set, and your Big Day is approaching. And it’s going to be the wedding of your dreams.
There’s just one little problem—how are you going to pay for it all? After all, it’s not like weddings are getting less expensive. So maybe it’s time to consider a wedding loan.
Don’t worry, we’ve got you covered. Keep reading to find out how wedding loans work and learn about a few of their many benefits.
Can You Get a Wedding Loan?
First let’s take a look at what a wedding loan is, and how it can help you with wedding expenses.
Wedding loans amount to personal loans that help cover the costs of planning a wedding. In general, these loans can range from $1,000 up to $100,000.
A personal loan to cover wedding payments might not be the first thing you think of when it comes to taking out a loan. In fact, they’re more common for such utilitarian things as debt consolidation, home loans, etc.
But a wedding loan is becoming more popular as a means of defraying the oftentimes exorbitant costs that come with wedding plans. And people are increasingly turning to this option to help achieve the wedding of their dreams.
A wedding loan usually comes with two- to five-year terms, and it is an unsecured loan. This means that it is not anchored to a physical asset, such as a home or car, and that means the interest rate will be higher.
How Do You Get a Wedding Loan?
There are several different ways to get a wedding loan.
One of your options is to go with an online lender. Another method is to approach a traditional bank or credit union. Credit unions everywhere offer personal loans, and people are turning to credit unions for such loans more than ever.
If you’re a member of a credit union, then you already have potential access to a ready-made instrument for financing your wedding. The application and approval process for a wedding loan need not be protracted and nerve-wracking.
Approval could happen within minutes, and funds are usually disbursed by most lenders within the week. Some are even available by the next day.
The process of applying for a wedding loan is no different than that involved in any other personal loan application. You can contact whichever lender you choose either in person, online, or by phone.
These days, lenders make it very easy to contact them and get the process started. As an example, a Plenti Wedding Loan is very easy to apply for through a simplified online process.
It helps to get the ball rolling by prequalifying with different lenders. This helps you to get some interest rate quotes, so you know what to expect, and all without damaging your credit score. After that, it’s just a matter of choosing a lender and applying for the loan.
How a Wedding Loan Works
After you’ve researched and prequalified with different lenders and financial institutions, you start to get a feel for how the loans work.
It’s important to bear in mind that once you receive the loan funds, you’ll have to start making payments immediately—even if the actual wedding is still months away.
Once you’ve been approved for a loan, it will be discharged in a single, lump-sum either through a direct deposit to your bank account or through a check. Again, the terms will vary based on the lender and your financial situation, but they usually run in the two to five years range.
Know Your Finances
Before you apply for a wedding loan, it’s crucial to understand your financial situation and how loan repayment will affect it. This is the time to talk things over with your fiancé or fiancée—you know, the person you’re about to marry.
After all, you don’t want your marriage to founder immediately on the shoals of financial hardship. You may decide instead that a wedding loan is not the best idea for your particular situation. Charging wedding expenses to a credit card might be a better option.
Another important factor to consider is whether you can minimize the size of the loan by cutting back on wedding expenses. Is it more economical to consider a lesser wedding budget? Is it worth it to take on excessive debt, when you and your affianced are about to embark on a new life together?
These are the weighty matters that should be considered before taking out a substantial and likely stress-inducing personal wedding loan.
Things to Consider Before Getting a Loan
Now, before you take out a wedding loan, there are a few things you need to consider and prepare for.
The first thing is to make sure your financial house is in order. This is a step that can’t be ignored. And this means you need to have good credit.
If you’re wallowing in debt, you can forget to get a wedding loan. In fact, if you’ve ridden with debt, you should probably consider a no-frills wedding or perhaps postpone it altogether.
In any case, you’ll have to know your credit score before you begin the application process. Anything above 700 is a good credit rating.
You’ll also need to assemble your financial documents. This shouldn’t be too difficult—a wedding loan will require the same documents and material that any other personal loan requires. This includes bank statements, proof of income, debt info, etc.
The Benefits of a Wedding Loan
So what are some of the top benefits of taking out a wedding loan?
Well, it turns out there are quite a few. We’ve put together a list of eleven of the major advantages of using a wedding loan to finance your wedding.
Yes, it so happens that wedding loans are a convenient way to get money.
If you’re planning an elaborate wedding, you’ll soon discover that you’re in dire need of liquid cash. This is because venues and vendors want cash upfront in order to contract their services or book a location.
And this can be a problem if you don’t have large amounts of cash lying around in your bank. A wedding loan helps by disbursing a large sum of money to you right away, which you can use to cover various wedding expenses.
2. Usually Better Interest Rates
This works if you have a strong credit history and a good credit score. In this case, there’s a good chance that you can qualify for a lower interest rate on your wedding loan.
So, if your finances are healthy by and large, you can end up getting a better interest rate than if you choose to finance your wedding with a credit card.
3. Get the Money Right Away
Again, there’s something to be said about having money to work with immediately.
In most cases, a lender will review your application and either approve or reject it within a short space of time. If approved, you’ll be able to access the funds in a few days.
4. Easy to Get
You don’t have to go through any extra hoops to get a wedding loan.
The process is very simple, and in most cases, you can do it online. If you have all of your financial documents in order, you can apply for a wedding loan in just a few minutes.
5. Improve Your Credit Score
If you have no doubts about your ability to pay back your loan on time, then taking out a wedding loan is a great way for couples to boost their credit score. This is a good thing when starting a new chapter in life, since a higher credit score makes it easier to secure loans later on.
6. Many Loans Don’t Charge for Pre-Payments
If you choose your loan wisely, it’s possible to pay off your loan early without incurring any penalty fees.
This can save you quite a lot on accruing interest payments later on. And if friends or parents are helping pay for the wedding, you can even pay back the loan without paying any interest.
7. The Wedding of Your Dreams
As we all know, weddings don’t come cheap. That lump sum of cash means you can finance the wedding you’ve always dreamed of.
8. Many Options
When it comes to securing a wedding loan, there are a huge variety of lenders to choose from. So you have plenty of options, with different terms and loan repayment plans.
9. Easier Budget Management
With a series of fixed payments, it’s easier to manage your expenses and overall budget. This can help you from going deeper into debt through excessive credit card expenses.
10. Predictable Fixed Interest Rates
It might not seem like much, but predictable interest rates help you avoid nasty surprises later on.
11. Peace of Mind
A wedding loan can help give you a little breathing room, by offsetting the financial burden from you and your family and channeling it into fixed monthly payments.
Finance the Wedding You Always Dreamed Of
The bottom line is this: if you’re fretting about your wedding expenses, it might be time to consider a wedding loan.
If you have alternatives, then by all means pursue them first. But if you find yourself strapped for cash, but unwilling to forgo the wedding you’ve always wanted, a wedding loan might be the best option.
We hope you found this article informative and useful. Please check out the rest of our site for more lifestyle and financial advice.