Few things are more romantic than a marriage proposal. Of course, once the excitement of saying yes dies down, there's the little question of figuring out how you're going to pay for it all.
Tradition states that the bride's father meets the wedding costs. In some cases, it could be the bride's family that meets all your wedding expenses, with everyone chipping in a little bit.
However, in modern times, it's often the bride and groom who meet some or even all of the wedding expenses. It does mean you're in control of what happens and how your big day goes, rather than having to agree to invite certain people just because the person paying for the wedding wants them there. As you might guess, things can become rather complex!
If you both want to cover all your wedding expenses, it's sensible to sit down and figure out how you're going to do that.
If you're searching for more information on this topic, we may be able to help. We've laid out plenty of information for you here, covering way more aspects of wedding budgeting and funding than you might think were possible.
While it's possible to look for a personal loan to pay for your wedding, some lenders have specific wedding loans on offer.
Before we dive into the details, including loan terms, the potential presence of an origination fee, down payment info, how much money you could borrow, and other wedding loan costs, we'll cover a few common questions that tend to arise.
These queries tend to crop up in the early stages, when a couple are beginning to think about their wedding and wondering how to meet the cost. We'll go into far more detail below.
However, with the average cost of a 2021 wedding pegged at around $22,500, it's clear that you ought to figure out how to pay for it first. For some, that figure is simply unaffordable. For others, it's easily attainable. We're all different, with different ideas of what we'd like at our wedding and different levels of financial affordability too.
For some people, loans could be worth considering. There are many personal loan lenders available online and off, so there could be multiple possibilities. We cover further information below.
Rest assured we'll look at personal loan APRs, origination fee possibilities, and all the other ins and outs you might wish to know more about ahead of time. However, it's important at this early stage to recognize there is a lot to bear in mind if you're wondering whether any sort of loan could fit your needs in this scenario.
It's possible to get a personal loan to fund your wedding. As with all personal loans, you'll need to make sure you meet the requirements laid down by each lender who may fund loans.
For example, Sofi personal loans may have different requirements for various loan terms for borrowers than Best Egg personal loans. This is just one example, but it is relevant for all loan terms from all kinds of sources. One may include an origination fee, while another may not have an origination fee, to give just one example.
Some lenders offer specific wedding loans too, which may have different terms when compared to regular personal loans. As far as the loan request process goes, you'll need to meet much the same requirements, such as meeting a minimum credit score requirement.
We'll go into detail on credit score information later in this guide, including how to get a free credit score to help you understand more on that topic. But suffice to say, loans have similar features when compared to each other, although they're not all identical.
Banks may have wedding loans available, but they're not the only source to consider. Many personal loan lenders also include wedding loans among other financial products.
You might also look at loan funding from online lenders or credit unions. For the latter, investors commit funds to savings and other products, while members of the union can also request loans and other products.
In some cases, you may need to sign a borrower registration agreement. Many trusted US lenders may also confirm they are an equal housing lender, thus confirming they adhere to fair lending laws. (While you're not looking to buy a property, knowing a lender is an equal housing lender is still reassuring to know.)
So, the important takeaway here is that banks are not necessarily the only source of loans for a wedding.
There are several ways you might consider borrowing money to help meet the cost of your big day. Here are some examples.
Some lenders (including online lenders) have loans available that are specifically called wedding loans. These may be a worthwhile way to pay for your wedding. They're designed purely to fund this occasion.
Not all lenders have them, just as not all sources offer student loans. However, it may be a good idea to compare these wedding loans to regular personal loans, just so you have more information and facts about loan terms to go on. You can never have too much information when you're planning this major event in your life with your significant other.
You may also see a personal loan labeled as an unsecured personal loan. This means it doesn't require anything of value to be secured against it.
As such, these loans may be offered with a lower maximum amount than you may receive if you made a request for a secured loan. This means you need to be sure a personal loan could cover all your wedding expenses. It may be fine in some cases but not in others, depending on the total cost for the services and goods required for the wedding.
If you haven't yet sat down together to look at how you'd like your wedding to go, and what you might like to include, now's a sensible time to do it. There are so many loans around, having an idea of your potential budget could help you narrow the field a little.
A credit card could potentially be used to meet some of the wedding costs. However, you may well find that a credit card could have a higher interest rate compared with personal loans.
They're designed for short-term borrowing, ideally used when you can pay off the entire balance when it falls due, so you could avoid paying interest. However, they're usually intended for smaller purchases, since larger ones could be much harder to clear in a month or two.
If you have a rewards credit card, you could pay for certain goods or services and then clear the bill when it's due. This may generate more rewards on that credit card while simultaneously making sure you avoid paying interest. However, it may be far more sensible and prudent to cover wedding costs using one of the loan types mentioned above.
