Skip to Main Content

12 Best Christmas Loans of 2024

Personal loans, “buy now, pay later” services, and other quick loans can be used to help pay for Christmas gifts and expenses.

Author
By Erin Gobler

Written by

Erin Gobler

Writer

Erin Gobler is a freelance personal finance writer with more than eight years of experience writing online. She’s passionate about making the financial services industry more accessible by breaking down complicated financial topics in simple terms.

Edited by Meredith Mangan

Written by

Meredith Mangan

Senior Editor

Meredith Mangan is Credible's Senior Editor for Personal Loans. Since 2011, she’s helped steer content creation in the areas of mortgages and loans, insurance, credit cards, and investing for major finance verticals, including Investopedia, Money Crashers, and The Balance.

Updated January 30, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances.

Read More

Featured

Christmas is one of the largest spending seasons of the year. According to the National Retail Federation, consumers spent an average of $832.84 per person on gifts and celebrations last holiday season. With inflation, you can expect that number to be even higher in 2023.

Even if you’ve saved ahead of time, it can be challenging to make it through the holidays without taking on debt. Fortunately, there are different types of Christmas loans available — many with better rates than your credit card. Depending on which you choose, a Christmas loan can offer flexible loan amounts, competitive interest rates, and long repayment periods.

Compare Christmas loan rates of 2024

Advertiser Disclosure
4.24.2

Credible rating

Fixed (APR)

7.49% - 25.49%

Loan Amounts

$5000 to $100000

Min. Credit Score

700

on Credible’s website

View Details

3.93.9

Credible rating

Fixed (APR)

7.80% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

620

on Credible’s website

View Details

4.44.4

Credible rating

Fixed (APR)

-

Loan Amounts

$2500 to $40000

Min. Credit Score

660

on Credible’s website

View Details

4.64.6

Credible rating

Fixed (APR)

8.49% - 17.99%

Loan Amounts

$600 to $50000

Min. Credit Score

760

on Credible’s website

View Details

4.54.5

Credible rating

Fixed (APR)

8.49% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

600

on Credible’s website

View Details

4.94.9

Credible rating

Fixed (APR)

8.99% - 29.99%

Loan Amounts

$5000 to $100000

Min. Credit Score

Does not disclose

on Credible’s website

View Details

44

Credible rating

Fixed (APR)

8.99% - 35.99%

Loan Amounts

$2000 to $50000

Min. Credit Score

600

on Credible’s website

View Details

44

Credible rating

Fixed (APR)

9.57% - 35.99%

Loan Amounts

$1000 to $40000

Min. Credit Score

660

on Credible’s website

View Details

3.93.9

Credible rating

Fixed (APR)

9.95% - 35.99%

Loan Amounts

$2000 to $35000

Min. Credit Score

550

on Credible’s website

View Details

4.34.3

Credible rating

Fixed (APR)

11.69% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

560

on Credible’s website

View Details

44

Credible rating

Fixed (APR)

-

Loan Amounts

$20000 to $200000

Min. Credit Score

660

on Credible’s website

View Details

3.93.9

Credible rating

Fixed (APR)

18.00% - 35.99%

Loan Amounts

$1500 to $20000

Min. Credit Score

540

on Credible’s website

View Details

All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms

Learn More: 

Best Christmas loans

There are a variety of Christmas loans available with different loan amounts, interest rates, repayment terms, and more. The ones below are personal loans, which are some of our favorites, as they have better rates than credit cards, on average, and can be repaid over one to several years, making them a potentially budget-friendly option. Take a few minutes to prequalify with our partner lenders below and see rates you may be eligible for. (Prequalification won’t hurt your credit, but a formal application could temporarily ding your score by a few points.)

