Not everyone has good credit, and with the credit markets tightening up due to the financial crisis, many borrowers are finding it harder and harder to obtain the loans they need to pay for upcoming holiday expenses. You can get a loan to make this holiday a bright and merry one. With a bit of legwork, getting your holiday loan is not as hard as you might think.

Meet All Holiday Expenses With Ease

Holiday loans are written for the purpose of paying expenses that are normally incurred during the holiday season. You might use your holiday loan for gifts, trimmings, food, and more. Many borrowers use their holiday loans to pay for airfare or other expenses to return to their hometown during the holidays. Others elect to go somewhere sunny and warm to ring in the New Year, or to take a cruise. Whatever purpose you have in mind for your holiday loan, there are lenders who can grant you the money you need today.

A holiday loan in essence is a personal loan. This type of loan can be either secured or unsecured. There are significant differences in the two types.

Two Types Of Holiday Loans

A secured loan is a loan that is secured with a lender when you pledge collateral for the amount of the principle loaned to you, plus interest. You might want to put your house or your late model automobile up as collateral. By taking out a secured holiday loan, you will get a lower interest rate during the life of the loan and possibly lower monthly payments.

An unsecured holiday loan is a bit harder to get, especially for those with bad credit. An unsecured loan is a riskier type of loan instrument for any lender because they are counting on your personal integrity in place of any collateral, and since they do not know you personally, they consider everyone a risk. You can lessen your appearance of being a risky venture by applying with a cosigner who has better credit than you do and is willing to pay your holiday loan payments if you fail to do so for any reason. You will pay more interest for an unsecured holiday loan than its secured counterpart, but having a cosigner will reduce the interest rate quite a bit, and also may lower your monthly payment amount and allow you a longer term to repay your holiday loan.

Amounts Of $10,000 Or More

You can ask for any amount that you see fit when you take out a holiday loan. Most holiday loans start out at $1000, and may be written in amounts as much as $10,000. The amount that you are approved for is based upon your ability to repay the lender, so married couples should always include both incomes on the loan application if seeking higher amounts.