If you want to borrow money for Christmas, financing the holiday season is one 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.

How to get a loan for Christmas

Christmas loans can come in several forms, 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 Christmas loans are payday loans 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, bad 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.

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.

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 alliviates 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, 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 maxing out credit cards! 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 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 Fresh Start Finance can help you get the cash you need this holiday season with personal installment loans deposited to your bank account!

What sets Fresh Start Finance apart from other lenders:

  • Convenient installment loans: Get approved for loans up to $15,000 without ever having to visit a bank.
  • Lightning-fast 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: Fresh Start Finance 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, Fresh Start Finance says yes when the banks don’t. 

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