What is a Black Friday loan?

During the Black Friday sales, many lenders are prepared to assist American consumers in financing their spending for Thanksgiving and Christmas. They offer immediate funds for purchasing gifts and electronics or covering travel expenses. These loans can be unsecured personal loans with varying terms and interest rates. Nevertheless, these loans come with responsibilities and should be repaid as strictly as any other loan.

This article will explore everything you need to know to effectively utilize Black Friday loans and avoid overspending even a single dollar beyond your financial plan.

Features

1. Specialized Promotions. Black Friday loans can come with promotions, discounts, or incentives tailored for the holiday shopping season.

2. Short-Term Repayment Periods.Black Friday loans often have shorter repayment periods, allowing borrowers to repay the loan quickly and avoid long-term debt.

3. Quick Funding. Lenders aim to provide quick funding for Black Friday loans, ensuring borrowers have access to the funds they need in a timely manner to take advantage of the holiday sales.

Pros and cons

How to get a Black Friday loan?

1. Research lenders.Look for lenders that offer Black Friday loans or personal loans with favorable terms during the holidays. You can search online or check with local banks and credit unions for suitable options.

2. Check eligibility criteria. Review the eligibility requirements set by the lenders to understand which loan you can qualify for. This may include factors such as credit score, income level, employment history, and any additional criteria specific to the lender.

3. Compare loan terms.Study the loan terms, including APR, repayment periods, and any associated fees or charges. Compare different lenders to find the most competitive options you can comfortably afford.

4. Prepare the required documents.The lender can request an ID card, proof of income, bank statements, and any other social and financial documentation to evaluate your creditworthiness, as they expect Black Friday shoppers to be able to repay the loan on time.

5. Apply.Fill out the request form on the lender's secure website or at their office. The lender will then review and assess your eligibility, which may include conducting a credit check and verifying the information provided."

6. Wait for approval.The approval process duration varies by lender, but typically it lasts within a business day.

7. Receive funds. The lender will transfer the loan funds to your designated bank account if approved. Usually, it happens as quickly as one business day.

Best places to borrow a loan with bad credit

Upgrade

Upgrade is a prominent online lender that offers personal loans to borrowers with bad credit. They provide loan amounts ranging from $1,000 to $50,000, making them suitable for various financial needs. The minimum credit score required by Upgrade is relatively low, typically around 580. This makes it accessible to individuals with a less-than-stellar credit history. One notable advantage of Upgrade is its flexible repayment terms, which can extend up to five years. This longer repayment period allows borrowers to manage their monthly payments more effectively. However, it's worth noting that Upgrade charges origination fees ranging from 2.9% to 8%. Additionally, while they do not have any prepayment penalties, borrowers should be aware of the interest rates, which can be relatively high for individuals with bad credit.

Upstart

Upstart is another online lender that specializes in providing loans to borrowers with bad credit. Their loan amounts range from $1,000 to $50,000, allowing borrowers to access the funds they need for various purposes. Upstart utilizes a unique underwriting model that takes into account factors beyond just credit scores, making it more inclusive for individuals with limited credit history or low credit scores. The minimum credit score required by Upstart is typically around 580. One of the significant advantages of Upstart is its soft credit check, which means that applying for a loan does not negatively impact your credit score. Repayment terms offered by Upstart range from three to five years, providing borrowers with flexibility. While they do charge origination fees of up to 8%, it's important to note that they don't impose any prepayment penalties. However, borrowers with bad credit should expect higher interest rates.

LendingPoint

LendingPoint is a bad credit lender that offers personal loans ranging from $2,000 to $36,500. They consider borrowers with credit scores as low as 585, making them accessible to individuals with bad credit. LendingPoint prides itself on providing fast funding, often disbursing funds within one business day. Their repayment terms typically range from two to four years, allowing borrowers to tailor their loan duration according to their needs. It's important to note that LendingPoint does charge origination fees that can be up to 6%. They also have a slightly higher interest rate compared to traditional lenders, which is to be expected when borrowing with bad credit. However, they do not impose any prepayment penalties, enabling borrowers to pay off their loans early if they desire.

Universal Credit

Universal Credit is an online lender that specializes in bad credit loans, offering loan amounts ranging from $500 to $15,000. Their minimum credit score requirement is relatively low, typically around 550, making them accessible to borrowers with poor credit. Universal Credit offers repayment terms ranging from six months to five years, allowing borrowers to choose a duration that aligns with their financial situation. While they charge origination fees, the amount may vary based on the borrower's creditworthiness. One notable advantage of Universal Credit is its willingness to consider applicants who have previously filed for bankruptcy. However, borrowers should be aware that the interest rates associated with bad credit loans from Universal Credit may be higher compared to traditional lenders.

