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Personal loans for wedding expenses

Personal Loans for Wedding Expenses

Personal installment loans for wedding expenses give borrowers the money they need upfront to plan their big day. A personal loan typically provides a few thousand dollars, although the loan amount depends on the lender and the borrower’s creditworthiness

Continue reading to learn about different wedding expenses and using personal installment loans to finance your special day. 

Different Types of Wedding Expenses To Expect

If you haven’t been a part of wedding planning before, you may not be entirely sure about how much an average wedding costs and what items and services make up those costs. 

According to the Knot, the national average cost of a wedding is $30,000.1 That does not include the cost of financing a wedding ring for each partner! Depending on what you want, that average cost can go up or down. 

Here are a few with their average costs: 

  • The Venue — The average cost of a wedding venue is $16,107. Venues also require deposits, which can be a large percentage of the total cost. 
  • Food and Drinks — One of the highest wedding costs will be catering and drink costs. The average cost for catering per person is $71, while drinks cost an average of $2,300. Wedding Outfits — Except to pay anywhere around $2,000 to $4,000 for wedding attire. If you and your partner have expensive tastes, expect that to go up to a few thousand dollars.
  • Photography and Videography — The average cost for a photographer is $2,783, while a videographer’s cost averages around $1,995.
  • A Florist — Flower costs can vary depending on color, theme, and abundance. The more flowers you want, the more your expenses will go up. The average florist cost for an American wedding is $2,534.
  • Decorations — Centerpieces, lights, table and chair decorations, and other personalization are essential. You can expect to pay a few hundred up to a couple thousand dollars for wedding decorations. 
  • The Wedding Cake — No wedding is complete without a wedding cake! Expect to pay $582 for a classic tiered wedding cake. 
  • Music — Whether you decide on a DJ or live band, there will be costs to pay. Most couples end up paying an average of between $300 to $700 for all their wedding music costs. 
  • Hair and Makeup — Everyone in the wedding party will want to look and feel their best. And so, hiring hair and makeup is recommended. Hiring a makeup artist and hair stylist will cost a few hundred dollars. 
  • The Officiant — All weddings need an officiant service to make things official. Expect to pay around $200 for an officiant at your wedding ceremony. 

Simple Ways To Cut Down on Wedding Expenses

Trying to have your wedding on a budget? Using a budget plan for couples can help you avoid spending more than you want on wedding expenses. 

Here are some money-saving and budgeting tips for couples planning to get married:

DIY and Thrifting Things

You can save a ton of money by doing things yourself and buying some items second-hand. Things like decorations, flower arrangements, and the wedding cake can all be done yourself or purchased as gently used. 

Have Your Wedding at Home

A wedding venue can cost thousands of dollars. And so, having your wedding at your home or another family member’s place can help you save that money or use it towards other wedding expenses. A backyard wedding can also feel cozier and more personal than an actual venue!

Rent Rather Than Buy and Ask About Hourly Services

You might be surprised at the different things you can rent rather than buy. But when it comes to weddings, you can rent all kinds of expensive stuff! For example, you can rent wedding clothes rather than buy them, saving you hundreds or even thousands of dollars. You should also consider booking services for a few hours rather than an entire day to save some cash! 

Wedding Loans Available for Couples With Different Credit Scores

Whether you have excellent credit or are working with a poor credit score, there are wedding loan options available. Personal loan lenders offer both secured and unsecured loans, with terms that vary based on your creditworthiness. The best personal loan option for you depends on your preferred level of financial risk.

  • Unsecured Wedding Loan — Most lenders offer unsecured personal loans. An unsecured loan does not require collateral. The loan amounts mainly depend on your credit score. 
  • Secured Wedding Loan — A secured wedding loan requires collateral from the borrower. Low-credit borrowers could get higher loan amounts with secured loans, but the borrower risks losing their assets if they default.

More Information on Wedding Loans

Personal loans can be a great way to pay for your wedding. A standard personal loan is a type of loan product with fixed monthly payments. You can find personal loans at a bank, credit union, or online by applying with private lenders. 

