Administrative: Open a PenFed savings account with a $5 deposit; may need to submit documents to verify your identity and income
See Personalized Results Read Our Expert Review

Prosper: Best for getting better approval odds with peer-to-peer lending

8.99% - 35.99%

24 to 60 months

$2,000 - $50,000

600

Pros
  • Peer-to-peer loans can be easier to get
  • Allows co-applicants, which can improve your chances
  • Fast funding possible
Cons
  • Charges an upfront fee of 1.00% - 9.99% on every loan
  • Not available in all 50 states

What to know

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Prosper’s peer-to-peer lending platform connects borrowers with individual investors, making it easier for people with fair credit to qualify for holiday loans. You can boost your approval odds further by adding a co-applicant with good or excellent credit.

Like many other personal loan lenders, Prosper charges fees on every loan called origination fees. The worse your credit, the higher your origination fee is likely to be, and the more you’ll pay in interest to borrow money.

How to qualify

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To get a loan with Prosper, you must meet the following requirements:

  • Age: Be 18 or older
  • Administrative: Have a U.S. bank account and Social Security number
  • Residency: Not live in Iowa or West Virginia
  • Credit score: 600+
See Personalized Results Read Our Expert Review

SoFi: Best for same-day funding

8.99% - 35.49% (with discounts)

SoFi Pricing Disclosure

Fixed rates from 8.99% APR to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 04/24/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.

Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.

Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.

24 to 84 months

$5,000 - $100,000

680

Pros
  • Same-day funding possible
  • No required fees
  • Discount for setting up automatic payments
Cons
  • Have to borrow at least $5,000
  • Need good credit
  • May need to pay fee for lowest rates

What to know

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If you need a fast holiday loan, consider SoFi. You’ll get your money as soon as the day you sign, and you can snag a 0.25% discount for signing up for autopay. SoFi’s fees are optional, so you can choose to pay an upfront fee in exchange for lower rates, potentially saving you money over the course of your loan.

If you need to borrow less than $5,000 to cover your holiday expenses, consider the other lenders on this list. SoFi’s loans start at $5,000, and you should never borrow more than you need, since you’ll pay interest on the entire amount.

How to qualify

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You must meet the requirements below to get a loan from SoFi:

  • Age: Be the age of majority in your state (typically 18)
  • Citizenship: Be a U.S. citizen, an eligible permanent resident or a non-permanent resident (a DACA recipient or asylum-seeker, for instance)
  • Employment: Have a job or job offer with a start date within 90 days, or have regular income from another source
  • Credit score: 680+
See Personalized Results Read Our Expert Review

Upgrade: Best for multiple discounts

7.99% - 35.99% (with autopay)

24 to 84 months

$1,000 - $50,000

580

Pros
  • Discount for using autopay
  • Can apply with another person
  • Get money in as soon as one business day
Cons
  • Charges an upfront origination fee of 1.85% - 9.99% on all loans
  • Charges late fees

What to know

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You can apply for an Upgrade holiday loan with another person, which will improve your odds of getting more money and lower rates as long as your co-borrower has good or excellent credit. You can also get lower monthly payments by using Upgrade’s autopay discount.

While some lenders don’t charge upfront fees, Upgrade takes an origination fee of 1.85% - 9.99% off the top of every loan.

How to qualify

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To qualify for a loan through Upgrade, you must meet the requirements below:

  • Age: Be at least 18 years old (19 in some states)
  • Citizenship: Be a U.S. citizen, permanent resident or live in the U.S. with a valid visa
  • Administrative: Have a valid bank account and email address
  • Credit score: 580+
See Personalized Results Read Our Expert Review

Upstart: Best for bad or no credit

6.60% - 35.99%

36 or 60 months

$1,000 - $50,000

300

Pros
  • One of the lowest credit score requirements on the market
  • Frequently rated among the best in customer service by LendingTree users
  • Get money in as little as one business day
Cons
  • Only two repayment terms: 36 or 60 months
  • Potentially high upfront fee of 0.00% - 12.00% of loan amount

What to know

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Upstart loans are an excellent alternative to payday loans for borrowers with bad credit who need a quick loan to pay for last-minute holiday gifts and travel. Unlike payday lenders, Upstart charges affordable rates that max out at 35.99%. Plus, Upstart has an approval rating of 99% from LendingTree users and regularly earns high marks for customer satisfaction.

