Black Friday Loans: Should You Borrow to Save?

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Despite the doom and gloom name, Black Friday has become a popular worldwide culture that features discounted deals, bargain buys, and sensational sales and specials. But not everyone has money to splurge on Black Friday.  

Are you stuck at home feeling sorry for yourself because you can’t afford that brand new 55 inch Smart TV even with the amazing discount? Are you thinking about taking a Black Friday loan, so you can participate in the holiday shopping frenzy before Christmas rolls around? 

Here’s what you need to know before approaching Black Friday loan lenders.

What Are Black Friday Loans?

Black Friday loans are typically personal loans that you take out for the specific reason of spending on Black Friday. In most cases, lenders rarely have a special financial product designed for Black Friday. Instead, they are just marketing their usual personal loans to fit in with the hype. 

They can do this because most personal loans are general purpose and can be used for many things, including weddings, travel and holiday, buying a car, paying for your education, and yes, getting deals on Black Friday. So, it’s common for a personal loan to be labelled and marketed according to how it will be used.

In any case, a Black Friday personal loan gives you the extra money you need to spend on holidays, and it’s up to you how you spend the money.

How Do Black Friday Loans Work?

As with most personal loans, Black Friday loans can be secured or unsecured. With a secured loan you have to offer an asset, like a car, which will be repossessed if you fail to pay off the loan. An unsecured loan doesn’t require collateral, but you need to have a good credit score, especially if you want to secure a lower interest rate. 

Eligibility requirements and the terms on your loan contract vary from lender to lender. Generally, you need to be at least 18 years of age with a reliable income. Most lenders will only approve an amount you can afford, and loan terms usually range from six months to five years.

How To Choose the Best Black Friday Loan

Here are several factors to consider when shopping for the best Black Friday loan deal:

  • Interest rates: The whole purpose of Black Friday is to get good deals, so you can save big. Therefore, taking out a Black Friday loan only makes sense if the interest rate is low. That way, you can still save even if you’re paying back the debt with interest on top.

  • Repayment period and size of monthly payment: As mentioned, loan terms range anywhere from a few months to several years. Your loan term will affect the size of your monthly payment. The longer the term, the smaller your instalments will be and vice versa. This gives you the flexibility to pay off the loan according to your budget. But keep in mind that choosing a longer term means you pay more interest, so the loan will cost more.

  • Loan quotes: Look for lenders that provide free, no-obligation quotes that won’t impact your credit score. Prequalifying allows you to see your personalised rate estimate and other details to help you make an informed decision before committing. 

  • Quick processing: When Black Friday starts, you can be sure there will be a stampede for the best deals. If you want fast funding, your best bet is to go with an online lender. Applying for a Black Friday personal loan online is usually quick and convenient. Some lenders will transfer the funds on the same day of approval, so you can start enjoying the holiday shopping season sooner.

Are There Any Risks Associated With Black Friday Loans?

When taking out a Black Friday loan, take care to avoid the following.

  • Higher than average interest rates: If a loan has an extremely high-interest rate, then chances are it’s a Black Friday payday loan, not a personal loan. Payday loans are short-term loans designed to be repaid on your next payday. Because of their high cost, they are usually suitable for financial emergencies instead of shopping sprees.

  • Expensive fees: Some loans can have a low interest rate but expensive fees. So, when checking out the interest rate, find out how much the lender charges for their initiation fee and monthly service fee to avoid nasty surprises down the line.

  • Borrowing more than you can afford: Even if the lender approves you for a higher borrowing limit, don’t forget to factor in your budget. Borrowing more than you can afford sometimes leads you into a vicious debt cycle - a trap that’s difficult to escape from.

More Black Friday Financing Options

Most Black Friday loans are personal loans. Some people also take out Black Friday payday loans, although this is only wise if you plan to repay the debt quickly. So, what other financing options are available if you need extra cash to shop for deals on Black Friday? Let’s look at a few.

  • Credit cards: Generally, credit cards have higher interest rates than personal loans. However, charging to a credit card can be a good idea if the card has a promotional 0% interest rate. You just have to make sure you pay off the loan before the promotional period ends. Otherwise, you’ll be stuck with a bigger debt when a higher interest rate kicks in.

  • Cash advance: If you have a credit card, you can sometimes use it to withdraw money from the bank or ATM to cover strictly-cash purchases.

  • Line of credit: This is similar to a credit card, except it’s attached to your bank account. Lines of credit are usually useful when unexpected expenses come up. They also have higher rates than personal loans, so they should ideally be used for urgent expenses.

  • Borrowing from family and friends: If you don’t qualify for a Black Friday loan, you can always borrow from family and friends. It’s best to have a contract in place and ensure that everyone involved understands the terms and conditions before signing on the dotted line.

Tips to Avoid Piling Up the Debt Around Black Friday

Black Friday has a way of infecting people with the shopping bug. However, borrowing to spend on Black Friday is not worth it if it worsens your financial situation. Here are some tips to stay debt-free or at least have manageable debt when the annual shopping extravaganza comes to town.

  • Save money ahead of time: You can start saving money aside, so you have something to splurge. This also helps you to borrow less.

  • Shop wisely: It’s important to have a Black Friday budget that you stick to. Creating a spending plan and listing the items you want to buy helps you to avoid impulse buying.

  • Compare loans: Always take the time to shop for loans and compare fees, interest rates, loan amounts, repayment periods, and requirements for loan approval. This will help you find the best lender and loan options available for you.

  • Only borrow what you can afford: Black Friday deals can be tempting, but be sure to only borrow money you can afford to pay back. 

  • Pay it off quickly: Paying off your loan quickly can save you interest. The good news is, most lenders won’t charge you an early payment fee. 

The Bottom Line on Black Friday Loans

It’s possible to borrow and still come out on top on Black Friday. If you don’t have enough savings, you can use to compare offers and get the cash you need. makes it easier to choose the best loan option available, so you can skip the hassle of shopping for a loan. Instead, you’ll have more time to shop for the things you love, such as that low-priced laptop, TV, or kitchen appliance.

To get started, fill in our loan application form, receive offers, choose the best one, and get your money. Apply today, and start budgeting for those early Black Friday deals that have all the good stuff.

How much do you need?

Get a Loan up to  R350,000

Representative example: Estimated repayments of a loan of r30,000 over 36 months at a maximum interest rate of 29.25% apr would be r1,381 per month including fees. Repayment terms can range from 2 - 72 months. Myloan is an online loan broker and not a lender. Our service is free, and we only work with NCR-licensed lenders in South Africa. Interest rates charged by lenders can start as low as 19.25% apr, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicant's credit score and other factors at the lender's discretion.