Should I Take Out a Personal Loan for Holiday Spending?

posted in: Loans, Personal Loans 0

The holidays are one of the most magical times of the year, but making the most of them can cost a pretty penny. From holiday parties to delicious holiday dinners to the gifts you want to purchase for your loved ones, it all adds up. Taking out a personal loan for holiday spending can be a great way to receive the funding you need to make this holiday fit for a Hallmark card!

At Camino Federal Credit Union, we have been serving Montebello since 1941 with personal loans and guidance tailored to each member’s needs and situation. Read our blog to learn what this type of loan is and how it can help you:

What is a Personal Loan for Holiday Spending

A personal loan for holiday spending, also called a ‘holiday loan,’ is a personal loan you take out specifically for seasonal funding. 

When you take out this type of loan, you agree to make monthly payments for a set length of time. You can use a personal loan to cover most expenses, including holiday trips or gift purchases. 

Better yet, the interest rates on these loans tend to be lower than on credit cards, and your monthly payments will be consistent, which isn’t the case with credit cards. You’ll know precisely how much you have to pay each month with no surprises. 

Should I Take Out a Personal Loan for Holiday Spending

Using a personal loan for holiday spending could yield several benefits for you this holiday season! From receiving quick funding in a single lump sum to maybe boosting your credit score, let’s dive into some benefits of using this type of loan. 

Receive Quick Funding

Once you receive approval for this loan, you could receive the entire loan amount in one lump sum deposited to your bank account. Just ensure you provide complete, accurate information when applying to avoid processing delays. 

Quick funding is a key consideration when weighing your options between local credit unions vs. big banks. When you work with a credit union, you could enjoy fast, local decision-making, take advantage of all the sales, and get your shopping done early with plenty of time to enjoy the holidays! 

Camino Personal Loans

You Could Save Money

A personal loan from Camino can also be a viable option to help you save money. 

Personal loans typically have lower interest rates than credit cards, meaning you could save money in interest overall.

Also, the monthly payments could be lower depending on the rate and term, making it a more manageable source of funding!

You Only Spend What You Borrow

Another benefit of using a Camino personal loan for holiday spending is that you should only spend what you borrow. 

You receive the full loan in one lump sum and nothing more, which could differ from a credit card where your continued shopping and spending could easily get out of control. Controlling spending is a crucial factor in responsibly managing your finances.

You Can Enjoy Set, Fixed Payments

Another huge advantage of using personal loans for this purpose is you could have a set and fixed repayment schedule every month with an end date, so you will know when you will be done paying off the loan. This is extremely helpful for future budgeting.

With lenders like Camino Federal Credit Union, you also enjoy flexible terms, so you can set terms to give yourself time to repay the loan.  

You Could Boost Your Credit Score

By using a personal loan for holiday spending, you could also improve your credit score with on-time monthly payments. Improving your credit score could open up better financing options in the future because you will demonstrate that you are a creditworthy borrower. 

Talk to Us Today About Taking Out a Personal Loan for Holiday Spending to Ensure This Holiday is One to Remember!

You have worked all year to enjoy the holiday season. At Camino, we proudly help people like you create the type of holiday they deserve. When you take out a personal loan for holiday spending with us, you can rest assured that you will enjoy fast, local decision-making, competitive rates, and flexible terms.

Visit our Personal Loans page to learn more about our financing options, speak with a member advisor, about receiving the financing you need to fill this holiday with moments you and your loved ones will cherish for a lifetime.