The average cost of a wedding in the United States is $26,444. Most people don’t have this amount of money just lying around and saving up for this sum can be tough. It may seem like there's only one option: a wedding loan. Here is an overview of wedding loans so you can determine if they are right for you.
What is a wedding loan?
A wedding loan is a type of personal loan that you borrow to cover wedding expenses. The interest rates on the loans will vary based on the company, your credit score, income, and the amount you need to borrow. With that being said, you should expect to see rates that are around 5.99% and higher. Typically, these loans are unsecured, meaning you don’t have to put anything up as collateral. Term lengths also vary from company to company but can be anywhere from 24 to 84 months depending on the amount you’re wishing to borrow.
How do you get a wedding loan?
You cannot walk into a bank and just ask for a wedding loan. What you’re looking to do is use a personal loan for the use of wedding expenses. Various websites allow you to get a wedding loan such as MyWeddingLoans and LightStream. Here, you can apply for a personal loan without ever entering into a bank. Keep in mind that some websites may not be trustworthy. Before you ever apply for a loan, you need to research the company carefully to ensure that it is reputable.
How much can you get with a wedding loan?
The amount of money you can get from a wedding loan depends on your credit. If you have a good credit score and a steady source of income, you can potentially get a nice sum of money. The amount you can get for a personal loan can vary greatly, from thousands of dollars to tens of thousands. Determining how much you can borrow is based on your income, commitments, and your desirable loan details. Remember, when you’re looking at borrowing for a wedding loan, don’t take more than you need. Taking extra may seem like a great idea short term, but you’ll end up paying a fair amount of interest in the long run.
Should you get a wedding loan?
Most advisors will tell you no. Getting a wedding loan is very expensive, and can end up costing much more than you think. If you get $25,000 with a 48-month term and 9.44% interest, the total cost of your loan will cost $30,114 by the time you’ve completely paid it off. That’s an extra $5,114 that you can add to the cost of your wedding. Of course, it isn’t appealing seeing the numbers typed out, but a wedding loan may be the only way to pay for your event.