In 2022, 35% of Americans took on more than $1,500 worth of additional debt during the holiday season, according to a LendingTree study. And if you want to bridge the gap between your gift list and your bank account, you may be looking for a way to finance your purchases.
Holiday loans are personal loans that you can use to cover holiday-related expenses. These loans come with fixed APRs (annual percentage rates) and fixed monthly payments over a predetermined period of time, commonly 12 to 60 months.
Holiday loans are typically unsecured loans, meaning they won’t require collateral. Because of this, lenders rely heavily on factors like your credit score, income, payment history and debt-to-income (DTI) ratio to determine your personal loan eligibility.