OneMain Financial

OneMain Financial is a well-established lender that specializes in bad credit loans. They offer loan amounts ranging from $1,500 to $20,000, making them suitable for various financial needs. OneMain Financial requires a minimum credit score of 600, slightly higher than some of the other lenders in this category. However, they have a reputation for considering other factors beyond credit scores when evaluating loan applications. OneMain Financial provides repayment terms that range from two to five years, allowing borrowers to select a term that fits their budget. It's important to note that OneMain Financial charges origination fees, which can vary depending on your residence state. While they do not disclose their interest rates upfront, borrowers with bad credit should expect higher rates.

Avant

Avant is an online lender that specializes in offering personal loans to individuals with bad credit. They provide loan amounts ranging from $2,000 to $35,000, catering to various financial needs. Avant has a minimum credit score requirement of 580, making them accessible to borrowers with less-than-ideal credit histories. Repayment terms offered by Avant typically range from two to five years, giving borrowers flexibility in managing their monthly payments. While Avant charges origination fees up to 4.75%, they do not impose any prepayment penalties. It's important to note that Avant's interest rates can be relatively high for borrowers with bad credit. However, they provide a transparent prequalification process that allows borrowers to check their potential loan offers without affecting their credit scores.

Requirements and conditions

Requirements

1. Creditworthiness. Lenders typically assess your credit history and credit score to determine your eligibility for a Black Friday loan. A higher credit score may increase your chances of approval and help secure better loan terms.

2. Income verification. Lenders may require proof of a stable income source to ensure you have the means to repay the loan. This can involve providing pay stubs, bank statements, or tax documents.

3. Age and residency. You must meet the legal age requirement and be a USA citizen or resident to qualify for a Black Friday loan.

Conditions

1. Loan amount and terms. The maximum loan amount and repayment terms vary among lenders. Some lenders may have minimum and maximum loan limits, while others may offer flexibility in choosing the loan duration.

2. Interest rates and fees.Black Friday loans can have varying interest and associated fees, such as origination fees or prepayment penalties. It's crucial to review and understand these charges to assess the total cost of borrowing.

3. Repayment schedule.Lenders will provide the frequency of payments (monthly, bi-weekly, etc.) and the loan duration. Make sure you understand these terms and can meet the repayment obligations.

4. Exchange option. Note that the terms and conditions regarding exchanges will vary depending on the lender's policies. While some lenders may allow exchanges or returns on items purchased using the loan funds, others may have restrictions or limitations in place.

Ways to receive the money

1. Electronic transfer.The funds can be electronically transferred to a designated account or payment platform, allowing you to use the funds for your Black Friday purchases online or through digital payment methods.

2. Check. Some lenders may issue a check for the loan amount, which you can then deposit into your bank account or use to make purchases.

3. Prepaid debit card.In certain cases, the lender may provide the loan funds on a prepaid debit card, which you can use for your Black Friday shopping online or in-store.

Things to pay attention to

1. Is this sale unique? Ensure you are sealing only the best deals when you spend the borrowed money. Many Thanksgiving sales are not necessarily exclusive to the holiday and are available in stores occasionally throughout the year. Consider whether it's possible to wait and purchase the item you're eager to get without spending borrowed funds during the next sale.

2. Does the item have the lowest price? While Black Friday during the Christmas holidays is known for offering delicious prices and deals, it does not guarantee that every item will be available at its lowest price. Some retailers may use marketing tactics, such as inflating original prices or offering limited quantities of heavily discounted items, to create the perception of the best deal. Researching and comparing prices beforehand help you shop smart and get the best value for your money.

3. Can you really afford the item? It's always better to only buy items you can afford, putting you at a lower risk of accumulating debt. By making informed and responsible purchasing decisions, you can prioritize your financial well-being and avoid unnecessary financial stress in the long run. This approach allows you to align your spending with your actual demand.

How to repay a Black Friday loan?

1. Determine the loan amount. Start by calculating the precise amount you borrowed. Pay attention to any associated interest charges and fees that may apply to get a comprehensive understanding of your total financial obligation.

