It’s wedding season! And wedding expenses are on the rise.
In fact, wedding costs have almost doubled over the last decade— even despite a recession. So how does one go about getting wedding finance? Here are some tips on how to finance a wedding.
What Is a Wedding Loan?
A wedding loan is the best way to finance a wedding. It’s a personal loan that you can use to finance wedding expenses.
You can use it for anything wedding-related (finance wedding ring, reception costs, the wedding dress, or tuxedo). Even honeymoon travel expenses are part of the wedding loan package.
The best part about wedding loans is that they’re just as flexible as any other loan. If you want to use the funds for one thing and then take them back out later, there won’t be any problems whatsoever with doing that.
When Do You Need a Wedding Loan?
Any wedding that involves a lot of wedding expenses can benefit from wedding loans. Here are some wedding loan examples:
Your wedding is expensive, and you know that you won’t cover the wedding costs on your own.
You want your wedding to involve many things, but the wedding costs look like they’re going to be out of control. So you take out an affordable wedding loan to have all the finances you need for your big day. After the wedding, you pay back these loans using other savings or money earned from side businesses, investments, etc.
You want an elaborate wedding with lots of bells and whistles, but there’s no way that it’ll fit into your budget even if you cut down on wedding costs as much as possible. So you take out a wedding loan to finance the wedding that you really want.
You’re getting married abroad or at a wedding chapel in Las Vegas, but you don’t have enough money saved up. A wedding loan will allow your dream wedding to come true.
What Are the Benefits of a Wedding Loan?
A wedding loan has a lot of benefits over wedding credit cards. Here are the advantages that wedding loans have:
Wedding loans are unsecured, which means that wedding lenders aren’t concerned about wedding collateral. If you don’t pay back your wedding loan, they can’t take your house or car.
Wedding lending rates are usually fairly low, which is a big advantage over wedding credit cards. You’ll save a lot of money on wedding costs by using wedding loans.
Credit Checks Not Mandatory
Some wedding credit cards need a “good” credit history to get financing. Wedding loans tend to depend on the borrower’s ability to pay back the loan, regardless of their financial situation. So if you have bad credit or no credit, wedding loans are the way to go.
No Annual Fees or Finance Charges
Unlike wedding credit cards, wedding loans don’t carry annual fees or finance charges. You’ll have 100% of your wedding loan funds without having to worry about any extra wedding costs.
Wedding loans have longer repayment periods than wedding credit cards. This gives you enough time to plan how much money you need and where that money will be coming from.
But at the same time, wedding loans do not allow you to borrow too much money. They come with a set limit on how much wedding financing they’ll provide.
Flexibility and Convenience
Wedding loans are very flexible. You can use them for wedding expenses, wedding reception costs, and wedding honeymoon travel expenses.
Wedding loans are also convenient. You don’t have to sign any wedding paperwork, wait in line at a wedding bank, or show wedding collateral. Everything can happen online.
What Are the Disadvantages of a Wedding Loan?
Yes, wedding loans do have many advantages over wedding credit cards. But wedding loans do have some disadvantages.
Limits on Wedding Financing
Most lenders allow for wedding financing up to a certain maximum amount. This might not be enough money to finance the wedding that you really want. The wedding restrictions are often too limiting, forcing you to choose wedding alternatives that are way below what you had in mind for your wedding.
You’re Taking a Debt
A wedding loan isn’t a wedding gift. It’s actually wedding debt. You’re borrowing wedding money and taking out wedding debt that you have to pay back later on.
Interest Can Also Be High
Yes, wedding lending rates are usually lower than wedding credit card interest rates. But wedding loans still come with high interest rates, especially if your lender considers your credit history very risky.
Before taking out a wedding loan, make sure that you’ve developed a wedding plan or wedding budget. That will ensure that your dream wedding will fit into your wedding finances.
Borrowing wedding money is the easy part of getting wedding financing. But if you don’t plan for how to pay it back, all that borrowed wedding financing can turn into a big mess later on.
How to Apply for Wedding Loans
Applying for wedding loans is usually an easy, fast, and convenient process. Some wedding lenders require wedding loan applications to be printed out, while others can be completed online.
Here are the steps involved in a wedding loan application:
Check Your Credit
Check your wedding credit report before you apply for wedding loans. Once wedding lenders check your credit history, they can determine whether or not to provide wedding financing. They’ll see how responsible you’ve been with finances in the past and make their decision based on that information.
If you have a good credit score, lenders will be more willing to provide wedding financing. If you have a credit report that’s blemished with financial mistakes, wedding lenders might not offer wedding loans to you.
Look for Lenders
Make a list of wedding lenders to contact for wedding loans. Lenders can be banks, credit unions, and other financial institutions that provide weddings loans. They might also be wedding loan companies or online sites that offer wedding lending services.
Check the Fees
Ask about any fees involved in applying for wedding loans. Check the interest rate and any loan processing fees that need to be added on top of your initial loan balance.
Look at Your Wedding Budget and Needs
Look at your wedding budget and make sure that you have enough money to meet all of your wedding needs. You don’t want to take out a wedding loan only to find out later in the process that you can’t get everything that is on your list.
Prequalification is another wedding lending option. Make sure that you take this step to understand better what type of loan to apply for and how much money you’ll be borrowing.
The lender will provide you with a wedding loan amount and interest rate. These are estimates, and your final wedding finance agreement might be for more or less money than originally offered.
Compare Your Offers
Compare the wedding lending amounts, interest rates, and fees of different wedding lenders. Look at all of your wedding options before you make a decision. Check their references if possible so that you can see what former customers have to say about each lender.
Apply for Wedding Loans
Once all the early wedding loan application steps are complete, it’s time to fill out the actual wedding loan request. You’ll provide your basic personal information, including your name, address, phone number, birthday, social security number, and employment details. Add any additional information that might help your lender understand more about your financial situation.
Then you may be asked for some specific information about your dream wedding:
- The date of the marriage ceremony and reception
- Location details
- Items needed for the event
- The number of guests attending
You’ll be asked to list your wedding expenses, including the price of invitations, flowers, honeymoon travel plans, reception venue fees, food costs, and more.
After applying for wedding loans, it’s important to remember that getting a wedding loan is only one of many steps in the wedding financing process. You’ll need to establish your overall budget and stick with it. Make sure you’re not spending more than you can afford on wedding planning and keep track of all of your expenses.
Keep good records so that you can prepare an accurate list of what money has been spent and where it went. Also, realize that some things will cost more than what was originally projected. So make sure there are emergency funds available for those occasions.
Stay organized by making lists and using checklists when preparing for the big day. The better organized you are, the easier it will be to plan a dream wedding without going into huge debt.
Get Wedding Finance
Wedding financing is becoming an expensive necessity. When you’re looking for loans for weddings, make sure that interest rates and fees are affordable.
Also, try to choose a lender willing to work with your specific needs and wants. And keep in mind that the best way to get wedding funding is by taking all of these steps before you start shopping for wedding finance or spending money on the big day.
We hope you’ve enjoyed this article and found it helpful. For more informative content, please see our other articles.