Borrowing Options To Help Pay For Christmas | will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by will always be from Be Scamsmart.

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Derin Clark

Derin Clark

Online Reporter
Published: 19/11/2020

With just a week left to Black Friday, the Christmas shopping season has already begun and consumers across the UK will be deciding how much they have available to pay for this year’s Christmas.

According to YouGov survey, last year the average UK consumer spent £1,116 at Christmas. Although spending is expected to fall this year, consumers are still expected to spend hundreds of pounds during the festive period. For those who have seen their Christmas spending creep over their festive budget and who are certain that they will be able to meet repayments, borrowing could be an option to help pay for this year’s Christmas.

Here, we’ve taken a look at the best options available if you need to borrow up to £1,000 to help pay for Christmas 2020.

0% purchase credit card

When borrowing, ideally consumers should look for the option that charges the least interest. As such, a 0% purchase credit card is a good option for those looking to borrow. With a 0% purchase credit card, borrowers can spend on the card and they will not be charged interest until the interest-free term has ended, which gives shoppers time in which to pay back the money without having to incur interest charges on the debt. At the moment, the longest interest-free term on a 0% purchase credit card that does not charge a monthly card fee is 20 months, which is being offered by TSB, M&S Bank and Sainsbury’s Bank.

TSB offers 20 months interest-free on its Platinum Purchase Card Mastercard, which after the interest-free period has ended charges 19.9% APR. M&S Bank has an interest-free period of 20 months on its Shopping Plus Mastercard, which comes with the added bonus of enabling shoppers to earn reward points. This card charges 19.9% APR after the interest-free period ends. Also offering shoppers the ability to earn reward points and a 20-month interest-free period is Sainsbury’s Bank’s Dual Offer Credit Card Mastercard. A rate of 21.9% APR is charged after the interest-free period ends.

The drawback with a 0% purchase credit card is that it can take several weeks for the application to be processed and to receive the card. As a result, it is likely to be too late to receive a new 0% purchase credit card before Black Friday, which is due to take place on Friday 27 November 2020.

As well as this, whether the application will be accepted, along with the credit limit and APR charged, will depend on the applicant’s credit score. Credit scores can be checked for free through our credit check page.

Personal loan

Another alternative for those looking to borrow to help pay towards Christmas is to use a personal loan. A personal loan has the advantage over a 0% credit card in that the loan application can be accepted and the money received within days, sometimes even the same day. But the borrower will be charged interest from the moment the money is received.

For those looking to borrow £1,000 spread over 12 months, the lowest APR on a loan that is available to both new and existing customers is AIB’s Personal Loan, which charges 12.30% APR. This would result in interest of £64.28 being charged on the £1,000 loan and the borrower would have to make £88.69 monthly repayments. A full list of all personal loans available can be found on our personal loan chart.

Again, borrowers should be aware that their credit score will impact whether the loan application is approved and the final APR that is offered.


One of the most expensive ways to borrow money is using an overdraft, but these have the benefit of often already being available to consumers through their current account or can be applied for quickly and easily. Although some bank accounts will offer 0% interest on overdrafts up to a certain limit, usually these accounts are only available to high earners, for example those who earn £75,000 or more per year. Earlier this year, many banks introduced new overdraft fees – which can be found here – and this resulted in some charging as much as 39.90% EAR on arranged overdrafts. As a result, borrowers should only use an overdraft if they are able to repay the money quickly to avoid the high interest charges.


Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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