- What Are Wedding Loans?
- How Do They Work?
- How Much Can You Get?
- Who Can Get It?
- What Can You Do With Wedding Loans?
- Can You Get Wedding Loans For Bad Credit?
- Is A Wedding Loan Right For You?
Your wedding is the happiest day of your life, but it's also the most expensive, which is why you might need to get a wedding loan to cover all the associated costs. Between food and drinks, the wedding dress, the venue, and the exorbitant price of the flowers, costs can mount quickly and send you into a little bit of a tizzy.
Unfortunately, that can lead to a lot of fights between the happy couple, and a lot of anxiety related to finances, crossing guests off the list because of affordability issues, and endless other assorted drama. We've all heard the stories, and some of us have lived them and now know better. So, in order to avoid all the unnecessary stress, why don't you get a wedding loan? Let's look into it and see what it's all about.
What Are Wedding Loans?
As you may have guessed from the name, weddings loans are personal loans you can use to pay for your wedding. We all know how expensive an event like a wedding is, and it can be incredibly difficult to part with that kind of money, or even raise it in the first place. That's why most couples opt to borrow money to pay for a wedding, because it's easier and the more affordable way to do it.
How Do They Work?
As I mentioned, wedding loans are just personal loans, they work just the same. You apply for a loan just like you would with any personal loan, stating the amount you would like to borrow, for how long, and providing any personal details that may be necessary for the process. Depending on your financial situation, your credit score may or may not be taken into consideration, which we'll discuss in a coming section. Once your application is reviewed, you will receive approval (or not!) and then all you have to do is wait for your money to come in and think about what you're going to spend it on. Perhaps adding a couple more tiers to the wedding cake?
How Much Can You Get?
The amounts will vary depending on the loan provider, but also on your eligibility and affordability. You can start as low as £500 and go as high as £50,000 - it's all up to you and the lender you choose, as well as how much money you need and what you can afford to borrow and repay.
Never borrow more than you can repay - legitimate companies will perform an affordability check, but it's ultimately your responsibility to make sure you can cover whatever loan instalments you will need to repay.
Who Can Get It?
Okay, but what about borrowers? Who can get a top-rated personal loan to pay for their wedding? Are there any specific requirements that may take people out of the running for financing? Luckily, the eligibility requirements are pretty run-of-the-mill
- be over 18 years of age (which you probably are, if you're getting married!)
- be a resident of the United Kingdom
- have a UK bank account where you can receive the money you borrow.
Of course, you must also pass the eligibility checks and possible credit checks the loan provider may perform, so make sure that you can afford to take this loan. If you're unsure, you can always use a loan calculator like the one made available by the Money Advice Service. They also offer free access to divorce and a money calculator, in case the marriage goes South.
What Can You Do With Wedding Loans?
Obviously, there are a million things to pay for when talking about an event of this magnitude, so you need all the help you can get, and there is no shortage of places where that money can go to. Here are just a few of the major expenses that a wedding loan can cover.
One of your biggest expenses is going to be the actual venue. It needs to be big enough to hold your entire guest list, plus servers, and if you want to book during wedding season, it's going to weigh very heavily on the ol' purse strings. That's why a wedding loan can be extremely helpful - book your choice location, ahead of time, and make sure everything is secured and ready to go for the big day. You wouldn't want to miss out on your ideal venue just because you didn't have money for the deposit, right?
Ten years from now, your guests won't remember much from your wedding, except for the bride's dress, any family drama that may have taken place at the reception, and whether or not the food was any good. People come to a wedding, to eat, drink, and be merry, so you'd better give them something good to talk about. After so much dancing, you and your guests will want to have a delicious, hearty meal to enjoy.
There are very few things in the world that are worse than a dry wedding, so the booze should be on point. And it should be plentiful. However, the cost of an open bar can bring a very well deserved tear to your eye and it's one of the primary causes for family fights when it comes to wedding costs. Why not side-step that entire issue by paying for it with the help of a loan? That way, you can treat your guests to all the booze they want and your dad doesn't have to complain about what his money is or isn't paying for. Your wedding, your rules!