In many cases, a credit card wouldn't be ideal when planning and paying for a wedding. If you're considering loans, the chances are reasonably good that the costs could well be far higher than many credit cards would be ideal for.
Not much at all... other than the name. In some cases, you may look for personal loan details and find you're asked to explain why you'd like the loan. This would be your loan purpose. A wedding is one of the more common reasons you may be able to choose from.
If you see this when looking for loans, just choose the wedding option and continue from there.
In other cases, you might come across a specific loan offered by a lender that is tailored to this event. These are quite easy to spot given their name.
The most important thing to remember is to look for a loan that may suit your requirements and affordability. So, with that in mind, let's move on to see how you could begin your journey to find a wedding loan or personal loan for that purpose.
Remember that Loanza could help connect you to one or more lenders who may offer wedding loans or personal loans for that purpose. Our online system may make life easier for you when you're searching for quotes.
If the thought of visiting banks and other lenders doesn't appeal, especially when you'll be visiting plenty of potential vendors when planning your wedding, you can use our free online tool instead. Select your loan purpose and amount, and you can sit back and wait for the results to see what might be available.
We've designed this guide to help you work out various factors and elements before you begin looking around. And we have much more ground to cover yet. Exploring loan possibilities is just as vital as considering what kind of wedding you'd both like to have.
Money can be an emotive topic for many of us. Unless you're fortunate enough to be able to fund your wedding expenses purely from savings, there is a decent chance you may wish to get a wedding loan amount that could help you meet those costs.
Before you start looking, though, you ought to know what to do for the best. Wedding loans could be a great solution, but you've got lots of points to think about first. Let's guide you through some of the most important aspects to think about together as you plan your big day.
At the beginning of this guide, we revealed the average cost of a wedding in 2021 was approximately $22,500. Now, that's an average, so you may be thinking of spending less than that, or much more.
And let's be honest, that average amount is almost certain to keep on increasing in future years too. Weddings abroad, luxury venues, plenty of guests... all these things and many more can drive up the cost more than you might imagine.
Of course, even if you want to spend a lot less, you could still end up spending several thousand dollars. Since many of us don't have that kind of money sitting around, we're back to thinking about loan terms and whether we might be able to request a loan amount to help us with our plans.
It's sensible to begin with a budget, as it gives you a starting figure. However, we could all pick a budget amount out of thin air... it doesn't mean we'd be able to afford to make the monthly payments on it.
Sitting down as a couple and working out a wedding budget is the ideal way to begin your progress in this area - even before you get to thinking about a loan. You're a long way off from received credit approval at this stage, as there's plenty to find out about before you begin looking for loan possibilities.
If you're wondering about the possible payments you'd need to make on a loan amount, don't worry. This guide is going to cover that topic shortly as well.
How many of us know our credit score? if you're not sure what your credit score is, or even whether you've got good or bad credit or something in between, it's a great idea to check it.
Your credit score could affect the loan funding you might be able to get. It could also affect interest rates, loan terms, and personal loan APRs. You'll always pay interest, but lenders may adjust the rate according to various factors, and one such factor is certainly your credit score.
Put simply, someone with excellent credit may be able to get more competitive wedding personal loans than someone with good credit or poor credit. That's why knowing your credit score is so important.
It's also worth remembering that your credit score could change, depending on your financial credit history. We'll go into more detail about soft and hard searches in a while, as those could also influence your credit score.
All the major credit bureaus carry reports on all adults, so you could ask for a copy of your credit report from one or more of them.
A free credit score report is the ideal way to become more knowledgeable about your credit score and history. Multiple lenders use information contained in the report to decide whether to extend you any loan funding.
One thing the lenders may look at involves your credit usage. You might also see this termed credit utilization. It sounds complicated, but it basically refers to the amount of available credit you're using.
Let's cover some examples to make it easier to figure out. Let's assume you have a credit card with a $10,000 line of credit attached to it. You've got a $1,000 balance on it. This means you've used 10% of your available credit.
Now, let's assume your husband or wife to be also has a credit card with the same $10,000 line of credit available. They may have a balance of $5,000 though, in which case they'd be up to 50% of their available credit. Even though the availability is the same on each credit card, you've used different amounts of that credit.
Bottom line? The lower the percentage of credit utilization, the better. Reducing that percentage is a good move if you want to improve your credit score. It's a sign you're doing well in managing your credit card balances, personal loans, and other credit sources.
Again, this is relevant for both of you if you're thinking of making a joint loan request. It's not unheard of for people to spot errors in their credit history. Things like this could affect your credit score, so it's better to put them right if you see anything along these lines.
Credit bureaus should be able to guide you on how to correct anything you might spot that could affect your credit score.