If you do choose Upstart for your holiday loan, you may need to budget for an upfront origination fee of 0.00% - 12.00% of your total loan amount. Upstart will take this fee from your loan before sending it to you.

How to qualify

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Upstart has transparent eligibility requirements, including:

  • Age: Be 18 or older
  • Administrative: Have a U.S. address, personal banking account, email address and Social Security number
  • Employment: Have a job or job offer that starts within six months, or have regular income
  • Income: Have a valid source of income, including a job, job offer or another regular income source
  • Credit-related factors: No bankruptcies within the last three years, fewer than six inquiries on your credit report in the last six months and no current delinquencies
  • Credit score: 300+ (unless you’re an eligible college student or graduate, in which case Upstart could approve you with no credit)
See Personalized Results Read Our Expert Review

What is a holiday loan?

Holiday loans are personal loans you can use to bridge the gap between your bank account and your holiday wish list.

Before you use a loan to deck the halls, consider how last year’s borrowers feel about their holiday debt, according to a LendingTree study:

  • 36% of Americans took out an average of $1,181 worth of holiday debt.
  • 60% of people who have holiday debt are stressed about that debt.
  • 42% regret how much they spent on their holiday shopping.

Avoid borrower’s remorse by exploring loan alternatives and by making sure your loan payments fit into your budget.

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Cost of a holiday loan

When you take out a holiday loan, the lender will look at your credit to decide what rates to charge you. A bad credit score will land you higher interest rates and fees, which can make a holiday loan unaffordable.

If you have poor credit and want to take out a holiday loan, take time to improve your credit score beforehand. This will boost your chances of approval and save you money in the long run.

Holiday loans: The cost of borrowing

Based on our data, borrowing $5,000 for the holidays could cost you $1,481.28 in interest with good credit or $3,963.84 with fair credit. That means you can expect to pay more than $1,000 in interest charges on a $5,000 loan, even if you have a strong credit score.

Here’s how we did the math using our personal loan statistics:

Credit score720660
Loan amount$5,000$5,000
Average APR17.71%*42.87%*
Loan term36 months36 months
Monthly payment$180.04$249.00
Total cost of the loan$6,481.28$8,963.84
Total interest paid$1,481.28$3,963.84

*Based on LendingTree user data from the fourth quarter of 2024.

Interest charges — the cost of borrowing any loan — will make an already expensive holiday season cost even more. Use a loan calculator to determine whether the cost of interest is worth it to you.

Should you get a holiday loan?

Don’t get a holiday loan if you can avoid it. Unlike mortgages or small business loans, holiday loans can qualify as “bad debt,” or debt that doesn’t benefit you financially in the long term.

Going into debt for nonessential expenses — whether in celebration of Christmas or any other holiday — will take a toll on your budget.

And if you choose a standard loan term of two to five years, you’ll still be making payments on this year’s stocking stuffers for the next few holiday seasons — unless you pay off your debt sooner. (On the bright side, all lenders we compiled above let you pay off your loan early with no penalty.)

 Steer clear of Grinchy lenders

If you do decide to get a holiday loan, avoid getting a payday loan and choose a reputable lender like the ones on this list. The lenders we highlighted cap their rates below 36%, while predatory lenders often charge rates in the triple digits. Payday loans can trap you in a cycle of debt, forcing you to take on more debt to cover the original loan when payments are due.

Pros and cons of a holiday loan

ProsCons
Scheduled payoff date. Unlike credit cards, holiday loans come with set repayment periods, so you’ll know exactly when you’ll be debt-free.

Fixed rates and monthly payments. You can break up holiday expenses into predictable monthly loan payments that stay the same for the duration of your loan.

Quick money when you need it. Many lenders offer fast funding, sometimes as soon as the same business day.

Use the money for almost anything. You can use a holiday loan to pay for travel expenses, gifts or decorations.

No collateral required. Unsecured loans like the ones above don’t require you to put up valuable property as collateral, so you won’t risk losing assets.

Could improve your credit. Credit score issuers like to see a variety of credit types on your profile, so taking out a loan and making on-time payments can boost your score over time.		 Interest on top of holiday expenses. Holiday loans cost money in the form of interest and fees. You’ll pay more for your holiday expenses when you take out a loan than if you paid with cash.

Increased debt load. It’s generally not a good idea to take out debt and pay interest on nonessential expenses.

Years-long repayment terms. You may be making payments long after the holiday season ends — and the next one begins.

