Gifts, decorations, travel, and other holiday-related expenses can add up quickly. Holiday shoppers plan to spend an average of $1,778 during the holiday season, according to a 2024 survey by the Deloitte Consumer Industry Center.
If you need help covering holiday costs, a loan can help by spreading those costs over weeks, months, or years.
But if you don’t have good credit, avoid certain types of loans, like payday loans, title loans, and pawnshop loans. You don’t want the temporary gain of holiday cash to come with the pain of ultra-high fees or interest in January. We’ll cover the best holiday loans for bad credit and no credit — and which to avoid.
How do holiday loans with no credit check work?
Holiday loans that typically don’t require a credit check include payday loans, cash advance apps, payday alternative loans (PALs), and car title loans. “Buy now pay later” (BNPL) may only require a soft credit check, along with reputable installment loan lenders like 60 Month Loans and OppLoans.
Most no-credit-check loans require repayment within a week to a month.
Important
Since these loan types are targeted to people with bad credit, some have very high fees that translate into very high APRs. In some states like Idaho and Nevada, payday loan APRs can reach over 600%, according to Pew Research.
- Installment loans (recommended): Of the mix, no-credit-check or soft-credit-check installment loan lenders tend to have the best terms, lower monthly payment amounts, and longer repayment periods (up to 7 years, in some cases). APRs can range from around 30% to over 100%.
- Payday alternative loan (recommended): A good alternative is a payday alternative loan (PAL) for holiday expenses. These credit union loans are designed for people with poor credit, but cap interest rates cap at 28%, and they offer repayment terms up to one year, and loan amounts up to $2,000.
- “Buy now, pay later” apps (recommended): If you’re able to qualify and can pay the loan back in 6 weeks, BNPL can offer an interest-free way to borrow money for holiday gifts and expenses. Lenders may require a soft credit check. You might have the option for a longer repayment term as well — up to 48 months — for large purchases.
- Payday loans (not recommended): With payday loans and cash advance apps, you typically need to repay the debt by your next payday. If you can’t, you can rack up even more fees — which could lead to a cycle of debt and increasing feesis where the debt cycle comes in.
- Cash advance apps (use caution): These are generally a safer alternative to payday loans, just avoid fees to expedite the money (same-day transfers). “Instant money” fees can lead to APRs similar to payday loans. But if you can wait for funding and don’t tip, cash advance fees can be relatively low. As long as you don’t need more than $500 (in most cases) and can pay the money back from your next paycheck.
- Car title loans (not recommended): With a car title loan, you may have up to a month to repay, but risk losing your vehicle if you don’t. APRs on car title loans are typically over 100% and can be over 300%.
Tip
With some credit unions, you may need to be a member for a month to be eligible for a PAL, but with others, you could apply for one immediately once you join.
Try prequalifying with personal loan lenders to see if you might get approved and at what rates.
Prequalification won’t hurt your credit, but it’s not an offer of credit. If you apply for a personal loan, many lenders conduct a hard credit pull, which could temporarily ding your score.
Expert editor insight: “People of a certain age (ahem) might remember putting holiday purchases on layaway. You would put down a deposit on an item and make installment payments until you were fully paid up and could claim your merchandise. Layaway was interest-free but typically involved fees. Not many retailers offer layaway programs anymore, although some have similar options with different names (such as “progressive leasing”). Modern layaway can still involve fees, though, proving that some things never change.”
— Barry Bridges, Personal Loans Editor, Credible
Holiday loans with no credit check lenders
Here are a few lenders to consider if you need a holiday loan with no credit check and a PAL is not an option:
60 Month Loans
60 Month Loans offers loan terms ranging from 24 to 60 months, and APRs up to 36%. You can typically find loan amounts from $2,000 to $10,000.
It is only licensed to lend in 19 states, so check the map on its website to confirm eligibility. Once you submit your application, the lender will perform a soft credit pull, which won’t affect your credit score.
You can expect to receive your funds one business day after your loan is signed.
OppLoans
OppLoans offers loan amounts ranging from $500 to $4,000 and a typical APR of 160% in most states, with repayment terms ranging from 9 to 18 months.
It offers installment loans through lending partners in nearly 40 states. The lender performs a soft credit check when you apply and requires that you receive your income through direct deposits to qualify.
Possible Finance
Unlike the previous two lenders, Possible Finance has the lowest loan amounts to offer, only up to $500.
The APR for these loans is typically 150%, according to the lender, but it has few requirements and reviews data such as your bank account history instead of a soft credit check. You’ll need to repay the loan in four installments over eight weeks.
Possible Finance will report your payments to two of the credit bureaus, TransUnion and Experian, which can help improve your credit if you make timely payments. Plus, it offers a 29-day grace period if you’re late.
MoneyLion
Though you should exercise caution with cash advance apps, MoneyLion is one to consider if you need a small no-credit-check loan that you can comfortably repay by your next paycheck.
MoneyLion offers 0% interest loans up to $500 with no fees for standard delivery, and tipping is optional. These are both important — if you choose expedited delivery, you’ll pay up to $8.99 per $100, which translates to an APR over 200% for a loan due in two weeks. If you add a tip, the APR could be even higher.
