Wedding Loans with Bad Credit
Are both you and your partner ready to tie the knot, but you are not sure your current wedding fund will cover all the expenses? Well, you’re not the only one. Most couples underestimate the total cost of their wedding and end up borrowing money. The venue and the reception typically cost the most, shortly followed by the wedding attire and rings. Along with them, smaller expenses will pile up and often exceed your estimated budget. Financing a wedding isn’t easy, but there are enough tested options to save your big day.
What Is a Wedding Loan?
A wedding loan is essentially a sum you borrow to fund your special event, engagement rings, hotel reservations, your honeymoon. In short, any wedding-related expenses that you borrow money for go under the category of wedding loans. It’s just a regular loan that you can use for anything. Statistics show an average cost of almost $39,000 for the happiest event in your life. It makes sense that so many couples borrow money to fund it.
Reasons to Consider a Wedding Loan
Most couples go for a wedding loan when they are halfway through their preparation process. Some common situations for borrowing money include:
- The wedding fund not being enough for everything planned
- Your vendors asking for upfront deposits to secure your venue or caterers
- Paying for the wedding ring or attire
- Unforeseen expenses gathering
- Keeping your savings account for future emergencies only
- Preparing ahead of time for unexpected costs.
If you and your partner are the only ones paying for the wedding without any help from your relatives, you could have more reasons to take a loan.
The Pros and Cons of a Wedding Loan
Weighing the pros and cons of a wedding loan is a matter of budgeting and planning. On top of that, making major decisions as a couple is a good habit to develop.
- You can get fast funding. Online lenders offer financing in a matter of days or even hours.
- Flexible loan amounts. Loans nowadays offer a wide range of options. From a couple of hundred dollars to pay for a last-minute emergency to a few thousand.
- You can have your dream wedding. If you are unwilling to compromise, there are enough financing options for all borrowers.
- Paying off the loan could be challenging. Depending on the loan terms and conditions, the interest rate can affect your budget until you repay the full amount. In other words, before taking a loan, consider its total cost, including the APR.
- High interest. Depending on what loan offer you manage to find, the interest rate could be less than convenient long-term. Before agreeing to a term, make sure you are comfortable paying it back.
- You risk collecting more debt. If repaying your loan doesn’t exactly go according to the initial plan, getting into more debt is easy. Added debt is not a recommended way of starting a marriage.
Use your best judgment to decide if you need a loan to finance your wedding or you’d rather start your married life debt-free.
Where Can I Find Wedding Loans?
You can borrow money from a bank, a credit union, or online lenders. Shop around to find the best offers banks and credit unions can make you. Banks and credit unions will thoroughly investigate your credit history before making a decision. If you have a good score, do your research and apply with confidence. Going with a personal loan, collateral, or a co-signer will get you a more convenient interest rate.
For a speedy reply and quick funding, submit your application on our website to reach online lenders. If you are approved, you will get the funds for your event in one business day.
Top Lenders for Wedding Loans
When your credit score is excellent (750 and above), you will find it easy to get a loan. In case you are one of the borrowers with a fair credit score (between 640 and 699), there may be fewer options available. For a loan amount of $15,000, compare the lenders’ terms below to get an idea about fair credit possibilities.
- Lightstream. You can take a loan for an APR of 3.99-19.99% and repay it in 2 to 7 years. Funding is fast if you qualify, and there are no processing or origination fees.
- SoFi. For an APR ranging between 5.99-18.83%, the loan repayment term can be between 2 and 7 years. They normally take one day after verification to process the loan transfer. There are no penalties for prepayment.
- Upstart. If you go with this lender, expect an APR of 8.27-35.99% for a minimum term of 3 years. The origination fee ranges from 0% to 8%. Funding is usually completed within three business days max. A late payment fee of 5% or $15 is applied in case of repayment delays.
- Discover. As a customer, you will have an APR of 6.99-24.99% and between 3 and 7 years to pay back your wedding loan. There are no prepayment penalties, but a late flat fee of $39 applies.
