Should You Get a Wedding Loan in 2024?

Q: How do you qualify for a wedding loan?

To qualify for a wedding loan , you need to meet the lender's credit score and income requirements. Lenders also consider your debt-to-income ratio to ensure you can manage the additional debt. Providing proof of income, employment history and a good credit score increases your chances of approval.

A wedding is an important milestone, but it can be expensive. According to the Knot, the national average wedding cost in 2023 was $35,000. To afford such an event, some people turn to personal loans, which provide a lump sum of money to be repaid over time — anywhere from two to five years.

While a personal loan can help you realize the wedding of your dreams, it may not be practical to go into debt as you embark on a future of shared financial responsibility. By understanding how a wedding loan works, weighing its pros and cons and exploring some funding alternatives, you can decide how to make the most of your special day and the future ahead.

Key Takeaways

A wedding loan is a personal loan taken to fund a wedding and cover any associated costs.

A wedding loan lets you finance your wedding while protecting your savings and avoiding credit card debt.

A wedding loan is a debt you need to repay. If left unchecked, it can lead to overspending and become a source of marital stress.

What Is a Wedding Loan?

A wedding loan is a personal loan taken to fund a wedding. You can get one from banks, credit unions or online lenders. Wedding loans provide a lump sum of money upfront, which can range from $1,000 to $100,000, depending on the lender. These loans usually have fixed interest rates and set repayment terms, making it easier to budget for monthly payments.

You can cover a wide range of expenses with a wedding loan, including the following:

Expense	Average Cost in 2023
Reception Venue	$12,800
Engagement Rings	$5,500
Wedding Dress	$2,000
Wedding Cake	$540
Wedding Planner	$2,100
Wedding Photographer	$2,900
Florist	$2,800
Catering	$85 per guest

Source: The Knot’s 2023 Real Weddings Study

It’s up to you whether you want to use a wedding loan to cover all or some of your wedding expenses, but it helps to calculate your costs first. You can start by categorizing your expenses and determining which requires the most funding. A wedding expense calculator can also help you understand how much you need to borrow.

Pros and Cons of Wedding Loans

Getting a personal loan for a wedding can help you afford an opulent ceremony. However, this means taking on debt at the start of your marriage, which can put a strain on you and your spouse. Weighing the benefits and drawbacks should help you determine if this option is practical for your needs and situation.

Takeaways

PROS:

Immediate Funding: A wedding loan provides immediate funds to cover all wedding expenses.
Fixed Interest Rates: Most wedding loans have fixed interest rates, which make budgeting easier.
Flexible Use: You can use the loan for any wedding-related expense without restrictions.
Fixed Repayment Term: Knowing the repayment term helps you plan your finances better.
Protect Your Savings: A wedding loan helps you avoid dipping into your savings, preserving them for future needs.

CONS:

Debt Burden: Taking out a wedding loan means starting your marriage with debt.
Source of Stress: Having debt may make financial management more complex, leading to marital stress.
Potential Fees: Some wedding loans come with origination fees or prepayment penalties, adding to your expenses.
Delayed Life Plans: Paying off a wedding loan can delay other financial goals, such as buying a home or starting a family.

Is a Wedding Loan Right for You?

A wedding loan is a significant financial commitment and may not be ideal for every couple. While it can be a good idea if you can afford the monthly payments, the financial obligation means there’s less money to put toward other financial goals.

Before you pursue a wedding loan, it's wise to ask yourself some important questions:

How much do you need to borrow?

Calculate your total wedding costs and determine how much you need to cover them. Borrowing more than necessary can lead to higher interest payments.

Who will pay for the loan?

Decide whether you or your partner will take on the loan or if you will share the responsibility. Clear agreement on this prevents future conflicts. Remember that jointly managing the debt requires good communication and financial planning.

How will the payments compare with your income?

Assess your monthly income and expenses to see if you can afford the loan payments. If you think you will struggle to make monthly payments, it’s a good idea to cut back on certain wedding expenses where possible.

How long do you plan to pay off the loan?

Consider the loan term and how long you'll be making payments. A longer term means lower monthly payments but more interest paid over time. Make sure to choose a term that balances affordability and total cost.

