The holiday season is a prime time for your credit union to make a difference in the lives of its members. With diverse needs among credit union members, it's crucial that you offer tailored loans to meet their unique requirements. This is particularly significant as the year draws to a close and the holiday season approaches.
Keep Reading For...
- Holiday spending statistics & facts
- 6 best loans to offer this holiday season
- Bonus holiday offer your members will love
Holiday Expenses
According to the National Retail Federation, Americans spend an average of $875 for the holidays. This amounts to around $275 billion this year.
These are not just statistics. These numbers represent a huge opportunity for your credit union. Take this opportunity to give your members what they want this holiday season.
Best Loans for the Holidays
Christmas Loans
Christmas loans, otherwise known as holiday loans, tend to be unsecured personal loans that members take out in order to help pay for certain holiday-related expenses like gifts.
These loans are often anywhere from $1,000 to $100,000 in size and can have an APR of anywhere between 6% and 36%. It can be a great way to help members with any big expenses they need to make at the end of the year, too.
Personal Loans
Personal loans are a lot like holiday loans in that they're designed to help members cover big expenses, but they do so with more flexibility.
These can also be anywhere from a few thousand dollars to $100,000 or more with variable interest rates. If someone needed to pay for a kitchen remodel or a semester of their child's college, a personal loan would be a great way to help them do it.
Quick Loans
Your members can greatly benefit from quick loans, which are processed and disbursed rapidly. These loans are designed to provide fast access to funds, and the application process is usually streamlined with minimal documentation requirements. Quick loans are often associated with short-term financing solutions.
Check out FLEX's quick loan software integration here!
Auto Loans
If someone needs help buying a car, they typically turn to auto loans in order to get behind the wheel of their new vehicle as quickly as possible.
The major benefit here is that it helps members spread out a major expense. As of August 2023, the average price of a new car is still over $48,000. An auto loan breaks that expense down into smaller chunks to make it easier for someone to handle.
Vacation Loans
Many people want to go on vacation at the end of the year, but not everyone has the means to pay for the entire trip upfront. For that, members have vacation loans to draw from.
Vacation loans offer the perfect solution for funding all aspects of a dream getaway—from luxurious flights and comfortable hotel accommodations to convenient rental cars and delicious meals. With a vacation loan, you can help turn your member's travel dreams into unforgettable experiences.
Buy Now, Pay Later
Over the last few years, Buy Now, Pay Later programs (also known as BNPL) have become popular for their convenience and ease of access. Most services allow members to split purchases of up to $1,500 into smaller, interest-free payments.
The average amount an individual finances within a year with BNPL is around $1,000.
Bonus: Skip a Payment Program for the Holidays
Lastly, there is the "Skip a Payment" program, which not only provides financial assistance to your members but also demonstrates how much you care.
The premise is simple. If a member...
- Has a loan that is 2 months or longer
- Has a solid payment history of six or more months
Then they can "skip" a payment at the end of the year. This can be a great way to help someone out with extra cash, again during the holidays.
Interested in automated skip-a-payment software? Click here to talk to a sales rep here!
Holiday Success with Our Digital Lending eGuide
Discover the power of digital lending at FLEX! This eGuide is designed to empower your credit union to provide members with the perfect loan products and services. Click the button below to get your free copy.