Compare: Payday Loan vs. Cash Advance
Pros and cons
The benefits and drawbacks of holiday loans with no credit check include:
Pros
- Bad-credit friendly
- Flexible
Cons
- Limited options
- High fees/APRs
- Cycle of debt
Pros
- Bad-credit friendly: Even if you have bad credit or no credit, you can still qualify for a no-credit-check holiday loan.
- Flexible: You can use a holiday loan with no credit check to cover virtually any holiday expense.
Cons
- Limited options: It can be difficult to find legitimate lenders that offer no-credit-check holiday loans.
- High fees/APRs: Holiday loans with no credit checks can come with sky-high APRs that can cost you thousands of extra dollars over the life of your loan.
- Cycle of debt: If you can’t repay a no-credit-check holiday loan on time, the fees to roll it over can be excessive and lead to a cycle of debt.
Holiday loans for bad credit
Offered mostly by online lenders, holiday loans for bad credit are personal loans you can use for a variety of holiday-related expenses, like gifts, decorations, and travel.
With a bad-credit holiday loan, the lender will pull your credit, and check your income and existing debt. If you qualify, you’ll receive a lump sum of money, as soon as the same day you apply in some cases. You’ll repay it, typically via fixed monthly payments, over a one- to seven-year period.
With bad credit, you’ll pay a higher APRs than someone with good to excellent credit. But unlike no-credit-check options, traditional personal loans typically cap interest rates at 36%.
Advertiser DisclosureOverview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
- Borrowers with bad credit considered
- Funds as soon as the next business day
- 2-year loan terms available
cons
- No discounts offered
- Origination fee
- Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
Reprise may be an excellent option if you need a loan with bad credit. The lender says it will consider applicants with FICO scores as low as 560, and offers secured loans as well as some cosigned loans to help you qualify. Loan funds can be available the next business day once you’re approved. Plus, the company has a 4.7 Trustpilot rating — indicating generally satisfied customers.
But Reprise is not for everyone. Available loan amounts are relatively low at $25,000, and the minimum repayment term is relatively high at three years. The lender also charges origination fees, does not offer discounts, and is not available nationwide.
pros
- Loans for bad credit
- 4.7 Trustpilot rating
- Secured loans available
- Cosigners considered
- Next-day funding available
- Easy to contact
cons
- Does not accept self-employment income as a primary source of income
- Minimum 3-year loan term
- Relatively low maximum loan amount ($25,000)
- Origination fees up to 6%
- Not available nationwide
- No mobile app
- No discounts for autopay or direct pay
Fees
$15 late fee except where the state has a different limit (ie. NM), return payment fees - $20 except where state has a different limit (ie – NM), and no prepayment penalty
Eligibility
Unavailable in CO, CT, HI, IA, ME, MD, MA, NV, NJ, NY, SD, VT, WA, and WV
Time to get funds
1-7 business days depending on loan security type
Loan uses
Credit card refinancing, debt consolidation, emergencies, major purchases, medical and dental expenses, moving expenses, special occasions, unexpected expenses, vacation and travel
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with bad credit considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
- Flexible eligibility requirements
- Offers secured options
- Competitive bad-credit loans
- Physical presence
cons
- Availability
- Origination fees
- High starting APR
- Low maximum loan amount
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
- Borrowers with bad credit considered
- Funds as soon as the next business day
- 2-year loan terms available
cons
- No discounts offered
- Origination fee
- Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
Reprise may be an excellent option if you need a loan with bad credit. The lender says it will consider applicants with FICO scores as low as 560, and offers secured loans as well as some cosigned loans to help you qualify. Loan funds can be available the next business day once you’re approved. Plus, the company has a 4.7 Trustpilot rating — indicating generally satisfied customers.
But Reprise is not for everyone. Available loan amounts are relatively low at $25,000, and the minimum repayment term is relatively high at three years. The lender also charges origination fees, does not offer discounts, and is not available nationwide.
pros
- Loans for bad credit
- 4.7 Trustpilot rating
- Secured loans available
- Cosigners considered
- Next-day funding available
- Easy to contact
cons
- Does not accept self-employment income as a primary source of income
- Minimum 3-year loan term
- Relatively low maximum loan amount ($25,000)
- Origination fees up to 6%
- Not available nationwide
- No mobile app
- No discounts for autopay or direct pay
Fees
$15 late fee except where the state has a different limit (ie. NM), return payment fees - $20 except where state has a different limit (ie – NM), and no prepayment penalty
Eligibility
Unavailable in CO, CT, HI, IA, ME, MD, MA, NV, NJ, NY, SD, VT, WA, and WV
Time to get funds
1-7 business days depending on loan security type
Loan uses
Credit card refinancing, debt consolidation, emergencies, major purchases, medical and dental expenses, moving expenses, special occasions, unexpected expenses, vacation and travel
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with bad credit considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
- Flexible eligibility requirements
- Offers secured options
- Competitive bad-credit loans
- Physical presence
cons
- Availability
- Origination fees
- High starting APR
- Low maximum loan amount
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
How to compare holiday loans
Prequalify online to see the APR you might get with a personal loan versus using a much shorter-term payday loan or cash advance. Also consider the following when comparing holiday loans:
- APR: In general, traditional holiday loan rates range from 5% to 36%. The lower the APR, the less you’ll spend overall. Keep in mind that it will be difficult to land a low rate if there is no credit check involved. Rates can go as high as 400% for holiday loans with no credit check.
