How You Can Benefit From a Wedding Loan

One of the most important issues to settle when you decide to get married is how to cover the costs associated with your wedding. Everything from getting the marriage license to paying the caterer requires money. According to 2021 statistics, the average cost of a wedding is $28,000. Some weddings cost significantly more.

You may not have the personal finances or family assistance needed to pay for your dream wedding. An alternative is to reduce expenses by keeping your ceremony as small as possible. However, you may not want to cut financial corners on your big day. A wedding loan is one way to keep the wedding exactly the way you want it when your finances do not line up with your vision of the perfect wedding day. A wedding loan is a personal loan taken out to cover wedding costs. Here are some of the potential benefits of wedding loans.

Wedding Loans Provide Total Spending Flexibility

Every wedding is different, but weddings all have certain types of expenses in common. For example, catering is a standard wedding expense. It is also common for couples to purchase or rent clothing for themselves and members of their wedding party. Other common expenses you may face when planning your wedding include:

  • Transportation
  • Music
  • Photography
  • Videography
  • Wedding Venue
  • Wedding Rings

Despite those and other wedding expenses being common, some surprise expenses can arise. You may also want to plan a wedding that features extra non-traditional elements. In such a case, you must often pay unforeseen bills associated with your wedding. A wedding loan allows you to spend the borrowed money for any purposes you desire. Therefore, you can easily pay extra fees when needed.

Wedding Loans Remove Family Obligations

Families often chip in to pay for weddings. However, you may not want your family or your spouse’s family to have that financial burden. Perhaps your family members are already experiencing too many financial strains. You can use a wedding loan to lift those obligations and burdens off the shoulders of your family members. Then they can enjoy being guests at your wedding without worrying about the expenses involved.

Wedding Loans Allow You to Avoid Unnecessary Fees

One of the other popular ways to pay for a wedding is the use of credit cards. However, the use of credit cards to pay for your wedding may present several problems. For instance, credit cards often have higher interest rates than personal wedding loans. Credit cards also often charge processing fees, which can add up quickly when you use them to pay for multiple aspects of your wedding.

You can avoid paying various credit card fees when you take out a wedding loan, instead. You only have to worry about making one low monthly payment. Therefore, you can often repay a wedding loan faster than wedding-related credit card debt. Additionally, a wedding loan typically has a fixed interest rate. You do not have to contend with unpleasant interest rate increases often imposed by credit card companies.

Wedding Loans Offer Stability When Budgeting

A wedding loan is often more beneficial than paying for nuptials with credit cards is easier budgeting. The minimum monthly payment you must make to repay a wedding loan is fixed. Its predictable nature allows you to know exactly what to expect. Conversely, minimum monthly credit card payments frequently fluctuate. Since you cannot predict them, you might have difficulty sticking to a tight budget.

Wedding Loans Protect Savings Accounts and Other Assets

You might feel tempted to pay for your wedding using your savings. However, a savings account is often better used for long-term or emergency purposes. You could also feel tempted to tap into other assets by selling personal items or cashing out certain accounts early. Such actions can often leave you in deeper debt later or needing to pay large fees sooner than you might expect. A wedding loan allows you to leave your other assets intact and use only designated loan funds for wedding planning.

You May Increase Your Credit Score Using a Wedding Loan

Many personal wedding loans are monitored by credit monitoring agencies like Experian. Therefore, a wedding loan may make your credit score better. Making loan payments on time can help your score increase. Paying your loan back early can also reflect positively on your credit rating. However, making late payments on your wedding loan has the opposite effect.

Top Ways to Get a Wedding Loan

There are several ways to get a wedding loan and companies that offer wedding loans. To begin, you must typically meet basic requirements. You must also have proof of identity and income. A credit check is also typically required. When you are ready to a apply, you can request a loan from a local financial institution, but it may not offer the best rates or perks. You may also opt to apply for a wedding loan online. Here are some top websites for wedding loans:

  • OneMain Financial – OneMain Financial offers personal loans with minimal requirements. You may qualify for a OneMain loan, even if you have bad credit.
  • Upstart – If you have very little credit history but what you do have is positive in nature, Upstart may provide you with an excellent wedding loan.
  • Upgrade – Upgrade provides useful wedding loans, but it is best known for providing loans when applicants apply with co-signers.
  • LightStream – LightStream offers low-interest loans for qualifying applicants.
  • SoFi – If you already have excellent credit, SoFi may provide a perfect wedding loan for you. SoFi loans typically have low interest rates and provide up to $100,000 in wedding funds.

The Long-Term Impact of a Wedding Loan

Although a wedding loan has many potential benefits, it can also have some possible drawbacks. It is important to understand the possible long-term impact a wedding loan can have. You and your spouse must start married life with loan debt when you use a wedding loan to fund your ceremony. On average, it takes four to seven years to repay a wedding loan. As long as you do not mind that obligation, a wedding loan may work for you.