Compare personal loans for your wedding
Your wedding day should be one of the happiest days of your life (fingers crossed). However, it can also be one of the most expensive. In 2022 the average cost of a wedding rose to its highest level yet – a whopping £32,000 according to Money Helper. And that’s not all… Unfortunately the tradition of parents acting as the main source of funding for the big day might have run its course for many families, with 51% of couples receiving little support and 32% funding the day completely by themselves (The Independent, 2017).
If, like most people, you don’t have £32,000 lying around or burning a hole in your back pocket, then chances are you’re probably looking at the various ways you could finance your wedding day and honeymoon. This guide is designed to help you decide if taking out a wedding loan is the right course of action for you, and to help you compare wedding loans from a range of lenders.
Key features of wedding loans
When people talk about a wedding loan, they’re often talking about an unsecured personal loan, typically at a fixed rate of interest. Let’s break that down a little. “Unsecured” loans are based on creditworthiness, rather than the use of property or other assets as collateral. With a “Fixed-rate” loan, the interest rate you’re charged will remain level, or “fixed”, for the full term of the loan, and you can calculate beforehand exactly how much the loan will cost you in total.
Here are some of the key features of personal loans:
What is APR?If you’re comparing any credit-based products, it won’t be long before you’ll come across the Annual Percentage Rate (APR). This figure is designed to provide an annual summary of the cost of a loan. It takes into account both interest and any mandatory charges to be paid (for example an arrangement fee) over the duration of a loan.
All lenders must calculate the APR of their products in the same way, and must tell you the APR before you sign an agreement, so for consumers it can be a handy tool for comparison.
Bear in mind, however, that lenders are only obliged to award this rate to 51% of those who take out the loan – the other 49% could pay more. That’s why it’s often referred to as the representative APR.
Wedding loan Vs. credit card
There’s more than one way to finance a wedding. A personal loan is a popular option, but some people might simply “put it on plastic”. Is that a crazy choice? Not necessarily, but there’s advantages and disadvantages to both routes, and which of the two is better for you will depend on your individual circumstances. Here are some of the key considerations (this is not an exhaustive list):
Ultimately if you plan on making numerous non-cash purchases for the wedding as and when it suits you, then a credit card could work out cheaper, however if you’re not disciplined about repayments, and you think you might be tempted to make additional purchases on the card in future, then you could easily end up paying more overall.
Financial obligations to consider for your wedding
Whether you want your big day to be homemade and intimate, or a luxury extravaganza, you’ll need to consider the cost of the following products and services. It’s important to have a clear budget set out in advance, and a plan for if you exceed this.
- Engagement party invites
- Engagement party venue
- Engagement party food and drinks
- Hens/bucks party and bridal showers
- Wedding invites and thank you gifts
- Wedding dress and accessories
- Bridesmaids dresses and accessories
- Groom/groomsmen suits and accessories
- Flowergirls, ushers and pageboys
- Wedding location/church and marriage celebrant
- Reception venue, catering and decorations
- Photography and videography costs
- Entertainment considerations
- Makeup, hair facials for bride and bridal party
- Transport to and from wedding
- First night hotel stay
Am I eligible for a wedding loan?
You should only apply for a loan if you’re certain you can meet the repayment terms. Most lenders will then require you to meet additional criteria such as:
If your credit history has had a few bumps in the road, then don’t cancel the wedding just yet. There are specialist lenders who focus on loans for bad credit, and who will look at more than just your credit score when considering your application.
Wedding personal loan FAQs
Will you be approved?
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