What Are Holiday Loans?

A Holiday loan is money lent to individuals for the purpose of funding a holiday or vacation.

You can use a holiday loan to book a vacation, to buy Christmas presents, or to celebrate an anniversary or another special occasion. You can borrow as little as $1000 or as much as $9,000 or even $10,000. Holiday loans are commonly short-term loans that are required to be repaid over six to twelve months.

There are two types of holiday loans: secured and unsecured. A secured holiday loan uses collateral such as your house or vehicle. An unsecured loan of this type does not require collateral, but you risk higher interest rates without a cosigner.

The interest on such loans tend to be higher that that of a typical personal loan. However, the repayment terms of a holiday loan tend to be more flexible than that of payday loans or cash advances.

You may be able to obtain a holiday loan with poor credit history if you have adequate collateral that you can use to secure the loan. Furthermore, using collateral or using a cosigner can reduce the amount of interest charged to you.

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