2. Create a repayment timeline.Set a specific timeframe for repaying the loan. This could be a few months or longer, depending on your financial situation and the loan terms.

3. Always have money for loan payments.Grant a portion of your monthly budget specifically for loan repayments. Considering your other financial obligations, ensure that this amount is realistic and manageable.

4. Set up automatic payments. It's helpful to set up automatic payments from your bank account to avoid missing paybacks and incurring late fees.

5. Minimize unnecessary expenses.Identify areas where you can reduce discretionary spending to free up extra funds for repayment.

6. Consider additional income sources.Explore opportunities to increase your income, such as taking on a part-time job or freelancing, to accelerate your loan repayment process.

7. Stay organized and track progress.Keep track of your loan payments and monitor your progress towards paying off the loan to stay motivated and make adjustments if needed.

Alternatives

1. Credit card. Using a credit card can be a good alternative to a Black Friday loan, depending on your financial situation and preferences. Here are some reasons for using an existing credit card instead of getting a new loan. Many credit cards come with rewards programs, cashback offers, or special discounts that can provide additional value when making Black Friday purchases. These rewards can help offset the costs or provide extra savings. Rewards programs may provide benefits such as cashback, discounts, or loyalty points that can be earned on purchases made during Black Friday or throughout the year. Explore different credit card options or rewards programs to maximize your benefits while shopping during the Black Friday sales. If you already have a credit card with a sufficient credit limit, using it for your Black Friday shopping may be more convenient, depending on your individual spending demand, than applying for a separate loan. Credit cards offer shoppers flexibility in terms of repayment. You can choose to pay off the full balance each month to avoid interest charges or carry a balance and make smaller payments over time. Despite the advantages that credit cards can bring into your life, note that they have their drawbacks like any financial instrument does. The main one is the high APR for those who can't repay on time. If you can't pay off the balance in full each month, the interest charges on a credit card may be higher than the interest rates of a dedicated Black Friday loan.
2. Installment loans can be an alternative to Black Friday loans because they provide a fixed amount of money upfront that can be used for holiday shopping. These loans offer structured repayment plans with fixed monthly payments, making budgeting and managing your expenses easier. Additionally, installment loans may have lower APRs and longer repayment terms, providing more flexibility and potentially reducing the financial burden compared to short-term Black Friday loans.

Ways to enhance financial capability for shopping

If you are already experiencing a lack of money for holiday sales, getting a Black Friday loan for shopping suggests a challenging financial situation due to insufficient savings, reliance on borrowed money, and the potential difficulty in managing repayments resulting in bad credit scores.

By exploring the alternatives below, you can find ways to manage your holiday expenses without relying on a Black Friday loan.

1. Saving in advance.Start saving for the holiday season well in advance by setting aside a small amount of money each month. This way, you'll have funds available when the sales arrive.
2. Create a holiday budget. Determine how much you can afford to spend on holiday shopping and create a budget accordingly. Prioritize your purchases and focus on the most important items.
3. Find additional sources of income.Consider taking up a temporary part-time job, freelancing, or doing odd jobs to earn extra money specifically for holiday expenses.
4. Sell unused items.Look around your home and identify any unused items that you can sell. Use online platforms or local marketplaces to sell these items and generate extra cash. Perhaps you can sell unused items that hold value for someone else and join those who have succeeded in securing Black Friday deals.
5. Consider taking advantage of discounts and rewards. Look for discounts, coupons, and loyalty rewards from grocery stores and other retailers during the holiday season. Maximize your savings by utilizing these deals while staying within your budget.
6. Prepare homemade gifts or experiences.Instead of buying expensive gifts, consider making personalized homemade gifts or planning memorable experiences with your loved ones. This can be a more meaningful and cost-effective way to celebrate the holidays than simply buying all the gifts from a shop and feeling rushed.

Editorial opinion

Important

How to Choose a Lender

1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

3. Carefully review all the terms and conditions of your payday loan contract.

4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Additional Resources

• What Credit Score Do You Need for a Personal Loan?
• How to Get a Personal Loan in 7 Steps
• Personal Loan Pre-Approval
• How to Apply for a Personal Loan
• Personal Loan vs Personal Line of Credit

Sources

• Bankrate. Black Friday 2025: Loan risk management statistics05.10.2023
• Nerdwallet. What Makes a Black Friday Deal Worth It?05.10.2023
• Forbes. Best Credit Cards For Black Friday And Cyber Monday Of 202505.10.2023