- Fees: Some lenders charge fees on holiday loans, like origination fees and late fees. These can increase your overall cost of borrowing.
- Loan amounts: Every lender has its own borrowing limits for holiday loans. Typically, loan amounts range from $600 to $100,000 or more with personal loan lenders, while payday loans and cash advances may be limited to $500 to $1,000.
- Repayment terms: You’ll usually have between 1 to 7 years to pay back a personal loan used to fund holiday expenses. Holiday loans with no credit check typically have much shorter terms, such as 2 to 8 weeks, and much higher interest rates.
- Cosigner option: A cosigner can be a friend or family member with good credit and a stable income that helps you qualify for a traditional credit-check loan. They may help you get approved for a holiday loan with bad credit, but will also be responsible if you default. Not every lender accepts cosigners.
- Time to fund: Some lenders offer same-day or next-day funding, which can be a huge plus if you need the money quickly for the holidays.
Learn More: How To Compare Loans
Holiday loan costs
If you decide to take out a $5,000 no-credit-check holiday loan with a 160% interest rate and 1-year term, you’ll pay $858 per month and $5,292 in total interest. This holiday loan with no credit check would cost you $10,291 total.
However, let’s say instead you take out a traditional $5,000 personal loan with a 35% interest rate and 2-year term. You’ll pay $293 per month and $2,022 in interest. Your total loan cost would be $7,022 over the life of the loan.
As you can see, it’s well worth your time and effort to look for a traditional loan that does require a credit check. However, there are alternatives you can consider.
Interest rates and loan amounts by credit score
Borrowers with high credit scores are the most likely to qualify for the lowest interest rates and highest loan amounts. But that doesn’t mean you can’t qualify for a loan with bad or fair credit and it still may save you money on interest to take out a traditional loan with a credit check even if you have bad credit. Here’s a look at the average rates borrowers with different credit scores got, as well as their median income.
Personal loan interest rates by credit score
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Excellent (800 and above) | | | |
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Based on Credible user data between April 2024 and March 2025. Source: Credible
If you have bad credit, you still have time to increase your approval odds before the holidays by improving your credit. Also consider applying with a cosigner or applying with a joint applicant.
Holiday loan alternatives
If you’re not interested in a holiday loan, either with a credit check or without, consider these alternatives to help you cover holiday-related costs.
- Save ahead of time: Be proactive and think about your holiday expenses in the spring or summer. This way you’ll be able to save up for them well in advance.
- Credit cards: If you know you can pay it back in full and on time to avoid interest charges, a credit card can be a good option. Look for a card with an attractive sign-on bonus and rewards. Credit cards have an average interest rate of 21.86%, according to the Federal Reserve, but can go as high as 36%.
Compare: Personal Loan vs. Credit Card
FAQ
What’s the difference between no-credit-check loans and traditional loans?
Open
No-credit-check loans don’t involve a credit check. While traditional loans do come with a check credit, they tend to offer lower rates and more favorable terms.
How quickly can I get approved for a holiday loan with no credit check?
Open
Where can I get a holiday loan with no credit check?
Open
Holiday loans with no credit check are usually offered by online lenders. It’s a good idea to shop around and compare all your options.
How long does it take to get a personal loan?
Open
Typically, it takes one business day to a week to receive funds after you apply for a personal loan. If the lender you are approved with does automatic underwriting and direct deposit, you may see funds in your account as soon as the same day. Other lenders, like traditional brick-and-mortar banks, may use manual underwriting which means it may take a few business days or more to be approved and receive funds.
Other factors that may delay the process are if the lender requires more documentation or if there are errors in the application.
Can I get a loan with bad credit?
Open
You may be able to get a personal loan with bad credit. Some lenders such as OneMain Financial offer loans to borrowers with bad credit, which is a FICO score under 580.
Consider a secured loan or asking a close friend or relative to cosign to increase your chances of getting approved. Because secured loans are backed by collateral such as a car, you may have your collateral repossessed if you fail to make payments.
What can't you use a personal loan for?
Open
You can’t use a personal loan to pay for college tuition or a down payment on a home. Most lenders won’t let you use one for business expenses either. You also can’t use a personal loan for illegal activities or gambling.
Common uses of personal loans include debt consolidation, home improvements, emergency expenses, medical bills, vacation, and major purchases. Before applying, check with lenders to see if they offer loans for your specific use. For example, Happy Money only offers loans for debt consolidation and credit card refinancing.
Meet the expert:
Anna Baluch
Anna Baluch is a personal finance writer with over six years of experience. Her work has appeared on CNN, New York Post, and U.S. News & World Report.