Steps to Getting a Wedding Loan

As with any personal loan, it’s best to shop around to find lenders that offer the terms and rates that best suit your situation.

1
Calculate How Much You Need
Estimate your total wedding expenses to determine how much you need to borrow. Tally all costs, including the venue, dress, catering and other essentials. This ensures you borrow the right amount without overextending yourself.
2
Determine Your Eligibility
Check your credit score and financial situation to see if you qualify for a wedding loan. Lenders look at your credit history, income and debt-to-income ratio. Knowing your eligibility helps you target the right lenders and loan products.
3
Get Prequalified
Many lenders offer prequalification, which gives you an idea of the loan amount and interest rate you might receive. This step involves a soft credit check and does not impact your credit score.
4
Compare Loan Offers
Research and compare loan offers from different lenders to find the best terms and interest rates. Look at the annual percentage rate (APR), fees and repayment terms. Doing so ensures you get the best deal for your financial situation.
5
Submit an Application
Once you choose a lender, complete the loan application process. This involves providing personal and financial information, including proof of income and employment. Submitting a complete and accurate application prevents delay and increases your chances of approval.
6
Receive Funds
If your loan is approved, the lender will disburse the funds to your bank account. Depending on the lender, this process can take a few days to a week. Once you receive the funds, you can use them to pay for your wedding expenses.

Alternatives to a Wedding Loan

A wedding loan isn’t the only option available to help you fund your special day. Some alternatives include:

Budget and Save

Create a detailed wedding budget and start saving early to cover the costs. Setting aside money each month can help you avoid debt. This method also encourages financial discipline and planning.

Ask for Help From Family Members

Consider asking family members for financial assistance as a gift or loan. This can reduce the amount you need to borrow and lower your overall debt. Ensure clear communication and agreements to avoid misunderstandings.

Defer Extra Costs

Postpone nonessential wedding expenses until you have more funds. This can include extras like fancy decorations, premium photography packages or luxury honeymoon plans. Deferring costs helps you stay within your budget without sacrificing the core elements of your wedding.

Downsize the Celebration

Scale down your wedding to fit your budget, focusing on the most meaningful aspects. Consider having a smaller guest list, simpler decor or a less expensive venue. Downsizing can significantly reduce costs while still creating a memorable event.

Use a 0% APR Credit Card

If you have good credit, a 0% APR credit card can help you finance wedding expenses without paying interest for a promotional period. But make sure you can pay off the balance before the promotional period ends to avoid high interest rates.

FAQ About Wedding Loans

We answered some commonly asked questions to help you better understand how wedding loans work and determine whether taking one is the right step for you.

How do you qualify for a wedding loan?

To qualify for a wedding loan, you need to meet the lender's credit score and income requirements. Lenders also consider your debt-to-income ratio to ensure you can manage the additional debt. Providing proof of income, employment history and a good credit score increases your chances of approval.

What are the interest rates for wedding loans?

According to the Federal Reserve, the average interest rate for a 24-month personal loan is 12.49% in February 2024. Your actual interest rate may vary based on your credit score, loan amount and loan term. As always, compare offers from multiple lenders to find the best rate for your situation.

How long do you have to repay a wedding loan?

Repayment terms for wedding loans typically range from one to seven years. Shorter terms usually mean higher monthly payments but less interest paid overall. Longer terms result in lower monthly payments but higher total interest costs over the life of the loan.

How quickly can you get a wedding loan?

The time it takes to get a wedding loan can vary by lender, but many offer fast approval and funding. Online lenders often provide prequalification and approval within minutes, with funds deposited into your account within a few business days. Traditional banks and credit unions might take longer, usually up to a week.

What happens if you can't repay your wedding loan?

If you can't repay your wedding loan, you risk damaging your credit score and accruing additional fees and interest. Missed payments can lead to late fees and collection actions from the lender. Communicate with your lender if you encounter financial difficulties to explore potential solutions, such as a modified repayment plan.

About Zachary Romeo, CBCA

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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sources

Federal Reserve. "Consumer Credit." Accessed September 18, 2024.
The Knot. "The Knot 2023 Real Weddings Study." Accessed September 18, 2024.

The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

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