Home
>
Personal Loans
>
Guide
>
Financing Your Wedding: Everything You Need to Know

Financing Your Wedding: Everything You Need to Know

Navigating the world of wedding planning can be daunting, especially when considering finances. Our guide to wedding loans aims to simplify the process, providing you with essential insights to make informed decisions, ensuring your special day is both memorable and financially manageable.

What is a Wedding Loan?

A wedding loan is an unsecured personal loan taken out to cover wedding-related expenses. This means you won’t need to put down a valuable asset as collateral — and comes with fixed annual percentage rates (APR) which range from 6% to 36%. Couples can borrow the amount they need upfront and make monthly payments with payoff terms from one to seven years. Interest rates rely heavily on your credit score, and the best rates are reserved for applicants with good to excellent credit.

Credible

Fixed APR: 5.20-35.99%
Loan Term: 12-84 months

Get Rate

SoFi

APR: 8.99-25.81%
Loan Term: 24-84 months

Get Rate

LoansUnder36

APR: 5.99-35.99%
Loan Term: 3-72 months

Get Rate

Key Terms to Know

In order to understand how wedding loans work, let's get familiar with some of the most common terms you might come across.

Interest Rate: The percentage of the loan amount that you'll pay in addition to the principal. This is how lenders earn from giving you a loan. A lower interest rate generally means you'll pay less over the life of the loan.
Term: The duration of time you have to repay the loan. A longer term might mean smaller monthly payments, but it can also mean more interest paid over time.
Unsecured Loan: Unlike secured loans that require collateral, an unsecured loan does not require you to pledge any asset. Wedding loans are typically unsecured, meaning they might have higher interest rates due to the increased risk to lenders.
APR (Annual Percentage Rate): The yearly cost of your loan, including both the interest rate and any associated fees. This provides a comprehensive view of what the loan will cost you annually.

How to Apply for a Wedding Loan

If you’re interested in a wedding loan, you can apply in five simple steps:

Check Your Credit Score: Access your credit report at Experian, address discrepancies, and understand where you stand. This will indicate your potential loan amount and interest rate. If needed, consider a co-signer for better terms.
Get Prequalified: Provide basic financial details to lenders for pre-qualification. This soft credit inquiry helps gauge your loan eligibility without affecting your score.
Compare Lenders: Assess various lenders on interest rates, fees (like origination or late fees), and loan terms (duration of the loan). Remember, longer terms might mean lower monthly payments but more interest over time.
Apply with Your Chosen Lender: After selecting a lender, fill out their application. This involves a hard credit check. The approval might be instant or require further clarification.
Receive Your Funds: Depending on the lender, you can get funds within the same day to a week. Prioritize according to your funding speed preference.

Conclusion

In conclusion, while a wedding loan can provide the funds needed for your dream wedding, it's essential to evaluate the long-term implications and consider if starting your married life with debt is the right decision for you. Always compare loan offers, understand the terms, and read the fine print before making a commitment.

FAQ

How Much Money Can You Get With a Wedding Loan?

The exact amount depends on the lender and your specific credit score, history, and income. However, many of the loans range in amounts. You can borrow as little as $2,500 to as high as $35,000 from some. The amount you choose to borrow should also be something that you need, as you have to pay this debt back.

When Should You Get a Wedding Loan?

Often, one would get a wedding loan when you need to start putting down deposits on venues and with service providers. The loans are typically funded within a week from being approved on your application. Some lenders even promise to deliver funds within 24-48 hours from being approved on the application.

How Do Wedding Loans Work?

Wedding loans are personal loans, but when they ask the reason for borrowing the loan; you'd put it for wedding costs. This is what makes it known as a wedding loan. You choose who to work with and apply with them. Through this application, if approved, you would then sign to acknowledge and receive the loan. The money is then sent in a check or picked up with the financial institution, or directly deposited into your account. You would then use the loan to put towards any of the wedding purchases you have to make. You then pay the loan back to the lender at the agreed amount and during the timeframe discussed.