The average American couple spends more than $30,000 on their wedding. From renting a venue and hiring a photographer to paying a caterer and bringing a DJ on board, putting together a wedding is not cheap.
There are some couples who save up money in the months leading up to their weddings to pay for them. There are others who turn to their parents for financial assistance or find ways to have a budget wedding. And there are even some who use wedding loans to finance their big days.
If you’re thinking about taking out a wedding loan to pay for your nuptials, it’s definitely not the worst idea in the world. It’s an easy way to get your hands on the funds you’ll need to pay everyone associated with your wedding without racking up a ridiculous amount of credit card debt.
Here is what you need to know about wedding loans before applying for one.
Wedding Loans Are Personal Loans
First things first: if you’re interested in applying for a wedding loan, you should not walk into your local bank and ask, “Can I please apply for a wedding loan?” They won’t have any idea what you’re talking about.
That’s because wedding loans aren’t actually called “wedding loans.” They’re simply called personal loans, which are loans that can be used for almost any purpose. It’s the same kind of loan you would apply for if you were going to borrow money to pay down debt or take on a home improvement project.
There are lots of different lenders that will provide you with access to personal loans. It’s your job to find one that will offer you a loan in the amount that you want with a fair and reasonable interest rate attached to it.
They’re Available in Almost Any Amount
How much money are you interested in borrowing to pay for your wedding? Depending on how big it’s going to be, you might be thinking about taking out a wedding loan for anywhere from $5,000 up to $50,000.
There are some limitations on how much money a lender will give to you when you apply for a wedding loan. For example, you might not be able to get a $50,000 loan for a wedding if your credit isn’t great (more on that later!).
But generally speaking, there isn’t one set amount that you’ll be restricted to when you put in an application for a wedding loan. You can borrow a little bit of money if that’s all you need or enough money to fund your entire wedding if you don’t have any of your own money saved up.
They Can Be Used for Any Aspect of a Wedding
The lender who gives you a wedding loan can put a limit on how much money they’ll give to you for your wedding. But they cannot tell you how to spend money once they give it to you.
Most people borrow money for a wedding to pay for something like the perfect venue space or the band that they’ve been dying to book for their big day. But if you want to borrow $5,000 and spend it all on confetti so that you can drop it on your guests at the end of the night in the middle of the dance floor? Have at it!
Wedding loans can be used to pay for any portion of your wedding. You have the freedom to use one to buy whatever you want once it’s in your hands.
You Don’t Need Great Credit to Get One
If your credit report has seen better days, you might not think that your credit score is high enough to land a wedding loan. But this couldn’t be any further from the truth!
While a great credit score will usually give you more options as far as a wedding loan is concerned, you can still qualify for certain loans even if you have bad credit. It’s all about finding a lender that specializes in giving out loans to those with less-than-desirable credit scores.
You might need to meet some basic criteria to take out a wedding loan if you have bad credit. For instance, some lenders will require those with bad credit to have an active bank account and good credit history with regards to personal loans.
But as long as you meet the criteria, you can usually get immediate access to a wedding loan and have funds deposited into your bank account quickly.
You Can Pay Them Back Fast
Weddings can be very expensive for couples. But at the same time, they can also be very lucrative for them.
Studies have shown that, on average, wedding guests give about $160 to couples on their wedding days. And that number spikes to more than $180 for couples who get married in the month of August.
That means that, if you invite about 100 people to your wedding, you can expect to pocket roughly $16,000 at the end of it thanks to the wedding gifts given to you by your guests. You can then turn around and use that money to pay off the wedding loan that you took out earlier.
When you look at it like this, you’ll feel much better about taking a loan out in the first place. You won’t have to worry about it hanging over your head for very long since you’ll usually come into a bunch of money when your wedding day finally comes.
Apply for a Wedding Loan Today
Planning out a wedding can be an extremely stressful experience for couples. It can be especially stressful for those couples that aren’t sure how they’re going to pay for everything related to their wedding. It can put a real damper on their excitement.
Taking out wedding loans is a great option for these couples. It allows them to spend more time focusing on their wedding plans and less time thinking about how they’re going to pay for their wedding.
Would you like to learn some ways to make planning a wedding easier on you and your soon-to-be spouse? Read our blog to see the 10 steps you should take while planning a wedding.
