Christmas, Holiday Different Loans. Apply Now

Need money for Christmas shopping?

Beginning November 12, 2020 for 20 days only we are offering a $2,000 Christmas loan special. This 2%* interest loan features a 20 month payback period and is only available until December 5th.

*Special 2% rate only applies to $2,000 Christmas loans. Payable in 20 months. Based on credit approval. See credit union for details. Promotion subject to change or cancellation with no prior notice. Offer valid November 12, 2020 through December 5, 2020.

Please call 740-775-3331 or visit one of our five convenient branches to get started

OTHERS

With the holidays approaching, you might be worried about how you’re going to pay for it all, even if you’re planning a socially distanced, scaled-back celebration this year.

You might be tempted by an offer in the mail or your inbox labeled “Christmas loans.” Don’t fall for it. This financial product surfaces every holiday season, and it’s a bad deal. Here’s why.

It could be a payday loan

A Google search for “Christmas loans” will return hundreds of websites promising you fast cash. But many Christmas loans are simply payday loans in festive disguise.

These lenders typically don’t check your credit, and they promise to send you money within 24 hours.

The catch? Your interest rate will be well into the triple digits, and you’ll have to pay back all the money, plus interest, in a few weeks or months.

For example, a $500 loan due in two weeks that costs $15 for every $100 borrowed equals an annual percentage rate of 390%, typical of payday loans.

You may also have to let the lender access your bank account to collect payments, leaving you vulnerable to costly overdraft fees if you don’t have the funds in your account.

Online Christmas loans aren’t cheap

If your credit is average, even non-payday loans aren’t a cheap option.

Christmas loans from online lenders are actually plain old unsecured personal loans by another name, with annual percentage rates up to 36%. The rate you qualify for depends on your credit score, credit history, debt-to-income ratio and cash flow.

There are two forms of financing you might encounter — personal loans meant for large, one-time expenses, and point-of-sale financing, designed for smaller purchases.

The lowest rates advertised by loan companies — which can go as low as 0% for point-of-sale financing — are attractive. But that doesn’t mean you’ll get a loan at that rate.

Rates on personal loans from online lenders such as LendingClub and SoFi can start at 10% or below, but you need good to excellent credit (690 or higher on the FICO scale) to qualify for such a low rate. Borrowers with fair or bad credit scores (300 to 689) can expect rates at the higher end of a lender’s range.

A $1,000 loan, due in two years at an APR of 20%, will cost you about $222 in interest.

Point-of-sale financing companies like Affirm and Klarna have rates ranging from 0% to 30%.

This loan will be much harder to get rid of than the ugly sweater your aunt gave you. You could be stuck paying off this Christmas when the holidays roll around next year — and maybe even the year after that. Personal loan terms typically span two to seven years, while point-of-sale companies offer repayment periods up to three years.

Still, if you decide to get a loan, we recommend pre-qualifying with multiple lenders to find the best rate, and make a plan to pay off your loan as quickly as possible.

Alternatives to Christmas loans

It’s not too late to pull together an affordable holiday, and though using your savings is usually best for discretionary expenses like holiday gifts, there are other options.

One of the best ways to borrow money is to charge your holiday expenses to a 0% APR credit card, particularly if you pay the balance back within the card’s introductory period, in which no interest is charged.

Look specifically for a card with an introductory period longer than a year; some cards offer up to 18 months. As long as you pay the full balance during this period, you’ll have borrowed that money interest-free.

Borrowers with good or excellent credit are most likely to qualify for a 0% APR credit card.

Apps like Earnin can also give you a small advance on your paycheck with no fees or interest, which could help you pay for a few, last-minute gifts. The app asks for a tip, which it says is optional, but adding a tip would be like adding interest to your interest-free advance.

It’s best to not get in the habit of using these apps regularly, but instead to use a budget (we recommend the 50/30/20 model) to get the most out of your paycheck.

As soon as the holiday dust settles this year, start saving for next year. In the end, the best gift you can give yourself is a debt-free Christmas.

A Gift That Keeps On Giving

A gift that keeps on giving…FOR THE LIFE OF YOUR LOAN! 3% Rate Reduction on all signature loans December 7th through December 12th. How does this work? Members will receive a 3% lower than where you would usually qualify. Example: If you are approved for 7.25% APR* your rate will be 4.25% APR.

1% rate reduction on all other loans, **exclusions apply. Members will receive a rate 1% lower than where you would usually qualify. Example: If you are approved for 2.99% APR* your rate will be 1.99% APR*. All rates and terms are based on qualifying criteria.

This offer is valid December 7, 2020 through December 12, 2020. *Annual Percentage Rate. Minimum $5,000 new money required. **Promotion does not include 1st or 2nd mortgage loans, home equity fixed rate loans or home equity lines of credit. Rates and terms are based on individual credit worthiness. Promotion subject to change or cancellation without prior notice. Other conditions may apply. See Credit Union for details. Current specials excluded.

Please call 740-775-3331 or visit one of our five convenient branches to get started

Have you applied yet for this one?

This year has been challenging for us all, and we’re here to help end the year on a high. After all, Christmas is still Christmas.

If you’ve been a member with us for over 3 months, you can apply for a loan of up to £3,000, depending on your current loan account status. (See Flyer below for more information)

We’re now accepting applications* ahead of the opening date on 2nd November.

Loan Promotion Criteria and Condition will apply

apply for a Christmas 2020 Loan today

or give us a call on 0208 698 2996, and we’ll be happy to help.

 

Another One: Make more memories this holiday season!

Avoid the stress of racking up debt on a higher-rate store credit card, pay off a high-rate debt, or even add the flexibility you need to your budget to cover everyday expenses.

The holidays quickly come and go, but the memories we make last a lifetime. Spend more time on what matters most & celebrating every moment with the help of a USC Credit Union Holiday Loan.

Cover everyday essentials, add flexibility to your budget, or even pay off that high-rate debt before the new year.

Focus on what matters most this season

  • Rates starting at 5.90% APR*
  • Borrow from $500 to $4,000
  • 12-monthly or 26 bi-weekly payments
  • Option to use USC Payroll Deduction
  • Great alternative to higher-rate credit and store cards
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