Tips for Finding the Best Personal Loans for the 2021 Holiday Shopping Season

Tips for Finding the Best Personal Loans for the 2021 Holiday Shopping Season

Around the holidays, many people want to spend more on gifts for their loved ones. You shouldn’t go too deep into debt because you might not be able to pay it off. With the uncertainty of the world in 2021, you may not be able to afford much and still want to enjoy the holiday shopping season.

It’s important to know what a short-term loan is, what to consider when trying to get a personal loan, and much more. Here are all the details:

What’s a Short-term Loan?

Short-term loans are highly convenient. There are two kinds: the payday loan gives you a bit of extra cash that you pay back when you get your next paycheck. A regular short-term loan doesn’t require collateral and offers a repayment period of anywhere from three to 12 months.

They work well for minor expenses, extra cash for holiday shopping, and more. However, you’ve got to approach it correctly to get more from it. Find out what to consider before getting a short-term loan.

What to Consider When Applying for a Short-term Loan

You already know why you want the short-term loan, which is great. It’s important to consider the reasoning for it. Though it’s readily available, you don’t want to get into a situation where you stay in debt all the time. Make sure that you need it and have the means to pay it back in the time allotted.

Here are a few other factors to consider:

Interest Rate

Short-term loans often have higher interest rates. You pose a higher risk to lenders because they don’t check your credit history or score. While some private banks and lenders have lower rates, they may not lend to you because of your poor history.

You should also be aware of how much money you need and try not to overestimate. It’s tempting to spend lavishly, but your loved ones don’t want to see you struggle financially to get that new Xbox system. Borrowing more than you need means having a high-interest rate.

Repayment Terms

It’s up to you to read the repayment terms from the lender to make sure you can cover them. Determine how much you’ve got to pay each month and add it to your budget.

Sometimes, it’s possible to ask the lender to increase repayment durations. That might raise your interest rate, but it gives you more time to pay things off.


Short-term lenders charge different fees. Some might want you to cover the processing, origination, appraisal, and credit report fees. Ask the lender what they charge before signing on the dotted line. If those costs seem high, consider another lender.

Loan Brokers

It might be wise to visit a loan broker to help you with the process. They have reliable lenders available to meet your needs.

How to Find the Right Lender

You can find lenders online, at credit unions, and banks. Most people choose online lenders because they’re more flexible and quicker. Make sure that you check the interest rates and repayment terms before signing up for a loan.

With that, you should read reviews from others who have used that lender. They may not all be positive, but there shouldn’t be more than a few issues.

Look into how they decide to lend to people. Do they only check credit scores, or do they also use education or employment? Generally, lenders who use employment as the factor are short-term and have higher interest rates.

Types of Loans Available for Average/Poor Credit

If you have average credit scores, you could use a bank or private lender to get funds. However, the lender is likely to charge more interest and other fees because you’re seen as a risk to them.

Typically, people turn to payday loans if they’ve got bad credit. These are short-term loans up to $500 that you pay back when you get your paycheck. That can be anywhere from two to four weeks. They rarely do a credit check and only see if you are employed.

Those who own a home might be able to get a home-equity loan to cover holiday shopping.


It’s crucial to understand what short-term loans are and what to consider when choosing one. That way, you get the best deal and can spend money on your loved ones this holiday season. Make sure to research each lending company and determine its fees and repayment schedules. From there, you can get your funds soon and start shopping!

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