- LendingPoint. The APR for the amount specified ranges between 15.49% and 35.99%. The loan term can be from 2 to 5 years. An origination fee of up to 6% may apply. In case of delayed payments, there is also a late fee of $30.
The Cost of a Wedding Loan
The cost of your wedding loan depends on the amount and interest rate, loan duration, as well as your credit score. If you need more money, you should try to get a lower interest. For instance, you want to get a $5,000 loan, and the lender approves it for a term of 36 months (3 years). With an estimated APR as low as 6%, your monthly payment would be $152.11. The total interest paid would add up to $475.90. Be aware that other fees may apply. The calculations are for a fair credit score. The higher your creditworthiness, the more convenient offers you will receive.
How to Qualify for a Wedding Loan
Preparing for a wedding loan is essential if you want to get a good deal. First of all, crunch the numbers to see exactly how much money you need for your event. Deduct all monetary contributions from relatives and friends, as well as your own, to get the sum you need to borrow. Whenever you make adjustments, redo the calculation to see exactly where you’re standing.
If time allows it, prepare to take a loan. Pay off all your debts and pay your bills on time to improve your creditworthiness. Before deciding on a loan, take time to research the market options and narrow your search to what will work best for you.
In case you cannot get a personal loan or need a lower interest rate, ask a close friend or a relative to be your cosigner. They would reassure the lender that they will make the payment if you have any issues. Adding a cosigner will get you a more convenient interest rate.
Wedding Loans with Poor Credit
With BadCreditCashASAP, you can get a wedding loan even with bad credit. Desperate times ask for fast responses. That’s exactly what the direct lenders in our network offer. You can apply online to get an answer asap. No collateral is needed; fill out the form with your details and wait for a reply. Applying for an unsecured loan will not affect your credit score in any way due to a soft credit check. Our service comes at no additional charge for borrowers. We’ll be happy to help you have the wedding you’ve always wanted.
4 Steps to Apply for a Wedding Loan
Getting a wedding loan is not very different from taking a personal loan. Staying organized and keeping your financial status up-to-date will ensure a smooth application process.
- Evaluate how much you need. When you have a specific number, assess what loans you or your partner could qualify for. When deciding what loan is better for your case, consider the amount of money you need, how fast you would pay off your debt, the interest and fees involved. Depending on your credit score, you might want to consider a backup plan or double-check your savings account.
- Compare loan options. Depending on the loan you want, you’ll have to choose between a bank, a credit union, payday lenders. See what lender has better terms and fees, which one can finance you faster. Calculate the total cost of your wedding loan, make sure you can make payment on time.
- Apply for the loan you want. Once you decide, choose the services you trust more and fill out an application form. Borrowers must include their details, proof of employment, income, and any other information required.
- Get your money. In case of approval on both sides, the lender will transfer your loan on the agreed date. Making your down payment for the venue or covering the cost of the reception should be a breeze. Manage your funds responsibly and make your payments on time.
Wedding Financing Alternatives
If you’ve decided against a loan, there are some steps you can take to make sure you afford to pay for your wedding.
- Review and cut down on the expenses that are not necessary.
- Use some funds from your savings account.
- Ask your friends for help.
Sitting down to review your wedding expenses could reveal some things you might be able to reduce. It can be anything from renegotiating a part of the contracts to going for more cost-effective options or giving up on unnecessary items. When your budget gap is not too big, a simple reorganization will save you time and money. If you access your savings account funds, you can easily use them to cover your wedding expenses. In very few cases, it makes sense to borrow money instead of taking money from your savings.
Ask your friends to help you find better deals. Some of them could recommend a good photographer they know or a reliable catering service. It costs them nothing to browse through their contacts and make a recommendation. To you, that could mean reducing your costs to the extent you no longer need a loan.
In a nutshell, borrowing money for your wedding day could make sense, as long as both you and your life partner are on the same page. Don’t forget to compare options before saying ‘yes’ to a loan.