No wedding is complete without flowers. Beautiful floral arrangements should be present on every table, decorate the venue, and come together to create a lovely bouquet for the bride. But fresh flowers can come with an indecent price tag, especially if you tell the florist they're for a wedding; then the price skyrockets. But a wedding without flowers can end up looking kind of sad, so you might be stuck between a rock and a hard place. Use a wedding loan to save the day and get the most beautiful flowers money can buy! After all, you only get married once.
Can You Get Wedding Loans For Bad Credit?
Now, if you've got bad credit, you may be wondering if you can even get a wedding loan. Will that create difficulties? Is it even possible to get wedding loans for bad credit? You'll be glad to hear that yes, it is certainly possible for you to get wedding loans for bad credit! There are companies that specialise in this specific type of customer and offer loan options for those whose credit scores are less than perfect.
Of course, the terms for a wedding loan for bad credit will be a bit different than a regular loan - the interest rate may be higher, or the loan may come with certain limitations. That is because the lender must get their security through other means.
If you're unsure about your credit situation, you can always check and find out more at Equifax, Experian, or ClearScore.
Is there anything else you'd like to know about wedding loans? Any burning questions you'd like the answer to? Things we overlooked earlier? Here's where you can find out additional responses to frequently asked questions.
Who offers wedding loans?
Since wedding loans are nothing more than personal loans, the good news is that they are offered by most lending companies and financing providers, from banks to high street companies to companies that operate online. While the loan terms may be different, the type of loan is ubiquitous, so you won't have a hard time finding someone to offer you a loan, even if you struggle with bad credit, for example.
What is the interest rate like?
The interest rate is another one of those details that is subject to variation, depending on the lender and your financial situation. The APR will be higher the lower your credit score is. That means that if you're borrowing with bad credit, you will pay more in interest, compared to a borrower who has a great score. The reason for this is that you represent a higher risk for the lender, when it comes to affordability and repayment, so they must secure themselves somehow, in case you default on the loan.
How do I repay?
The repayment on personal loans like these is made traditionally, like most other loans, in instalments. Typically, the instalments are to be paid monthly until the entire amount borrowed is successfully repaid, including the interest charge. Different lenders may have different terms and some may allow you to repay fortnightly or even weekly, depending on what your agreement states and what your income is like. If it's difficult for you to hold onto the money for the instalment for a whole month, then maybe it makes more sense for your type of budgeting to repay weekly.
For how long do I repay?
As for the actual period of repayment, that depends on several factors. First of all, this is dependent on how much money you borrowed. The higher the amount, the longer the repayment period. Then, it depends on the minimum and maximum periods offered by the lender. Some lenders require repayment within 3 years, others extend that to 5, etc. Finally, the repayment period also depends on your financial history. Bad credit may signal difficulty repaying loans in the past, in which case, a lender may limit your repayment period, just to be safe.
Lenders will typically allow you to repay the loan early, but be warned that there are usually early repayment charges that you will need to cover.
Is A Wedding Loan Right For You?
Now that you've learned everything there is to know about wedding loans, you can make an informed decision on whether or not these personal loans are right for you or not. Let's recap with a checklist of the most important points to remember about wedding loans. You should get one if:
- You are over 18 years old
- You reside in the UK
- You have a bank account
- You are getting married and need money
- You can afford to repay
- You have decent credit or are willing to pay extra for a loan with bad credit
All in all, even though weddings can be a real killer, financially, all is not lost, and it doesn't have to turn into a war with your family. You can have your cake (wedding cake, that is) and eat it, too! All you have to do is get a wedding loan to pay for all of your major wedding costs. That way, you can afford all of your deposits and then just repay the loan at your own pace and according to your affordability. Ensure that all the memories from both wedding planning and your big day are happy ones!