personal loans for excellent credit

SoFi

4.9

Credible Rating

on Credible’s website

Est. APR

8.99 - 29.99%

Loan Amount

$5000 to $100000

Min. Credit Score

Does not disclose

Pros and cons

More details

Best Credit Union for Personal Loans

PenFed

4.6

Credible Rating

on Credible’s website

Est. APR

8.49 - 17.99%

Loan Amount

$600 to $50000

Min. Credit Score

760

Pros and cons

More details

personal loans for fair credit

Upgrade

4.5

Credible Rating

on Credible’s website

Est. APR

8.49 - 35.99%

Loan Amount

$1000 to $50000

Min. Credit Score

600

Pros and cons

More details

Low interest rate personal loans

Discover Personal Loans

4.4

Credible Rating

on Credible’s website

Est. APR

-

Loan Amount

$2500 to $40000

Min. Credit Score

660

Pros and cons

More details

home improvement loans

LightStream

4.2

Credible Rating

on Credible’s website

Est. APR

7.49 - 25.49%

Loan Amount

$5000 to $100000

Min. Credit Score

700

Pros and cons

More details

High Close Rates if Pre-approved

Best Egg

4

Credible Rating

on Credible’s website

Est. APR

8.99 - 35.99%

Loan Amount

$2000 to $50000

Min. Credit Score

600

Pros and cons

More details

Large personal loans

BHG Money

4

Credible Rating

on Credible’s website

Est. APR

-

Loan Amount

$20000 to $200000

Min. Credit Score

660

Pros and cons

More details

online experience

LendingClub

4

Credible Rating

on Credible’s website

Est. APR

9.57 - 35.99%

Loan Amount

$1000 to $40000

Min. Credit Score

660

Pros and cons

More details

Christmas loans for bad credit

There are some borrowers lenders prefer over others. If you have bad credit, you’re probably in the latter category. Fortunately, there are lenders that specialize in bad-credit loans. Even though you’ll pay a higher interest rate, personal loans for bad credit tend to have much lower rates than no-credit-check loans like payday loans and cash advance apps.

personal loans for bad credit

OneMain Financial

3.9

Credible Rating

on Credible’s website

Est. APR

18.00 - 35.99%

Loan Amount

$1500 to $20000

Min. Credit Score

540

Pros and cons

More details

debt consolidation loans for bad credit

Universal Credit

4.3

Credible Rating

on Credible’s website

Est. APR

11.69 - 35.99%

Loan Amount

$1000 to $50000

Min. Credit Score

560

Pros and cons

More details

Most Credit Types / Low Origination Fees for Bad Credit

Avant

3.9

Credible Rating

on Credible’s website

Est. APR

9.95 - 35.99%

Loan Amount

$2000 to $35000

Min. Credit Score

550

Pros and cons

More details

Fast personal loans for all credit types

Upstart

3.9

Credible Rating

on Credible’s website

Est. APR

7.80 - 35.99%

Loan Amount

$1000 to $50000

Min. Credit Score

620

Pros and cons

More details

Methodology

Credible evaluated the best personal loan lenders for Christmas loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, credit score and income minimums, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Credible’s team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

Personal loans for Christmas

A personal loan is a type of installment loan, meaning you receive a lump sum upfront, and then pay it off over monthly installments. Personal loans usually have fixed, competitive interest rates. And thanks to long repayment periods and no prepayment penalties with many lenders, you can choose to pay off your loan in months or years, whatever works best with your budget.

Of all Christmas loans, we particularly like personal loans for large purchases and expenses. This is because the average interest rate on a two-year personal loan was 12.17% in August 2023 (the most recent data), while the average credit card rate was 21.19%, according to the Federal Reserve.

tip Icon

Tip

According to the Fed, the average interest rate on a two-year personal loan was 9 percentage points lower than the average credit card interest rate.

There is no shortage of personal loan lenders on the market. With good credit, you may qualify for a personal loan through a traditional bank, a credit union, or an online lender. You’ll have fewer options with bad credit, but a spotty credit history doesn’t have to prevent you from getting the funds you need for Christmas. If you can add a cosigner to your application or apply for a secured personal loan, you may have an easier time qualifying. Just remember that a cosigner will be on the hook for payments if you default, and you could lose your collateral if the same happens on a secured loan.

To find the best personal loans for Christmas, prequalify with multiple lenders first, then compare the annual percentage rates (APRs). This will give you an idea of which loan will be the lowest-cost.

