As soon as the festive season approaches together with the New Year, everyone looks forward to a fantastic family reunion or hosting a backyard barbec
As soon as the festive season approaches together with the New Year, everyone looks forward to a fantastic family reunion or hosting a backyard barbecue party with friends. But then, all this without money is impossible. This is why most people in the UK are looking for ways to get Christmas loans. So, this article will talk about how to get Christmas loans in UK in 2020. But before moving ahead, we will discuss how to apply for a loan.
Things you should know before taking out a personal loan in 2020
Before applying for a personal loan, it is necessary to have all the relevant information. It not only improves the chances of acceptance of your loan but can also help you secure a loan at a lower interest rate. Here are some essential things to remember before taking out a personal loan.
While taking out a personal loan, it is for you to take into account considerations such as your credit score, interest rate, and other charges. Examining these parameters makes sure you know what will work best for you.
Therefore, before taking out a personal loan, take the time to consider these aspects:
- Maintain a good credit history
- Assess all costs
- Evaluate your ability to repay the loan
- Consider your needs to arrive at the right loan amount
How to apply for a loan?
You can generally apply for a loan online once you have found the deal you want.
What do you need to apply for a loan?
- Bank details
- Proof of Current address, and previous addresses for the past three years
- Good credit score
- Employment details
- Personal details
Now the main question is, how can people apply for Christmas loans in 2020, and how long does it take to get a loan?
Without a doubt, Christmas is the busiest time of year to borrow money. Those who are working will enjoy an early payday around the beginning of December to fund their holidays, but this often leads to a shortage of cash on Christmas. Since there is a cool-down of 6 weeks until the next payday arrives, people can often take the help of Christmas loans to meet their expenses.
Thorough research will help you navigate the world of Christmas loans and how long does it take to get a loan and sort the best option.
Christmas loans with guarantor
In Christmas loans with a guarantor, you apply to “guarantee your loan” together with an additional person, offer consumers a safer borrowing option.
Financial products tend to receive limited feedback during the holiday season, suggesting excellent borrowers’ customer service, favourable rates, and transparency. It means you can find Christmas loans with a guarantor if you’re looking for secure financing during Christmas.
How does the loan work?
Christmas loans with a guarantor are unsecured loans that require a second person to be a guarantor in your loan deal. This loan has long payment periods from 1-7 years with borrowing from 1,000 to 15000 pounds. There are plenty of lenders who supply online lenders with financial products in the UK from banks and other traditional financing institutions.
Usually, the loans are designed for people who fail to secure a Christmas loan by traditional means – either because of poor credit history or some other reason. Furthermore, the financial products enable you to access higher amounts, better rates, and flexible terms that are usually unavailable when you have poor credit.
So long as the individual is not financially connected to you (i.e., a spouse), almost anyone can be your guarantor. But for the person to be accepted with a guarantor application as part of your Christmas loan, he/she has to be:
- Over 21 years old when the loan starts.
- A UK citizen who has a good credit history and a stable source of income.
- A UK homeowner and has an active bank account.
It is important to note that Christmas loans are unsecured with a guarantor, which means there is no need to provide any asset as collateral for approval. To verify his or her personal and credit record, the lender will also need to perform certain checks on your guarantor and will allow him/her to provide bank statements, bank details, and ID evidence.
If you default or fail to keep to the repayments of your loan, the guarantor will be legally obliged to take them over. That’s why your guarantor needs to understand what his responsibilities are before he agrees to be part of a collateral loan deal with you.
Christmas loans with no guarantor
But is there any way you can enjoy the financing you need through Christmas loans without getting a guarantor involved? The reply is Yes.
Although banks and other lenders will not usually bear the risk in a loan deal without a guarantor, there are still plenty of lenders in the UK that will care for your loan application even if you are unable to provide an acceptable guarantor. For those who need a Christmas loan but have no guarantor to back up their demand, Christmas loans without a guarantor are the best choices. The financial products allow you to change your lifestyle during the festive season and bring financial relief. All you need to do is search the right lender online by examining their strategies and deals with no guarantor to get the Christmas loans benefits.
The different choices available in the UK for Christmas loans in 2020
Here is a quick overview of some of your Christmas loans without the option of a guarantor:
- Short term Christmas loans-If all you need is a small investment, from £ 100 to £ 2,000, which you can pay it back quickly after a couple of months, you can consider taking out short-term Christmas loans.
- Unsecured Christmas loans -If you have a solid credit rating and are looking to take out a large loan for Christmas with more extended repayment periods, you can look at unsecured Christmas loans as an ideal loan option.
- A line of credit – If you still don’t know exactly how much you’re going to need during the Christmas period, then you can also consider opting for credit lines. The no-guarantee Christmas loans will provide you with a credit limit you can draw.
When the question is how to get a loan for Christmas, plan the best answer. Start your research and know all your choices before the festive season to get a Christmas loan in UK in 2020.