Below, you will find more details about these loan options:

Personal Loan Approval 

Personal loan approval will be based on a few different criteria. Your credit score, credit history, income, and ability to pay the loan will all determine approval. There will be a soft credit inquiry for pre-approval and a hard inquiry for final credit approval. A soft credit inquiry does not harm credit, while a hard inquiry can decrease credit by a few points. 

Amounts and Interest Rates for Personal Loans

Depending on the lender, personal loan amounts range between a few hundred to thousands of dollars. With excellent credit, you can typically qualify for higher loan amounts at better terms. Remember that even if you are approved, you never have to borrow more than the minimum loan amount you need. 

Interest rates for personal loans are highly competitive; personal loan APRs typically run from 4% to 36%.2 Your specific interest rate will depend on your credit score, income, and ability to repay the loan. 

The higher your credit score and income, the more money you can be approved for. And so, with an excellent credit score, you can look forward to getting the best wedding loans with high loan amounts and low rates. On the other hand, if you don’t meet the minimum credit score requirements for a personal loan, you can add a cosigner or co-borrower. 

Documents Needed for a Personal Loan 

When you apply for a personal loan, you will generally need to provide some documents. However, keep in mind that documentation may not be required for online loans. Online quick cash loans may only require basic personal information and the completion of a bank verification process. 

If you need to provide paperwork for a wedding loan, you will generally need:

  • A driver’s license or a government-issued ID
  • Proof of income (pay stubs, bank statements. etc.)
  • Proof of residency (mail, bank statements, lease agreement, etc.)
  • References (in some cases)

Fixed Rate Loan vs. Variable Loan

Standard personal loans come with fixed interest rates, meaning their monthly payments will stay the same throughout repayment. While variable interest rates can change throughout repayment depending on market trends. With varying interest, you could save money, but there is also the risk of paying more for your loan. 

Repayment for Personal Loans

Generally, repayment for a personal loan will start after 30 days of getting your loan proceeds— whether they are deposited in your bank account, mailed as a check, or picked up in person. So, don’t forget about your debt payment obligations even if you are on your honeymoon!  

Most loan terms will have one monthly payment that is due on the same day each month. Before you pay your loan early, double-check your personal loan agreement for a prepayment penalty. Not all personal loans feature repayment terms that have flexibility for early payments. 

Once you start repaying your personal loan, it is crucial to make your payments on time, as late payments will come with fees and can hurt your credit scores. 

Wedding Loan Application Process

If you’re interested in applying for wedding loans, it’s a good idea to familiarize yourself with the application process. Take a look at what you can expect below. 

StepAction RequiredDescription
1ResearchInvestigate various lenders and their loan products to find the best fit for your needs.
2Check Credit ScoreReview your credit score to understand your eligibility and potential interest rates.
3Gather DocumentationCollect necessary documents such as proof of income, identification, and proof of address.
4ApplySubmit your application online or in person, providing all required information.
5Wait for Pre-ApprovalMany lenders offer a quick pre-approval process to indicate likely acceptance.
6Review OffersIf pre-approved, review the terms and conditions of the offer carefully.
7AcceptanceIf the offer is satisfactory, formally accept the loan terms.
8Final VerificationThe lender will perform a final check of your documents and credit.
9Receive FundsUpon final approval, the loan amount will be disbursed to your account.
10RepaymentBegin making monthly payments as per the loan agreement.

What if I Struggle to Repay My Wedding Loan?

It’s not uncommon to face financial hiccups, and if you find yourself struggling to repay your wedding loan, know that you’re not alone and there are steps you can take to navigate this challenge.

Communicate with Your Lender

First and foremost, reach out to your lender as soon as you anticipate difficulty with your payments. Lenders appreciate transparency and may work with you to adjust your repayment schedule. If you don’t inform your lender, you could end up with even more financial issues. 