You're probably beginning to see that as you're a couple planning on getting married, you've got two credit histories to consider. You'll still have various relevant elements to find out more about, such as the likely loan amounts you might receive, whether you'll pay interest at a higher or lower rate, and other aspects as well.
However, it always makes sense for you to find out everything you need to know for the both of you ahead of looking at loans.
We did promise we'd cover this topic, so we'll do that now to be sure you know the difference between them. This is vital because it could potentially affect your credit score. Since you may need a minimum credit score to qualify for certain loans, it's a great idea to do everything you can to protect your score.
It might be better to think of a soft credit inquiry as a casual inquiry. Personal loan lenders may conduct this type of search to see basic items of information that contribute to your credit score. Think of it as giving you an idea in theory of whether you might get a loan from them, whether you're looking at secured loans, unsecured ones, or a wedding loan.
This basic search doesn't influence your credit score, so it won't change or drop lower. Lenders may then give you an idea of whether they'd give you any loan proceeds based on this basic information.
There's no guarantee that an official loan request may lead to the loan approval you're hoping for. However, the soft search gives a potentially more realistic idea of the possible outcome. If you decide to make a loan request for the loan term you've found, you could drop a few points from your credit score at that point.
It's worth pointing out here that soft searches could help you maintain your credit score while you look around for suitable personal loans. Wedding costs can easily spiral, but even if you've done all you can to reduce costs to a manageable level, you won't want to request a loan from many lenders.
That's because this could show as a red flag on your credit report. One thing many lenders look for is evidence of multiple loan requests in a short period. While it may make sense to put in several requests in quick succession, to see which one you receive the nod for, it harms your credit score.
As we now know, each official request may knock a few points off your credit score. Make a few requests and you'll see how that could affect your credit score, by dropping it far lower than it needs to go.
Moreover, many lenders look at this as potential evidence that you could be in financial difficulty. Multiple requests could potentially look desperate. Soft searches prevent you from falling into this trap. They could also help you maintain the minimum credit score you may need to request a loan from a specific lender.
We mentioned this earlier, but let's look at it in more detail here. It's possible to request a loan as a couple rather than going solo, which may seem to make sense if you're getting married.
If one individual has excellent credit, it could potentially improve the chances of finding a suitable personal loan or wedding loan if the other partner has a slightly lower credit score. It may also influence the interest rates displayed for that loan.
However, you need to think carefully about doing this - just as you should think carefully about all aspects of personal loans or wedding loans. You'll each have different income levels, credit score details, and varied information in your credit report.
Furthermore, if you did get a joint loan, it may mean either partner is responsible for making the repayments on the principal loan if the other partner failed to do so. It may seem hard to imagine this now, but you should both enter into any agreement like this with your eyes open.
One of the most useful tools you could use if you're looking for personal loans for weddings is a personal loan calculator. This helps you go through the figures to see how much you might need to make in monthly payments on a specific loan amount.
Most couples work out what kind of wedding they'd like and get some quotes for the services they want. Once they've got a rough idea of cost, they can begin looking for loan amounts that could fit this loan purpose.
A calculator could help reveal the estimated monthly payment you'd need to make if you borrowed that amount. At this stage, some couples may realize they're not able to afford the monthly payment for that amount.
If you find yourself in a similar scenario, you can return to your wedding plans to see where you may want to make some changes. Remember that you'll be making payments for your wedding loan or personal loan for several years. You don't want to stretch yourself too far financially to pay for your wedding.
It's also good to take some time to do this. Don't leave your wedding planning until a late stage, as you'll almost certainly have fewer possibilities available at that point. Remember too that you can use the Loanza online service - it's free - to see whether you could find a competitive loan that might help you create your ideal wedding.
Affordability is one of the most vital topics to learn more about as you go about planning your big day together. Hopefully, our advice may help you sit down and go through the figures, along with considering your desires for your wedding day, and what you'd like it to look like.
Don't forget to explore the cost of any possible honeymoon you might be thinking about too. Some couples include the cost of the honeymoon in a wedding loan. In other cases, couples may decide to switch out their usual vacation and replace it with a honeymoon trip somewhere special.
This could mean using your typical vacation budget to cover the honeymoon. In this case, you'd only need to consider a personal loan or similar financial product for the cost of the wedding.
No matter whether you're looking specifically at wedding loans or personal loans, you'll find two broad options might crop up:
Variable rates mean that you may find they change. Let's look a little deeper at the two and see how they might affect your loan.
We're sure you may be able to see the advantage of having fixed monthly payments for your loan amount. If you have a fixed rate for your loan proceeds, it means you'll pay the same interest rate throughout your loan term.
