Best Holiday Loans: Fast Funding & Low Rates
Get money in as soon as 24 hours for holiday gifts, decorations and travel
| Lender | User rating | APR | Term | Amount | |
|---|---|---|---|---|---|
|
6.74% – 17.99% (with autopay) | 12 to 60 months |
$600 – $50k |
||
|
8.99% – 35.99% | 24 to 60 months |
$2k – $50k |
||
|
8.74% – 35.49% (with discounts) | 24 to 84 months |
$5k – $100k |
||
|
7.74% – 35.99% (with discounts) | 24 to 84 months |
$1k – $50k |
||
|
6.50% – 35.99% | 36 to 60 months |
$1k – $75k |
Read more about how we made our picks.
Holiday loans at a glance
Best for: Saving money with a short loan term – PenFed Credit Union
- APR (with autopay)
- 6.74% – 17.99%
- 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
- Must become a member of PenFed Credit Union to close on loan
- No info on what credit score or income you need to qualify
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 could 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.
Best for: Getting better approval odds with peer-to-peer lending – Prosper
- APR
- 8.99% – 35.99%
- Peer-to-peer loans can be easier to get
- Allows co-applicants, which can improve your chances
- Fast funding possible
- Charges an upfront fee of 1.00% – 9.99% on every loan
- Not available in all 50 states
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.
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: Must live in an eligible U.S. state (Prosper operates in most states, with only a small number of states excluded)
- Credit score: 560+
Best for: Same-day funding – SoFi
- APR (with discounts)
- 8.74% – 35.49%
Fixed rates from 8.74% APR to 35.49% APR. APR reflect the 0.25% autopay interest rate discount and a 0.25% SoFi Plus interest rate 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 11/03/25 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. SoFi Plus Discount: SoFi Plus members are eligible for an interest rate reduction of 0.25% on a Personal Loan. To be eligible for the discount, you must meet the SoFi Plus eligibility criteria within 31 days of the funding of your loan. For complete SoFi Plus eligibility, please see the SoFi Plus terms. When you enroll in SoFi Plus, the discount will lower the interest rate that applies to your loan only during periods in which you are enrolled in SoFi Plus. The discount will be removed during periods in which SoFi determines you are not enrolled in SoFi Plus. Each time your loan is re-amortized, your monthly payment amount will change based upon the interest rate that was in place. SoFi reserves the right to change or terminate this offer for unenrolled participants at any time. You are not required to enroll in SoFi Plus to be eligible for Loan approval. Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2024 was around $33K. Information current as of 11/03/25. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.
- Same-day funding possible
- No required fees
- Discount for setting up automatic payments
- Have to borrow at least $5,000
- May need to pay fee for lowest rates
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.
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: 620+
Best for: Multiple discounts – Upgrade
- APR (with discounts)
- 7.74% – 35.99%
- Discount for using autopay
- Can apply with another person
- Get money in as soon as one business day
- Charges an upfront origination fee of 1.85% – 9.99% on all loans
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.
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+
Best for: Bad or no credit – Upstart
- APR
- 6.50% – 35.99%
- May qualify with bad, thin or no credit
- Frequently rated among the best in customer service by LendingTree users
- Get money in as little as one business day
- Only two repayment terms: 36 or 60 months
- May need to pay an origination fee
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. Upstart will take this fee from your loan before sending it to you.
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
- 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, reasonable number of recent inquiries on your credit report and no current delinquencies
- Credit score: None
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 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 in 2024.
- 60% of people who had holiday debt were stressed about that debt.
- 42% regretted 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.
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 $1,216.87 in interest with very good credit or $2,658.05 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 band | Very good (740-799) | Fair (580-669) |
|---|---|---|
| Loan amount | $5,000 | $5,000 |
| Average APR | 14.74%* | 30.17%* |
| Loan term | 36 months | 36 months |
| Monthly payment | $172.69 | $212.72 |
| Total cost of the loan | $6,216.87 | $7,658.05 |
| Total interest paid | $1,216.87 | $2,658.05 |
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.)
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
Pros
-
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.
Cons
-
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
LendingTree users who get at least one offer receive 20 offers on average. Compare your offers side by side to get the best deal.
Get your money
Pick a lender and sign your loan paperwork. You could see money in your account in as soon as 24 hours.
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:
- 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.
- 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.
- 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).
It’s easy to overspend when you have a high credit limit. 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.
- Instead of covering hosting 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 40 lenders and loan marketplaces 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 assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our systematic rating and review process, the best holiday loans come from PenFed, Prosper, SoFi, Upgrade and Upstart.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from companies through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings.
Why trust our methodology?
LendingTree’s writers and editors diligently vet dozens of lenders to narrow down which ones offer the most affordable rates and a customer-centered experience. We have ongoing conversations with loan companies to ensure accuracy and collect first-person feedback to understand the holistic process of getting and repaying a loan.
Using my financial health counseling certification, I’m here to walk you through the important — and sometimes stressful — process of understanding your personal finances and credit.
Amanda’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
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.