Every couple dreams of making their special day unforgettable for both them and their family. That is why millions of Americans annually spend huge sums of money on weddings. If you are now also preparing for a wedding, you probably understand how many expenses you need to cover – a restaurant, a wedding planner, an invitation, a photographer, flowers, and much more. However, not everyone can afford to cope with these expenses on their own. That is why many couples are looking for a loan to help them cover their wedding сosts. Keep reading to find out what a Wedding Loan is, how it works, and what are the eligibility criteria for funding.
What Is A Wedding Loan?
A Wedding Loan is a simple short-term loan that is used by borrowers to pay for wedding expenses. Most often, this loan is unsecured, so you do not have to provide collateral in order for your application to be approved. Also, most often the Wedding Loan is a variation of the poor credit Personal Loan.
So, with a Wedding Loan, you can borrow money from a bank, credit union, or personal lender to cover any wedding expenses. This loan is repaid in regular monthly installments over a fixed period of time specified in your contract. The most common repayment periods for loans range from two to seven years.
How Much Does A Wedding Loan Cost?
Of course, before you apply for funding, you need to know how much the loan will cost you. The most common interest rates on unsecured Wedding Loans range from 6% to 36%. Also, you should remember that the longer the repayment period, the more interest you will pay in total.
Moreover, you should also remember that, depending on the lender, you may be charged additional fees and charges, such as an early repayment fee, late payment fee, application fee, and others, which will also affect the cost of your loan.
How Can I Qualify For A Wedding Loan?
- Check your credit. More often than not, your credit is one of the main factors influencing the approval of an application. That is why you should check and update your credit report for errors and report them if you find any. Remember that the better your credit history, the better interest rates you will get on loans.
- Add a co-signer. If you do not have such a good credit history and you are afraid that your application will not be approved, you can use the a co-signer service. You most likely know that a co-signer is a person (most often a family member or close friend) with good or excellent credit who is committed to paying off your debt if you are unable to do so yourself. The presence of a co-signer gives the lender an additional guarantee that the debt will be paid on time.
- Use Prequalification. More and more lenders are now offering a prequalification service that helps a borrower understand what potential interest rates and loan terms they can get. Thus, when choosing a lender, it is very important to compare different offers and prequalify for multiple loans.
Requirements For Getting A Wedding Loan
At the moment, getting a Wedding Loan is fairly easy, as lenders don’t ask for a lot of eligibility criteria. Moreover, they approve applications even for bad credit. So, in order to receive money and cover the costs of your wedding, you must:
- Be a US citizen or official resident
- Be at least 18 years of age or older
- Have a regular monthly source of income
- Have a government-issued ID
- Provide a social security number
- Provide contact details such as phone and email
3 Easy Steps to Get a Wedding Loan
If you need money quickly in order to cover the cost of your wedding, then an online application is what you need. This way you won’t have to spend time looking for a lender near you and filling out a lot of paperwork. So, if you want to get a Wedding Loan online, here is what you should do:
- Fill out the form. First of all, you should compare various loan offers and choose the one that suits you best. Pay special attention not only to interest rates, but also to additional commissions and payments. Then you need to visit the website of the lenders to fill out a simple online form. Most often, you will need to provide information about yourself, such as name, address, income, etc.
- Wait for the lender’s response. After you submit your application, the lender will take some time to review your details and make sure you meet the basic eligibility criteria. If you have studied them in advance, then most likely your application will be approved within one day.
- Get money. Next, the lender will contact you to discuss the terms of the loan and debt repayment. You need to carefully study the contract and sign it if you are satisfied with the terms of the loan. The loan amount will be transferred to your bank account within one to two business days.
Bad Credit Wedding Loan
At the moment, most lenders work with different types of credit. So, even if you’ve had trouble paying off your debts in the past and have a bad or poor credit history, you’re more likely to still be able to get approved and cover your wedding expenses.
Wedding Loan Alternatives:
- Payday Loan. If you need a small amount of up to $1000 to cover the minimum wedding expenses then the Payday Loan is what you need. This loan is a simple short-term solution to urgent problems.
- Personal Loan. Another option you may want to consider is the Personal Loan. Most often, they provide from $1,000 to $100,000 for any personal needs of the borrower, which will definitely be enough to cover the cost of a wedding.
- Credit Card. You can also use a credit card to help with your wedding expenses. However, you must remember that the amount you can use will depend on your credit limit.
Personal Loan Calculator
Every Payment (Installment) = $522 per month for 0.17 year(s) at 35% APR
* It’s the amount of money you’ll need to pay every month (or other agreed period) according to your repayment plan.
Total Paid After 2 Payments = $1,044
Total Interest Paid* = $44
* The total amount of interest over all the period of the loan.