It does also mean you could get slightly higher interest rates too, if you compare them to a personal loan or wedding loan with a variable rate of interest. However, it's worth thinking about it like this.
With a fixed rate, you always know what your payment is going to be. Fixed monthly payments give certainty and reliability. They may also make you feel more secure. They won't leave you at the mercy of any ups or downs in the financial market.
Furthermore, if interest rates are currently low, you may feel the only way for them to go is up. This could mean you might find a competitive rate for your loan amount that gives you an affordable monthly payment to stick to throughout your loan term.
We all know what variable means, so you may already be able to see how this relates to interest rates.
When looking for wedding loans or similar products, you may notice that variable rate deals typically have a lower interest rate attached. That sounds positive enough, but you do need to remember that we're talking about a variable rate rather than a fixed one.
So, you could find that while these loan terms begin with a low rate, they could potentially climb higher over the length of the loan.
Now, you may think that checking past bank rates could help here, in supplying a picture of the past few years. However, while that is true to an extent, they cannot predict what may happen in the future.
If you do get a personal loan for an agreed loan amount, chances are it may last for several years to help you pay the costs connected with your wedding. No one can predict how interest rates may rise or fall in the next few years.
You should carefully consider this before looking at any loan terms. The reassurance you may get from a fixed rate may well overpower a lower rate you might see for your loan amount just now.
As we know, you can never be certain what the markets are going to do between now and the time your personal loan or wedding loan comes to an end. Fixed offers may incur a slightly higher interest rate on average, but it acts in a similar way to insurance. You're paying to guarantee the interest rate won't change over the lifetime of the loan.
That's reassuring to know, and when you've got wedding expenses to pay for, that extra element of security could be attractive to you for the loan amount you're thinking about.
Conversely, if you look for a variable interest rate, you may find a lower percentage offer to begin with. This may mean lower monthly payments. As we know, though, it could also eventually mean a rise in your monthly payments if the interest rate did go up.
Later in this article, we'll also look at other costs and possible fees you might encounter, such as an origination fee. These could also influence the type of offer or rate you choose, as you consider various loans to help you with your wedding.
This subject and possible outcome and choice might also depend on your credit score. Someone with good credit or excellent credit may receive lower interest rates than someone with bad credit, for instance. This may influence the payment amount required in each case each month for your loan amount.
So, it's not just a question of thinking about the fixed or variable nature of the interest rate. It's also worth considering whether you could get a reasonable offer based on your own credit score, as this may result in different figures to think about. And in turn, that may affect how affordable you might find a specific personal loan amount.
You may come across this term if you're looking for loans for weddings. Bad credit customers may be more familiar with these, as flexi loans - to use another term - could be created with these individuals in mind.
The idea is that you could borrow loan amounts up to a certain limit, paying them off and then potentially borrowing again. However, if you're looking to get a wedding loan, these aren't likely to be available for the amounts you're hoping for. Furthermore, they could incur far higher interest rates.
Fees may be relevant to many types of loans, including a credit card. Not all wedding loans or personal loans carry fees, while some may have different fees compared with others.
As you might imagine, origination fees vary between lenders. Some do not charge them, but this doesn't necessarily mean a loan without an origination fee might be cheaper than one that has an origination fee.
Hence why it is always important to review the loan terms for any potential loan you find, so you can look for an origination fee and other aspects about the loan.
For example, you may find that a loan that has an origination fee could have lower interest rates. Conversely, a loan without an origination fee might also have less competitive interest rates.
Multiple lenders may have various loan terms available, so you can see why with any loan, origination fee details are crucial to know about in advance.
Wouldn't it be lovely if you could repay your loan early? You could find this is possible for any loan amount, but you should find out about any potential early repayment fee first.
Not all loans have them, but this fee isn't uncommon. You should be able to read the full loan terms for any loan that may seem appealing before you agree to those terms. Check whether there might be a fee covering full repayment of the outstanding balance prior to taking out any loan amount. This could involve:
So, it's a sensible idea to check this before choosing a loan, so you can see what might be involved if you did choose that option.
While you'll pay interest on any loan you receive into your bank account, you could still see which deals are available. We may be able to connect you to a lender in our network, giving you access to more potential sources of funds to help you create the wedding you've always wanted.
Our site is simple to use and always free to you. You don't need to go for any loan details you come across. You're always in control. Simply complete the form and find out more. There's no need to leave home to find out more details, and you and your partner can take your time to consider where to go from here.
We hope our guide has helped you understand the various ways you could fund your big day together. It doesn't matter whether you're planning the simplest wedding or the most complex. You may have just 20 guests or a couple of hundred. Wherever you fall in the scheme of things, make sure you assess all your loan options before you make a request. Loanza is here and could guide you toward a loan worth thinking about.