December is a time of year with so many holidays and gatherings. With all the food, celebrations, visitors, and gifts it, can also be an expensive month. It’s easy to get carried away and find yourself overbudget. The National Retail Federation released a survey this year reporting that Americans expect to spend an average of $875 on food, decorations, and holiday shopping.
What’s the best way to stay within your budget this holiday season? While each person has a unique set of circumstances and budgets, there’s a noticeable trend of people using unconventional methods to fund their holiday expenses, including personal loans. Before applying for a loan, it’s important to carefully consider your budget and understand what is expected when you take out a loan.
While taking out a loan to cover holiday expenses might seem unconventional, there are practical and cost-effective reasons to consider utilizing personal loans this holiday season.
Customizable for Your Needs
For one, you are in complete control of how much you borrow. At Academy Bank, our Express Loans can range from $250 all the way to $15,000. So, if you want to purchase fancier gifts without using your credit card, a personal loan may be a smart option. Personal loans offer fixed interest rates which tends to be lower than the average interest rates for credit cards, an Express Loan may be a better fit for your budget.
Staying on Budget
If you’re worried about getting caught up in the magic of the holidays and overspending, a personal loan might be a helpful way to cap your budget. You can decide ahead of time how much you want to spend and set it to reflect that number. This method is effective in helping you stay on budget and cover holiday expenses, in addition to managing monthly bills and costs.
Building Your Credit Score
A nice perk that comes with financing your holiday with a personal loan the chance to build your credit history. If you know you can confidently make payments on time for the duration of the loan, this may be a good decision for you. Paying your loan on time and in full can help bump up your credit score and make big purchases a little easier in the future.
More Time to Pay Off Your Loan
Unlike credit cards, which can add interest to your debt for each month you can’t pay in full, loans are meant to be paid off for longer periods. The timeline to fully pay off a personal loan is usually longer than others depending on the lending terms. So, if you want to pay less each month and spread it over a longer period of time, a personal loan is a good way to go.
You can apply for an Academy Bank Express Loan in minutes online. All you have to do is complete an online application. It’s really that easy. Worried about your credit score, or don’t have credit? Academy Bank’s Express Loans are not always approved solely on “creditworthiness,” but with a satisfactory account relationship. So even if you have less-than-perfect credit history you may still be able to get a loan.
With personal loans, you have the freedom to spend your money as you see fit. Whether it’s having the best gifts under the tree, or traveling to surprise Grandma for the holidays, you can make the holidays magical without breaking the bank.
Subject to credit approval. Origination fee applies.