{"id":63286,"date":"2026-10-15T14:53:06","date_gmt":"2026-10-15T19:53:06","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=63286"},"modified":"2026-10-16T16:09:05","modified_gmt":"2026-10-16T21:09:05","slug":"holiday-loans","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/around-block\/financial-products\/holiday-loans\/","title":{"rendered":"Holiday loans: Financing options for seasonal expenses"},"content":{"rendered":"\n

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<\/a> 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.<\/p>\n\n\n

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With all that to consider, it\u2019s no wonder people feel overwhelmed about holiday finances<\/a> at the end of the year. If you\u2019re like some, you may be considering holiday loans or personal loans.<\/p>\n\n\n\n

We\u2019re here to help you understand these loan options so you can make the best financial decision for you. Plus, we\u2019ll cover an alternative\u2014the H&R Block Emerald Advance\u00ae Loan originated by Pathward\u00ae, N.A. Read on to learn more.<\/p>\n\n\n\n

What is a holiday loan?<\/h2>\n\n\n\n

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 terms 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.<\/p>\n\n\n\n

There are some commonalities too. These loans often have fixed annual percentage rates (APRs)<\/a> 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 d\u00e9cor.<\/p>\n\n\n\n

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Apply for an Emerald Advance\u00ae<\/sup> Loan today <\/h3>
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Make an appointment<\/a><\/div>\n<\/div>\n<\/div><\/div><\/div>\n\n\n\n

How do holiday loans work?<\/h2>\n\n\n\n

Holiday loans work similarly to personal loans, but each lender will have its own holiday loan eligibility requirements. In most cases, you fill out the lender\u2019s loan application to get started. If you\u2019re approved, the loan proceeds are deposited into your bank account, or the lender may have other methods to disburse the proceeds. Then, over time, you pay back the loan in installments, often as a monthly payment.<\/p>\n\n\n\n

Holiday loans online<\/h3>\n\n\n\n

Some financial institutions may offer holiday loans online, letting you apply from your phone or computer instead of visiting a branch. The convenience can be appealing when your schedule is already packed with shopping and gatherings.<\/p>\n\n\n\n

That said, online holiday loans aren\u2019t typically widely available. A lender that advertises holiday loans online may only extend the option to certain customers\u2014for example, existing account holders or borrowers who meet specific credit criteria.<\/p>\n\n\n\n

Holiday financing options to consider<\/h2>\n\n\n\n

Personal loans vs. holiday loans<\/h3>\n\n\n\n

Holiday loans are generally a type of personal loan. The distinction, where it exists, is mostly about timing and purpose: a holiday loan is geared toward end-of-year spending, while a general personal loan can be used at any time of year.<\/p>\n\n\n\n

Both are typically installment loans with a fixed repayment schedule, and both can be used to cover seasonal expenses like gifts, travel, and meals. In fact, some financial institutions don\u2019t even label these products as \u201choliday loans\u201d\u2014they\u2019re marketed as personal loans that you happen to use during the holidays.  <\/p>\n\n\n\n

Credit cards vs. holiday loans<\/h3>\n\n\n\n

When you\u2019re weighing credit cards against holiday loans, it\u2019s important to understand how they work, so you can make the choice that\u2019s right for you.<\/p>\n\n\n\n

<\/th>Holiday loans<\/th>Credit cards<\/th><\/tr><\/thead>
How you receive funds<\/td>Lump sum<\/td>Revolving credit you can use when you need it\u2014letting you repay and reuse repeatedly<\/td><\/tr>
Interest rates<\/td>Often fixed<\/td>Often variable<\/td><\/tr>
Repayments\/Payments<\/td>Set repayment term, giving you a clear payoff date to plan toward<\/td>Allows you to carry a balance from month to month, which can stretch out payments but add to your interest cost<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

How to choose the right holiday financing option<\/h2>\n\n\n\n

Choosing the right holiday financing option depends on your budget, repayment timeline, and overall financial situation. Before borrowing, consider these key factors as you compare holiday loans and financing options:<\/p>\n\n\n\n