The holiday season brings gifts, travel, family dinners and a December that can stretch any budget. If you'd rather not drain your savings or run up a high-interest credit card, a personal loan may help. Some lenders call this a holiday or Christmas loan. Here's how it works, the pros and cons, and the options Oklahoma Central Credit Union members have for getting cash for Christmas this year.
Table of Contents
- What is a holiday loan?
- OCCU personal loans for the holidays
- Pros of using a personal loan for the holidays
- Cons of using a personal loan for the holidays
- Is a holiday loan a good idea?
- How to apply for a personal loan at OCCU
- Alternatives to borrowing for the holidays
- Holiday loan FAQ
What is a holiday loan?
A holiday loan, also called a Christmas loan, is a personal loan you use for seasonal expenses. Lenders often use the name in fall and winter marketing, but the loan works like any other personal loan. You borrow a fixed amount, receive it up front, and repay it in fixed monthly payments.
People use personal loans during the holidays to cover:
- Christmas and Hanukkah gifts
- Travel to see family
- Hosting holiday meals and gatherings
- Year-end bills that land at the same time as holiday spending
Personal loans can be unsecured, backed only by your signature, or secured, backed by money you already have in savings or a certificate.
OCCU personal loans for the holidays
Oklahoma Central members can use a personal loan for any holiday expense. Current options include:
|
Unsecured personal loan |
Share secured loan |
|
|---|---|---|
|
Rate |
Competitive fixed rates |
Competitive rates |
|
Loan amount |
Up to $35,000 |
From $500 |
|
Term |
Up to 60 months |
Up to 60 months |
|
Collateral |
None |
Your OCCU savings or certificate |
|
Prepayment penalty |
None |
None |
|
Best for |
Members with established credit |
Building or rebuilding credit |
Rates change, so check today's personal loan rates before you apply.
Apply online, visit any OCCU branch in the Tulsa area, or call 918-664-6000 and select option 2.
Pros of using a personal loan for the holidays
Lower rates than most credit cards. Personal loans often carry lower interest rates than credit cards, so financing holiday purchases with a loan can cost less over time. See current OCCU rates.
A fixed payoff date. Unlike a card balance that can linger for years, a personal loan has a set term and a fixed payment. You know exactly when the holidays will be paid off.
No collateral required. With an unsecured loan, you don't have to pledge savings or property.
A simple application. Apply online, in person, or by phone. Members get the full loan amount up front.
A chance to build credit. On-time payments are reported to the credit bureaus and can help strengthen your credit history.
Cons of using a personal loan for the holidays
It adds to the cost of the holidays. Every loan has interest and may have fees. The longer you carry the balance, the more you pay. Borrowers with lower credit scores may receive higher rates.
It raises your debt-to-income ratio. A new loan increases your debt-to-income ratio (DTI). If you plan to finance a car or home early next year, that could affect your approval or rate.
Late payments hurt your credit. Payment history is reported to the credit bureaus, so missed payments can lower your score.
You must qualify. Approval depends on your credit and income. If a personal loan isn't the right fit, the alternatives below may help.
Is a holiday loan a good idea?
Using a personal loan for the holidays makes the most sense when you:
- Know exactly how much you need and borrow only that amount
- Can comfortably fit the monthly payment into your January budget
- Plan to pay it off quickly, ideally before next holiday season
- Would otherwise use a higher-interest credit card or payday loan
If you're unsure, use OCCU's loan calculators to estimate your payment, or talk with one of our free financial counselors before you borrow.
How to apply for a personal loan at OCCU
- Set your holiday budget. List gifts, travel and hosting costs, then subtract what you can pay in cash.
- Check your credit. OCCU members can view their credit score and reports for free.
- Choose secured or unsecured. Unsecured needs no collateral. Secured can be easier to qualify for and helps build credit.
- Apply for a personal loan. Apply online, at a branch, or by phone at 918-664-6000.
- Understand your terms. Review your annual percentage rate (APR), term, fees and monthly payment before you sign.
Not a member yet? Join Oklahoma Central first, then apply.
Alternatives to borrowing for the holidays
- Skip-a-Pay. Eligible members may be able to skip a payment on an existing OCCU loan to free up holiday cash. Learn about Skip-a-Pay.
- Share secured loan. Borrow against your own savings at a competitive rate while your savings stay put. See share secured loans.
- Start saving for next year now. Set up an automatic transfer into a savings account so next December is already covered.
- Avoid payday loans. Short-term lenders that advertise quick holiday cash often charge far higher costs than a credit union personal loan.
Holiday loan FAQ
Is a holiday loan the same as a personal loan?
Yes. A holiday or Christmas loan is a personal loan used for seasonal costs like gifts, travel or hosting. There's no separate holiday loan application at Oklahoma Central Credit Union. You apply for a standard personal loan and use the funds however you need.
How much can I borrow with an OCCU personal loan?
Unsecured personal loans at OCCU go up to $35,000 with terms up to 60 months. Secured loans start at $500. Most holiday borrowers need far less, and borrowing only what you can repay quickly keeps interest costs low.
Can I get a holiday loan with bad credit?
A share secured loan, backed by money in your OCCU savings or certificate account, can be easier to qualify for and helps build credit with on-time payments.
Is there a prepayment penalty?
No. OCCU unsecured personal loans have no prepayment penalty, so you can pay off your loan early and save on interest.
Do I need to be a member to apply?
Yes. Personal loans are available to Oklahoma Central Credit Union members. You can join online, at a branch, or by calling 918-664-6000.
Make this holiday season a little lighter
A personal loan can ease the pressure of the season when you borrow wisely and have a plan to pay it back. Ready to talk through your options? Apply for a personal loan online, schedule an appointment, or call 918-664-6000.