Consider Refinancing

If your credit score is still in good standing, refinancing could be a viable option. Refinancing your wedding loan might lower your interest rates or extend your repayment period, resulting in lower monthly payments. Shop around for the best wedding loans available for refinancing to ensure you’re getting a good deal.

Budgeting and Financial Planning

Take a hard look at your budget and see where adjustments can be made. Sometimes, reallocating funds or cutting back on non-essential expenses can free up enough money to keep up with your loan amounts.

Avoid Skipping Payments

It’s crucial to avoid skipping loan payments altogether. Missed payments can significantly impact your credit score and may incur additional fees, making the situation more difficult in the long run.

Stay Positive and Proactive

Remember, facing difficulty when repaying loan amounts is a situation many encounter, but with a proactive approach and open communication, it can be managed. Stay positive and take control of the situation early on for the best possible outcome.

Frequently Asked Questions About Wedding Loans

How can I find the best wedding loans with competitive interest rates?

To find the best wedding loans, it’s important to compare offers from multiple personal loan lenders. Look for loans with the lowest APR, which includes the interest rate and any origination fee, to ensure you’re getting a competitive deal.

Are there wedding loans available for those with fair credit?

Yes, there are wedding loans available for those with fair credit. While the terms might not be as favorable as those offered to individuals with excellent credit, many lenders are willing to work with borrowers who have less-than-perfect credit scores.

How does my credit score affect the monthly payments on a wedding loan?

Your credit score can significantly impact the interest rate you’re offered on a wedding loan, which in turn affects your monthly payments. A higher credit score can lead to lower interest rates and more manageable monthly payments.

Can I still get a wedding loan if I have a low credit score?

Yes, even with a low credit score, you may still be eligible for a wedding loan. However, the loan amount, interest rates, and terms might be less favorable, and you might need to provide additional documentation or consider a secured loan.

What documents will I need to apply for a wedding loan?

When applying for a wedding loan, you’ll generally need to provide proof of income, a government-issued ID, proof of residency, and possibly references. The exact documents required can vary by lender.

Is there an origination fee associated with wedding loans?

Some wedding loans may include an origination fee. An origination fee is a one-time charge deducted from the loan amount at the time of funding. Always check the loan terms to understand how the origination fee and other charges will affect the total loan cost.

How do I manage monthly payments for a wedding loan if I have poor or fair credit?

Managing monthly payments for a wedding loan with poor or fair credit involves careful budgeting and timely payments. Consider setting up automatic payments to avoid late fees and to help improve your credit score over time.

What steps can I take to ensure a fast approval process for a wedding loan?

Have all your documents ready, maintain a good credit score, apply online, and respond quickly to lender inquiries.

How do I perform a comparative analysis of interest rates and terms across different lenders?

Collect loan estimates from several lenders, compare APRs and repayment terms, and use loan comparison tools for an easier evaluation.

Are there any special offers or incentives for taking out wedding loans?

Yes, some lenders offer promotional rates, fee waivers, or cash-back incentives for wedding loans, especially during peak wedding seasons.

Where can I find online resources to apply for wedding loans?

Look on financial comparison sites, personal finance blogs, and lenders’ websites for information and online application processes.

CreditNinja: A Final Summary of Wedding Loans

Personal loans are flexible with loan terms, offer a variety of loan amounts, and come with highly competitive interest rates. Many people use personal loans as wedding loans, but we advise against doing so. 

At CreditNinja, we specialize in providing quick emergency loans. But we also want to warn consumers against accumulating debt. If you are planning a wedding, we suggest looking for ways to supplement your income or reduce your wedding costs. Check out the CreditNinja Dojo for tips on how to improve your personal finance, reduce your household expenses, and more! 

References:

  1. The Average Wedding Cost, According to Data | The Knot
  2. What Is a Good APR on a Personal Loan? | U.S. News
  3. Wedding Ceremony Music Cost Guide | WeddingWire
  4. How Much Does a Wedding Cost on Average (With Breakdown)? | The Street
  5. Here’s How Much the Average Couple Spends on Alcohol for Their Wedding | The Knot
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