0% APR credit cards

When you open a card with a 0% APR introductory offer, you’ll pay 0% for all purchases over the introductory period — often six months to two years. As long as you repay your balance during that time frame, you won’t pay any interest on purchases made during that time.

If you can pay off all or the bulk of the balance within the introductory period, it’s probably the best option to finance Christmas expenses. But if you can’t, you could end up paying a lot more once the APR adjusts (relative to other options). Keep in mind that you’ll need to have good credit to qualify for a 0% APR credit card offer.

“Buy now, pay later” Christmas gifts

If you do your Christmas shopping online, chances are you’ll be offered the option to check out with a buy now, pay later (BNPL) service. This type of service allows you to break your purchase up into a series of installments, often paid biweekly.

For example, rather than paying $100 upfront for an item, you might pay $25 at the time of the purchase, and then $25 every two weeks until it’s paid off. If you can pay the balance within one to two months, you often won’t pay interest. Many BNPL companies let you spread payments over a year or longer, but you could pay interest up to around 36%.

If you can comfortably pay off purchases with four biweekly payments, BNPL can be a good way to finance Christmas gifts and expenses. But if you need a longer-term payment plan, compare BNPL to personal loans by prequalifying with a few lenders — this can help you see where you’ll get the better rate.

Tax refund holiday loans

A tax refund loan, also known as a refund anticipation loan, is a loan that’s based on a future tax refund. You can typically borrow this type of loan as early as December for the refund you’ll receive once you’ve filed your taxes.

The loan amount is based on your estimated refund amount. For example, if your expected refund is $2,000, that would be the maximum tax refund loan you’d receive. If your refund happens to be lower than expected, you’ll still be required to repay the entire loan. Additionally, refund anticipation loans charge interest. Some tax software companies offer interest-free refund loans, but you generally can’t get one until you’ve filed your tax return.

Christmas payday loans

A payday loan is a small, short-term loan, generally $500 or less, that must be repaid within a few weeks — usually on your next payday.

Payday loans are easy to qualify for because they don’t require a credit check, but they are also extremely risky. The fees on payday loans can equate to an APR of 400% or more, depending on your state, which can make them difficult to repay. Because of the predatory nature of these loans, they should only be considered as a last resort.

Payday alternative loans

We’ve talked about how payday loans are predatory, high-risk loans that should only be used as a last resort. But if you need a loan that’s easy to qualify for to pay for Christmas presents, consider a payday alternative loan (PAL) instead.

A PAL is a loan that’s offered by credit unions as a more affordable and flexible alternative to payday loans. Most are relatively small loans — generally between $200 and $1,000, though some loans are available up to $2,000. They also have longer repayment terms — up to six months or two years, depending on the type of PAL. And interest rates are capped at 28%.

Some credit unions may require that you’re a member for at least one month before you can be eligible for a PAL, while others may not. If you’re already a credit union member, this won’t limit your eligibility. But if you’re not, either plan ahead or find a credit union you can join that offers PALs to new members.

FAQ

Where can I get a Christmas loan?

You can get Christmas loans from a variety of sources, including traditional banks, credit unions, online lenders, credit card issuers, buy now, pay later services, and more. The best place to get a Christmas loan depends on how much you want to borrow, how quickly you can repay it, your credit profile, and other factors. Knowing this information will help limit the field. For example, if you need to borrow more than $2,000 and would like a year or more to repay it, a personal loan or tax refund loan might be your best option.

Where can I get a Christmas loan with bad credit?

Certain types of Christmas loans are more appropriate than others for borrowers with bad credit. Some personal loan lenders offer loans to borrowers with bad credit. Payday loans are the easiest to qualify for, but are very expensive and often predatory in nature. Try a payday alternative loan from a credit union for better terms and a longer repayment period.

Meet the expert:
Erin Gobler

Erin Gobler is a freelance personal finance writer with more than eight years of experience writing online. She’s passionate about making the financial services industry more accessible by breaking down complicated financial topics in simple terms.