The Best Wedding Loans & Rates Today
Getting married marks one of the happiest times of any young couple’s relationship. For millions of Americans, saying “I do” while surrounded by family and friends remains to be a significant, emotional, and exhilarating experience.
Of course, while the sentimental value of a wedding has no price tag, the months of preparation leading up to that day certainly do.
According to The Knot, the average cost of a wedding is at an all-time high, reaching $35,329 in 2016.
This means that many young couples are struggling to pay a litany of bills for dresses, suits, photographers, planners, music, food, drinks, decorations, venue rentals, honeymoon expenses, and more.
Even more conservative weddings can easily be out of reach, racking up to $10,000 in wedding-related expenses. If you don’t have thousands of dollars stashed away, how can you afford the wedding of your dreams?
For many newlyweds, taking out a wedding loan is the best way to finance their big day, but how can you be sure that you are getting the best loan for you?
What is a Wedding Loan?
If you’ve never heard of a wedding loan before, that’s because lenders do not specifically offer “wedding loans.”
Rather, they offer personal loans in varying amounts that can be applied to any debts—and in this case, that debt covers any wedding-related costs that can’t be covered by cash.
Taking out a personal loan for your wedding is a good way to cover a wide range of costs without the limitations that come from a credit card.
Instead of opening multiple credit cards, a personal loan lets borrowers use one singular line of credit, effectively keeping debt organized and more manageable.
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Important Considerations (Wedding Loans)
Although taking out a wedding loan can certainly ease financial stress leading up to the big day, it should not be taken lightly. As with any other type of personal loan, it’s important to consider how the loan will affect your financial future as a couple.
This means paying close attention to factors like:
- Interest rates
- Payment terms
- Secured vs. unsecured
Interest Rates on Wedding Loans
Choosing a wedding loan with an affordable interest rate is one of the best ways to ensure that your payments remain manageable over the life of the loan. Some lenders may offer better rates than others, so it’s important to shop around.
Having a good credit score will work in your favor when it comes to interest rates, particularly when it comes to borrowing from a local bank.
If your credit score is less than desirable, you may want to consider applying through an online financial institution to find the right interest rate for your financial situation.
Payment Terms
Before taking out a loan, it’s important to consider payment terms. How long do you have to pay back the full amount? What will the minimum monthly payments be for the length of the loan?
Wedding loans are typically available in durations of 12-60 months, so you’ll want to examine all your options to ensure that the loan can be paid back within the specified duration.
Secured vs Unsecured Wedding Loans
Most personal loans are unsecured, meaning that they do not require the borrower to put down collateral. Just like opening a credit card, unsecured loans simply require an application and an agreement to pay the loan back in full within the specified terms.
For borrowers with less than ideal credit, however, a secured loan may be the best way to get approved for a wedding loan.
Secured loans do come with a certain amount of risk, since they require collateral—like a home—for the loan amount to be issued. This means that borrower could have their home seized in the event that the loan goes into default, so secured loans should be used only as a last resort.
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Shop Around for Wedding Loans
As with any loan, it’s important to weigh your options from a variety of lenders, when considering a wedding loan.
Pay close attention to their wedding loan rates and terms, and make sure to weigh these against your financial situation to determine whether a wedding loan will be affordable over the long-run.
While there’s no doubt that weddings can be expensive, there’s no point in adding to your financial stress after the honeymoon is over. Take your time and shop around to find the best wedding loan for your unique financial needs and goals.
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