Are Wedding Loans Worth It?

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So you’ve finally reached the point in your life when you want to settle down with the love of your life. Amidst the excitement of starting a new chapter with someone extraordinary comes the pressure of planning for your special day. It’s a reality that every party – especially a grand one like a wedding that celebrates you and your soon-to-be spouse’s union – costs money. If you don’t have enough savings, you’ll need to scrape for funds available such as those from your credit union or online loans like Payday Depot. But are wedding loans worth it?

What’s a Wedding Loan?

In its very essence, wedding loans are simply unsecured personal loans that you take out to add to the budget of your big day. Wedding loans are utilized to pay for wedding-related expenses such as the venue, attires, and videography, among others.

The interest you need to pay after getting your hands on your wedding loan varies depending on many factors. However, personal loan rates range from 5.99% and up to 35.99% and can be issued and paid back on different terms.

How Can You Get a Wedding Loan?

Treat your wedding loan as standard financial assistance – you can get it from a bank, a credit union, or an online lender. If you’re lucky, you can also find lenders among your family and friends who want to help you in bearing the expenses.

You may not find a loan tailored explicitly for weddings, but there will always be personal loans available for you to grab. Most of the time, it’s the credit unions that can provide you with the least costs of getting a personal loan. This is because federal credit unions have Annual Percentage Rates (APR) capped at 18%. Sadly, getting such a loan is a rather slow process and is only an option if you belong to a credit union.

Remember that the highest personal loan interest is 36%, and anything more than that is questionable. Even if you’re desperately in search of a loan, you still need to think twice about the interest you’ll need to pay in the future.

What Are the Factors Considered When Taking Wedding Loans?

Your lender will not approve of your credit just because it’s for your wedding. You will still need to go through the proper application process to claim the amount you intend to borrow.

Here are some of the factors that play a role in taking out a wedding loan:

  • Your credit score
  • Your current and expected income stream
  • Your debt situation
  • Who your lender will be
  • The availability of a co-borrower

Is It Wise to Take Out a Wedding Loan?

Although you may want your wedding day to be the grandest, most luxurious day in your life, you should remember about the expenses you would face right after the wedding. So generally speaking, wedding loans are worth the hassle only to a reasonable extent. Spending all of your life savings alongside thousands of dollars in loans in just a day is not a good way to start your journey as a newly-wed couple.

In the end, what makes your wedding day memorable is the person you’re about to marry, your family and friends, and the experience all of you will create together.

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