Yes, you can get a Black Friday loan as these are unsecured and fast-cash loans. Most private lenders offer these loans during the holiday season.
Black Friday loans come with some risks as well as advantages for the borrowers.
What is a Black Friday Loan?
A Black Friday loan is a type of personal loan that borrowers take for shopping needs on this special day.
Shoppers spent nearly $887 billion on Black Friday last year. Around 43% of shopping came through smartphones.
Most of the shoppers used credit cards, loan apps, or any other form of borrowing.
The APR on Black Friday Loans is usually high but it largely depends on the credit score of the borrower. Typical APR on Black Friday loans ranges from 3% to 40% from regulated lenders.
Black Friday for the year 2022 falls on November 25, one day after Thanksgiving. However, like in the previous couple of years, retailers are likely to announce sales and discount deals earlier than that date.
Can I Get a Black Friday Loan?
Getting a Black Friday loan means qualifying for an unsecured personal loan. Like any other type of personal loan, you can qualify for this loan with any credit score.
Black Friday payday loans come from private lenders mostly and they charge higher APRs as compared to banks. These loans are readily available and borrowers do not need complicated documentation like other commercial loans.
Some credit cards and banks may also offer Black Friday loans.
Personal loans from these regulated bodies will usually cost you less than those offered by private lenders.
Black Friday discounts can be worth taking advantage of. If you are looking to make a large purchase with huge savings, a Black Friday loan may make sense. always be responsible though, and make sure you can comfortably afford your loan repayments! No purchase is worth getting into risky debt for.
What are the Risks of a Black Friday Loan?
Easy access to Black Friday loans does not mean these loans are risk-free. In practice, many borrowers overspend when they have easy access to fast loans.
Some risks of Black Friday Loans include:
- These loans charge higher interest rates as compared to other loans.
- Some lenders may charge loan fees as well.
- Personal loans can affect your credit score with hard inquiries.
- You may accrue more interest than planned if you can’t repay on time.
- These loans can lure in to spend more on unnecessary items.
- Your ability to repay may change and can push you into a debt cycle.
When You Should Consider a Black Friday Loan?
Black Friday loans are not for everyone. If you plan ahead of time, you can avoid borrowing at all.
You should only consider Black Friday loans if you can afford to repay the installments comfortably. Black Friday deals may be tempting, but if you are already struggling with your finances, it’s best to avoid purchasing new items.
You can consider this type of loan for a significant purchase like a kitchen appliance or furniture with long-term use that you need. It can make sense to take out a loan to buy a needed item much cheaper during the Black Friday promotion, and pay back your loan on your next payday.
How to Make the Best Use of Your Black Friday Loan?
Black Friday loans are risky but if you plan well, you can make the most out of them.
- Compare lenders and their Black Friday loan offers.
- Look for lower APRs and loan fees when analyzing your options.
- Create a repayment plan and evaluate how much you can afford to borrow with your current monthly income.
- Borrow only what’s necessary to buy the item you really need with a high Black Friday discount.
- Pay your installments on time to avoid late-fee penalties and accumulating interest costs.
