You’ve got the old and borrowed down. But something new? You might want to consider a wedding loan.
If you don’t have that money saved, you may need to turn to other ways to finance your wedding. Our guide below details the different borrowing options you have available and how to find the right one for you.
Personal loans through Prosper
You could borrow up to $40,000 for a variety of purposes, with rates from 6.95%–35.99%%.
- Recommended Credit Score: 640 or higher
- Minimum Loan Amount: $2,000
- Maximum Loan Amount: 40000
- Loan Term: 3 or 5 years
- Turnaround Time: 1-3 business days
- Simple online application process
- No prepayment penalties
Loans that you could use to finance your wedding
What are the different wedding loans and how do they work?
Couples looking for a way to finance their wedding have a few options to choose from. Which one you choose will depend on your current financial circumstances, how much you need to borrow, your outstanding debts and your active credit accounts. Here are the options you may want to consider:
- Personal loan. Consider looking for an unsecured loan, which has fewer restrictions on how you use it. That way you can borrower a lump sum to buy a dress, purchase an engagement ring and even pay for part of the honeymoon.
- Line of credit. Not sure how much you need to borrow? You might want to look into taking out a line of credit, which works by you setting up an overdraw limit on one of your active bank accounts. From there, you are able to access money up to and including that amount. You will be charged a set interest rate when you access additional money and you may also be charged fees to have this feature available to you.
- Credit card. If you already have a credit card with a competitive interest rate lower than most loan, then you may want to consider using it to make wedding-related purchases instead. Or, consider signing up for a credit card with a 0% introductory APR to cover a few purchases — just don’t go overboard or you won’t be able to pay off that balance before the intro period is over.
How do I find the right financing for my wedding?
When comparing your loans, pay special to the following features:
- Perks and discounts. Some providers may allow you to bundle a personal loan with other financial products to get a discount. Other lenders may have flexible repayment options. or if you opt for a credit card you may be able to earn rewards points for your purchases. Take a look at some features offered by these lenders and see if any of them can make your life easier (or less expensive).
- Repayment flexibility. Check if you are able to repay the loan early without penalties, or if you will be able to extend the loan if you need more time to make payments.
- Prepayment options. This is a feature that can help reduce the amount of interest you pay on your loan. Some lenders may let you make additional repayments, but they may charge you to be able to do this. This can offset any benefit you get from making the extra repayments, so check the associated fees before you apply.
- Fixed or variable interest rates. A fixed rate option can help you plan your repayments because you know what they will be over the course of the loan, but this may also mean you miss out on lower interest rates. Fixed rate loans are usually available for a maximum of five years. Variable rates start off low but fluctuate over the life of the loan, making it hard to budget for the repayments. However, these loans are generally available with repayment terms as long as seven years and you may save money from lower variable rates.
Things to consider before taking out wedding loan
Before applying for a wedding loan it’s crucial to understand the financial commitment required for servicing the borrowed amount. You and your future partner should sit down and discuss your financial situations beforehand. Below are some of the questions you should be discussing.
- What are the fees that you’ll be charged? When you look at the fees of a loan you should remember to check the upfront fees as well as ongoing charges. Upfront fees cover the cost of setting up the loan, for example establishment fees, and ongoing fees can include monthly account-keeping fees or amounts charged for using some of the features of the loan. You should also be aware of late fees NSF fees.
- What interest rate are you being offered? When looking at the rate offered by the lender, make sure to check whether the rate is fixed or variable. You can also see if the lender offers an introductory rate that can help you save money in the first stages of the loan.
- Is the loan amount and terms affordable for you both? You need to ensure that the amount you want to borrow and the length of time you want to borrow it for is offered by the lender. You can check the minimum and maximum loan amounts each lender offers and see if they suit your needs.
Other financial obligations to consider for the wedding
Whether you’re having a small ceremony, or an all out extravaganza for your big day, there is always going to be a range of items and services you may need finance for.
Consider the expenses below:
- Engagement party invites
- Engagement party venue
- Engagement party food and drinks
- Bachelor/bachelorette party and bridal showers
- Wedding invites and thank you gifts
- Wedding dress and accessories
- Bridesmaids dresses and accessories
- Groom/groomsmen suits and accessories
- Flower girls, ushers and pageboys
- Wedding location/church and marriage officiant
- Reception location, catering and decorations
- Photography and videography costs
- Entertainment considerations
- Make up, hair and facials for bride and bridal party
- Transport to and from wedding
- First night hotel stay
How can I apply for a wedding loan?
To apply for a loan to help you finance your wedding, you can first compare your options using the comparison tables above. Depending on the type of finance you’re after, you can compare products using the navigation menu at the top of this page.
When you find the right loan and would like to apply, click the ‘Go to site’ button to be directed to the lender’s website. To qualify for a loan in the US, you generally need to be over 18, be a permanent US resident and have a good credit rating.
Have the following information on hand before you apply:
- Personal details including your full name, age and proof of your identity
- Financial details including your assets, debts and liabilities
- Employment details including your income and the name and contact details of your employer
There are ways to finance your wedding when you don’t have the money available. Compare your options and make sure you’re applying for a loan that’s competitive and affordable to you on your budget.