Best Holiday Financing in April 2025

Average consumer spending for the holiday season was expected to reach a staggering $902 per person in 2024, according to the National Retail Federation. If you don’t have the cash on hand to spend the season the way you’d like, consider holiday financing.

We reviewed the best personal loans for holiday spending and our top pick overall was SoFi, thanks to its high loan amounts, long repayment terms, and autopay discounts. Other excellent options include Upstart, though the best loan for you depends on your financial situation.

Compare holiday loan rates

Best holiday financing

Holiday financing refers to covering expenses related to the holiday season, from using a credit card to taking out an unsecured personal loan. Personal loans often offer financing at lower rates than credit cards, according Federal Reserve data, and can be used for a wide variety of purposes.

Compare personal loan rates to your credit card's rate before you run up a balance. The money could be in your account as soon as the same day you apply, and it’s quick to check customized rates without a hit to your credit. 

Just note that if you decide to move forward, most loan applications will show up as a hard inquiry on your report and could temporarily ding your score.

Methodology

Credible evaluated 31 lenders across 899 data points to find the best personal loans for holiday financing. We focused on criteria such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Credible’s team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

We chose the best lenders based on the following weighted categories:

• Rates and fees: 18%
• Loan terms: 18%
• Customer experience: 17%
• Eligibility: 14%
• Customer satisfaction: 10%
• Efficiency: 10%
• Options for poor credit and no credit: 9%
• Discounts: 4%

Each data point was sourced and verified by a senior editor to make sure it was accurate and up to date. Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

How to compare holiday financing lenders

Compare options from numerous lenders to find the best holiday loan for you. By prequalifying, you can see the annual percentage rates (APRs) you could get with a personal loan without any impact to your credit score. (Prequalification is not an offer of credit, and your final rate could be different once you apply.)

When comparing personal loan lenders, consider the following.

• Loan amounts: How much money do you need to borrow? Many personal loan lenders offer amounts ranging from $600 to $100,000 or more. Though the amount you'll qualify to borrow depends on your income, credit history, and other debt.
• Repayment term: The repayment term is the amount of time you have to pay your loan. Many lenders offer repayment terms from 1 to 7 years. The term you choose affects the size of your monthly payments. Shorter terms result in higher monthly payments, while longer terms result in lower monthly payments, but also more interest. No matter what repayment term you choose, make sure you can comfortably afford the payment for that span of time.
• APR: Your APR is the total cost of borrowing, which includes the interest rate and upfront fees. A lower APR will save you interest in the long run, while a higher APR will cost you more over the life of the loan.
• Fees: You can expect origination fees, late fees, or insufficient funds fees, depending on the lender. Note that origination fees are upfront and can reduce the loan amount you receive.
• Eligibility requirements: Review each lender’s eligibility requirements to ensure you qualify. Is your credit score higher than the lender's minimum? Is your annual income higher than the lender's minimum? You'll also need to have a low-enough debt-to-income ratio (DTI), which generally means under 36%. You can calculate DTI by dividing your minimum monthly payments by your gross monthly income.
• Customer reviews: When comparing holiday loans, look at customer satisfaction ratings and reviews on the Better Business Bureau (BBB) and Trustpilot.
• Customer service accessibility: If you prefer to manage your accounts via app, make sure the lender has one and that it has positive reviews. If you want the option to talk to a live person, look for live chat either in-app or on the lender's website. If you want to pick up the phone to talk, make sure the lender's number doesn't route you through an interminable phone tree.

What is a tax refund holiday loan?

A tax refund holiday loan is a type of loan that can be used for holiday financing, and is typically offered by a tax preparation service. Taxpayers who expect to get a tax refund can get a portion of the cash upfront using a tax refund holiday loan. 

So instead of waiting for the IRS to process your tax return, you can get an advance earlier and use the money to buy gifts, to buy a tree, to entertain, or whatever you'd like. The loan is automatically paid back along with any charges or fees when your tax refund arrives. However, charges can be steep.

Tax preparation service Jackson Hewitt offers a tax refund holiday loan starting in December. Its tax refund loan has an APR around 36% and is available from December 16 through January 12.

How to apply for holiday financing

If you’re interested in getting a holiday loan, here’s how:

1. Determine how much you need: Like with any loan, you only want to borrow what you need. So come up with a budget for your holiday-related expenses to determine the loan amount. Check your regular budget to know what monthly payment you can afford. 
2. Check your credit score: Your bank or credit card issuer may offer free credit score checks, or you can use Credible's free credit monitoring tool. See where your score stands so that you can meet any eligibility requirements and get a competitive rate.
3. Compare holiday loan lenders: Prequalify with at least five lenders, and compare loan amounts, APRs, repayment terms, monthly payments, and fees to start, along with customer satisfaction ratings, and customer service accessibility once you've found a few contenders. Choose a repayment term that gives you an affordable monthly payment.
4. Submit application: After narrowing down your options and choosing a holiday loan lender, gather your information and documents like pay stubs and ID to submit your application.

Check Out: How To Compare Personal Loans

Read More:

• What Are Holiday Loans With No Credit Check?
• How Long Does It Take To Get a Personal Loan?
• Personal Loan vs. Credit Card
• Best Christmas Loans
• Best Personal Loans for Bad Credit
• Best Personal Loans for Fair Credit
• Best Personal Loans for Good Credit

Disclosure: Some lending partners that participate in Credible’s comparison marketplace offer loans to borrowers with scores as low as 550. Borrowers with low scores will have fewer lending options than borrowers with higher credit scores.