Loan minimums. Holiday loans typically start at $1,000, though some lenders only offer $5,000 and up. Check out credit unions if you need a smaller loan.

Potential fees. Many holiday loans come with an upfront origination fee that will cost 1.00%-12.00% of the amount you borrow. Lenders will take this fee from your loan before sending it to you.

Potentially high rates. Since holiday loans are unsecured, people with bad credit may end up with high APRs if they qualify at all.

How to find a holiday loan with LendingTree

Shopping around for a personal loan on LendingTree can save you an average of $1,659 over the life of your loan. Here’s how it works.

Tell us what you need

Take two minutes to tell us who you are and how much money you need. We’ll take care of the rest. It’s free, simple and secure.

Shop your offers

We’ll send you offers from up to five trusted lenders. Compare your offers side by side to see which one will save you the most money.

Get your money

Choose an offer and work with the lender to finalize your loan. Some people see money in their accounts in 24 hours, depending on the lender they choose.

See Personalized Results

Alternatives to holiday loans

Holiday loans can help break up your Christmas or other festive spending into affordable payments, but the bottom line is that it costs money to borrow money. Consider the following alternatives:

 Pay in cash

The best strategy to avoid taking on new debt this season is to create a budget and save in advance for your holiday purchases. Here’s how:

  1. Create a budget. Make a list of all the purchases you plan to make, and research the costs. Include gifts, travel expenses, decorations and food.
  2. Divide the total cost by the number of months you have left to save. For example, if you need to save $600 for holiday spending and you’re starting in August, you need to save $150 each month to meet your goal before December.
  3. Stick to your budget. Remember that avoiding the temptation to overspend will keep you from paying for your holiday expenses well into the new year.

 Credit card

If you’re not sure how much money you’ll need for the holidays, consider using a credit card. Credit cards allow you to borrow as much as you need up to your credit limit, and you’ll only pay interest on what you borrow.

If you have good or excellent credit, you can save money with a 0% APR credit card. These cards don’t charge you interest during the introductory period (commonly six to 21 months).

 Watch your balance

It’s easy to overspend when you have a high credit limit. In fact, 56% of people who went into debt last holiday season didn’t plan to do so. Remember that you’ll have to pay interest on any credit card purchases that aren’t paid off by the time the statement balance is due.

 Buy now, pay later

Buy now, pay later apps allow online shoppers to break up their purchase into four equal payments, due every other week.

BNPL companies typically don’t charge interest or fees for these short-term loans, but some companies offer longer financing options that do come with interest. To use a BNPL service, look for the financing option during the checkout process.

 Borrow money from family or friends

You can borrow money from family to cover your holiday expenses. To avoid financial tension, write up a personal loan contract ahead of time and commit to a repayment schedule in writing.

 Get creative

  • Instead of forking over cash for pricey plane tickets, invite out-of-town family to visit you or host a holiday gathering over Zoom.
  • Hosts are expected to spend an average of $556 on hosting a holiday party. Instead of covering these costs alone, tell your guests to bring a dish and their favorite piece of holiday decor. You can even ask a family member to co-host the holiday with you to split the costs.
  • Instead of paying for expensive custom holiday cards, make your own or buy standard cards online or at a department store.
  • Instead of buying gifts for each of your family members, start new traditions like Secret Santa or white elephant. You can also give the gift of experiences, like a day at a local park or beach.

How we chose the best holiday loans

We reviewed more than 30 lenders that offer personal loans to determine the top five holiday loans. To make our list, lenders must offer competitive APRs to the general public. From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

According to our systematic rating and review process, the best holiday loans come from PenFed, Prosper, SoFi, Upgrade and Upstart.

Frequently asked questions

Yes. Since lenders typically allow you to use the money for almost anything, you can get a loan for holiday expenses.
 
It’s even possible to get a holiday loan with bad credit, though it will be harder to qualify. Lenders that do work with people with bad credit charge higher interest rates, making the loan more expensive.

It can be hard to get a holiday loan if you don’t have good credit or much experience with debt. That said, personal loan requirements vary from lender to lender, and some companies are willing to work with bad-credit borrowers or people who are new to credit.
 
It’s worth taking the time to improve your credit score before you apply. Having better credit will help you qualify for more loans with better rates, which will save you money.

Avoid holiday loans if you can. Taking out debt always comes with risk, and there are particular risks that come with personal loans. If you’re sure you want to take out holiday debt, shop around and compare rates to improve your chances of getting an affordable loan.