What Is a Wedding Loan?
Personal loans do not require collateral, and you can use your loan funds however you want. With that in mind, a wedding loan is nothing more than an unsecured personal loan that lets borrowers use loan proceeds for any purpose. These loans can be used for the wedding venue, an engagement ring, flowers, decorations, and more.
Reasons for Getting a Wedding Loan
We already mentioned how the average wedding rang in at $28,000 in 2021. These high costs make the reason for getting a marriage loan obvious. Most couples don't have the cash to pay for their wedding outright, so they have to lean on funding to make their dreams come true.
Other reasons to get a wedding loan:
- Access fixed interest rates and fixed monthly payments
- Know exactly when your loan will be paid off
- Build credit with on-time monthly payments
- Wedding loans provide cheaper funding than credit cards
- Save your cash for other goals, such as the down payment on a home
- Have the dream wedding you always wanted
How to Get a Wedding Loan
Thanks to technology and the internet, getting a wedding loan is easier now than ever before. The following steps can help you get started.
- Step 1: Decide how much you need to borrow. Set a realistic budget for your wedding that includes everything you need to pay for, from the venue to the dress. From there, add 10% to your wedding budget to prepare for any overages.
- Step 2: Get prequalified online. Once you know how much you need to borrow, you can check your rate online without a hard inquiry. This step will help you see the APR you may be able to qualify for, as well as potential monthly payment options.
- Step 3: Compare loan terms and rates. Make sure to compare rates and terms with multiple lenders to find the best deal. If you want to compare loan offers from several lenders in one place, check out Credible or LendingTree.
- Step 4: Read over the fine print. As you narrow down your loan options, check for hidden fees like application fees and origination fees.
- Step 5: Settle on a loan payment and term you can afford. Decide which loan offer looks the best, and make sure the monthly payment works with your budget and future income. If you want a lower payment, consider extending your repayment timeline.
- Step 6: Apply for your loan. Once you know for sure which lender you want to work with, take the steps to apply. You can do this by providing personal information as well as details on your credit and income.
- Step 7: Get funding within a few days. All the lenders that made our ranking offer funding as soon as the next business day.
When to Consider a Joint Wedding Loan With Your Spouse
If you're going to marry someone else and you need to borrow money to make it happen, it definitely makes sense to borrow alongside your partner. Adding your spouse as a co-signer on your wedding loan application makes sense since you should be equally liable for repayment. If your partner has a strong income and good credit, this can help you qualify for a loan with better rates and terms as well.
Wedding Loan Alternatives
As you shop around for personal loans to cover your wedding expenses, you should also consider some of the alternatives out there. These include:
- 0% APR Credit Cards: Some credit cards offer 0% APR on purchases for up to 21 months, so they can be a good fit for charging some wedding expenses. Just note that these introductory rates don't last forever, and that your rate will reset at a higher variable rate thereafter.
- Rewards Credit Cards: Also consider credit cards that offer cash back or points for each dollar you spend. Some rewards credit cards also offer 0% APR on purchases for a limited time, so you can get the best of both worlds.
- Home Equity Loans: If you own your home and don't mind using your home equity as collateral, a home equity loan could be a good fit. Like personal loans, home equity loans come with fixed interest rates, fixed monthly payments, and a fixed repayment timeline.
- HELOCs: Also consider home equity lines of credit (HELOCs), which extend a line of credit you can borrow against. Like home equity loans, HELOCs require you to use your home equity as collateral.
Conclusion
The best wedding loans let borrowers secure up to $100,000 for the nuptials and party they have always dreamed of, and all the lenders in our ranking let you apply for funding online. Many also let you borrow without any fees, and you can get funding within a day or two of applying.
That said, it's still important to compare rates and terms across all the lenders we highlighted in this guide. With some research and planning, you can wind up with a wedding loan you won't regret.