A wedding loan is a type of personal loan that is unsecured. Therefore, it usually does not require any collateral. A personal loan for wedding is useful for financing wedding expenses, such as catering, photography, wedding band, etc.
Depending on your requests, planning your dream wedding can turn out to be an expensive event, and not everyone has enough savings to cover all wedding expenses. One of the most convenient solutions for those who can afford monthly payments is taking a loan. This option can help you finance all wedding costs and make your special day exactly what you want it to be.
There are multiple loan options available from traditional banks to credit unions and online lenders. Online lenders tend to offer the most efficient process, even for individuals with bad credit. The funds can be disbursed within a few days. You pay the loan back with monthly installments that include interest, usually in three to seven years.
Here are a few tips to help you pay for your wedding in a short time:
- Make a list of the most important things to allocate your budget accordingly. Prioritizing is the first step to sensible money management
- Try to cut costs on a wedding. A smaller guest list or little decoration can help you save funds
- Don’t be afraid to ask for help from friends and family
How to Choose the Best Wedding Loan?
Wedding loans typically range from $1,000 to $35,000. When selecting a personal loan for your wedding, consider the following:
- Determine the loan amount needed after calculating contributions from your family and partner
- Start saving up to have extra money before considering other options
- Check your credit score. It can be crucial for your approval. Improve your credit score, if possible. Late payments and other negative marks on your credit report could have lowered your credit history. The best rates are offered to those with good to excellent credit scores
- Check if you can afford monthly installments. Failure to repay the loan may harm your credit score severely
- Reduce your debt
- Read customers’ reviews and compare different resources and loan offers to see which one has the best interest rate. There are multiple comparison tools, loan-matching services, and even a wedding loan calculator
- Prequalif Some lenders offer it before applying for a loan. This can be useful for estimating the loan terms, rates, amounts, and eligibility
- Hidden fees. There are some fee-free options, but usually, some unobvious fees exist, so don’t be afraid to ask your lender for this information to avoid unexpected costs. There can be origination fees, prepayment penalties, and late payment fees
- Gather necessary documents, such as proof of income or information about your debt. Lenders usually require your debt-to-income ratio, employment status, and credit score
- Accept the best offer and, if your application is approved, receive the funds. When selecting a personal loan, you may receive your money the same day
The average cost of a wedding in the U.S. is around $35,000, and it can be hard to come up with the funds if you’re on a tight timeline.
When planning a wedding, it’s important to realize what expenses you’ll face. Here’s a list of some common wedding expenses to take into account:
- Engagement ring. They can vary widely in cost depending on the type of ring, size, quality, the materials used (gold, silver, or platinum), and other factors. Generally, diamond engagement rings range from about $1,000 to $15,000
- Venue. This is one of the biggest expenses, and it can include the cost of the ceremony and reception space. The average wedding venue cost may reach up to $11,000
- Food and beverage. The cost of catering, drinks, and any other food-related expenses depends on the number of guests invited, the type of food, etc. A full-service catering package can start at around $30 per person. Alcoholic beverages are typically extra and can start at around $10 per person
- Wedding This includes the cost of dresses, tuxedos, and accessories (about $1,000)
- Flowers and decorations. Depending on your needs, your wedding flowers cost may reach up to $2,500
- Music and entertainment. The cost of a DJ, dancers or live wedding band ranges from $400 to $12,000, depending on your taste and budget
- Transportation. This can include the cost of a limousine, bus, or other transportation for the bride, groom, their families, and other guests
- Photography and videography. Capturing memories is important, so the cost may reach up to $5,000
- Honeymoon financing. Couples in the US spend an average of around $5,000 on their honeymoon
Pros and Cons of Wedding Loans
|Lower interest rates compared to credit cards||Starting a marriage in debt|
|Fast and easy online options||Rates depending on your credit score|
|Any wedding expenses coverage||Interest rate up to 36%|
|Options for individuals with low credit score||You can face lawsuits in case of default|
|Repayment terms up to 7 years|
|Fixed monthly installments|
|More opportunities to make your wedding day luxurious|
Wedding Loans for Bad Credit
When talking about bad credit wedding loans, the first advice we can give is to consider a joint wedding loan. If you have a bad credit score, a joint wedding loan may allow you to apply for a loan easier and even get lower interest rates. A joint wedding loan is when you and your future spouse apply for a loan together. Lenders consider the income and credit of both borrowers. Both you and him or she will sign the loan agreement and will be equally responsible for repayment. That means, that if you’re unable to repay the loan, the lender can collect the funds from your co-borrower. But it’s important to note that if your partner has a poor credit history, joint loans are not the best option, and you may get high interest rates instead.
Another option is to add a co-signer with good credit. It can increase your chances of getting approved for a loan and securing a better rate.
If the two options mentioned above are impossible, it can be more difficult to obtain a loan, but still possible, because some online lenders are ready to work with such clients, but interest rates may be higher.
Funding Wedding Alternatives
If you don’t want to obtain a loan, there are other ways to pay for a wedding:
- Personal savings. Start saving as early as possible and cut costs where you can
- Ask guests to contribute to your wedding costs
- Crowdfunding. Search for online platforms and create a crowdfunding campaign to raise money for your wedding
- Sell items. Consider this option to save up more money
Taking out a personal loan for wedding expenses is easy and fast, but be aware of your repayment possibilities. Compare different lenders, use online calculators, and make the best choice to make this day perfect.