What is a holiday loan? Get help navigating holiday finances this season
At a glance
- Holiday loans are personal loans used to cover seasonal expenses like gifts, travel, and meals; they typically offer fixed interest rates and quick access to funds.
- Holiday loan amounts and terms vary, ranging from a few hundred to thousands of dollars, with repayment periods from months to several years.
- The process for how holiday loans work generally starts with you filling out the lender’s loan application and if approved, the lender depositing proceeds to your bank account.
- With an alternative like the Emerald Advance® Loan*, you could get short-term relief with no payment required until March 31, 2026.
The holidays bring to mind idyllic scenes of cozy visits with friends and family, enjoying a special meal, and giving the perfect gifts. While your heart is set on making merry, your budget may have a very different idea. We get it. Between gifts for family and friends, costs for holiday meals and parties, and even travel, holiday spending can wreak havoc on your finances, especially with rising costs.
With all that to consider, it’s no wonder people feel overwhelmed about holiday finances at the end of the year. If you’re like some, you may be considering holiday loans or personal loans.
We’re here to help you weigh a few loan options, including the H&R Block Emerald Advance® Loan originated by Pathward®, N.A., so you can make the best financial decision for you. Read on to learn more.
What is a holiday loan?
A holiday loan is a personal loan that can be used around the end of the year to help pay for holiday spending and expenses (sometimes a holiday loan is thought of as a Christmas loan or Christmas holiday loan). The actual loan amount, interest rates, and repayment term for these loans can vary from lender to lender. For example, you may be able to borrow anywhere from a few hundred to thousands of dollars. And some loans may have repayment periods that are as short as a few months or as long as five or six years.
There are some commonalities too. These loans often have fixed annual percentage rates (APRs) and provide quick access to funds, if approved. Plus, personal holiday loans can be used for any number of holiday expenses: holiday shopping and gifts, travel expenses, food, party costs, and décor.
Apply for an Emerald Advance® Loan today
Holiday loan alternatives
There are many reasons people choose to explore this type of loan during the holidays. Perhaps credit cards are not an option, or maybe unexpected expenses have cropped up depleting savings. In cases where you just need to get through a few tight months, taking out a larger or longer-term loan may not make sense and especially so if you can’t meet the repayment requirements.
For those looking for a simple way to stretch their budget or just add some breathing room around their holiday finances during an expensive time of the year, there are alternatives to holiday loans, such as the Emerald Advance® Loan.
The Emerald Advance® Loan, a short term, personal loan, may be an option if you just need a little extra money to get by instead of taking out a big loan. (Hot take: Borrowing only the loan amount you need is one of our tips for better money habits.)
You could get help with holiday expenses with an Emerald Advance
You can apply for the Emerald Advance® Loan at participating H&R Block locations from Nov. 3 to Dec. 31, 2025. If approved, you could get up to $1,500 to help with holiday expenses, unexpected bills and more. There are no required monthly payments — or any payments due at all — until March 31, 2026, when the full payment of the loan is due. Plus, there’s no impact to your credit score to apply.
With Emerald Advance® Loan, you could get the boost you need to make it through the holiday season.
Apply for an Emerald Advance® Loan today
Get the details about the Emerald Advance® Loan, including the loan application and loan approval process and see how it could help you with some breathing room during the holidays. Or, make an Emerald Advance® Loan appointment to apply now.
Holiday Loan FAQ
What is a holiday loan and how does it work?
A holiday loan is a personal loan that can be used around the end of the year to help pay for holiday spending and expenses. Holiday loans work similarly to personal loans. In most cases, you fill out the lender’s loan application to get started. If you’re approved, the loan proceeds are deposited to your bank account, or they may have other methods to disburse the proceeds. Then over time, you pay back the loan in installments, often as a monthly payment.
Note: The Emerald Advance Loan is not a holiday loan. If approved, you could get up to $1,500 with no payments due until March 31, 2026.
How do holiday loans compare to credit cards?
When deciding between holiday loans and credit cards for your spending needs, consider the following key differences:
- Interest rates: Holiday loans often have fixed interest rates, while credit card rates can be variable. According to the Federal Reserve as of August 2025, the average 24-month interest rate for a personal loan was 11.14% and the average interest rate for credit cards carrying a balance was 22.83%. Keep in mind, your rate may be higher or lower based on your credit.
- Repayment terms: Loans typically provide a lump sum of cash followed by a fixed repayment schedule, whereas credit cards are revolving lines of credit that can be repeatedly drawn from and repaid. The revolving nature of credit cards may lead to longer payoff periods depending on how frequently the card is used and whether the borrower makes more than the minimum monthly payment.
- Fees: In addition to interest, as described above, loans and credit cards both typically charge late fees for missed payment. Loans may also have origination or application fees, while credit cards often charge annual fees. It is important to review the applicable fee schedule before obtaining a loan or a credit card.
- Credit impact: Both options can affect your credit score. Depending on your credit profile, loans may help diversify your credit mix if managed properly.
Holiday loans may be better for larger, one-time expenses, while credit cards may suit smaller, recurring purchases, or those who want to take advantage of the promotional 0% APR periods.
Are there fast holiday loans with no credit check?
While there may be lenders offering fast holiday loans, “no credit check” loans are rare and often come with significant caveats:
- Alternative lenders: Some online lenders and payday loan providers offer quick decisions without traditional credit checks. However, they may use alternative credit scoring methods and/or charge higher interest rates.
- Secured loans: If you have collateral, such as a vehicle or property, you might qualify for a secured loan with more lenient credit requirements.
It’s essential to review the loan terms, including interest rates and fees, before committing.
How do you get approved for a holiday loan?
To get approved for a holiday loan, you’ll typically need a steady income, a good credit score, and a manageable debt-to-income ratio. The process usually involves gathering documents like proof of income and identification, then researching and comparing lenders to find the best terms for your needs.
*H&R Block Emerald Advance® Loan originated by Pathward®, N.A. Subject to eligibility and credit approval. Annual Percentage Rate (APR) is 35.9%. Loan amounts vary from $350-$1500. If approved, loan proceeds will be disbursed as directed to prepaid card or checking account at Pathward. Additional terms and conditions apply, see account agreements for details. Offered for a limited time at participating locations.
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