Congratulations! You finally got engaged to the person you want to spend the rest of your life with. Now it’s time to start planning your wedding day.
There’s a lot of preparation that goes into weddings, and one aspect that you may not have thought of is how much that special day is going to cost you. If you and your fiancé have decided to get married as soon as possible, it doesn’t give you much time to sort out your budget.
So how do you plan the wedding of your dreams when you have no cash, and you’ve got bad credit? Can you use a fast cash loan or any other to cover wedding expenses? Perhaps the following article will show you how.
The Cost of a Wedding
The cost of your wedding will depend on the length of your guest list, the venue you pick, the food you want, and the decorations you opt for. Your wedding costs could also depend on which state you live in.
In recent studies, the average cost of a wedding in America is $29,858 (excluding the honeymoon) with a price ranging between $130 and $350 per guest. According to Value Penguin the most expensive aspects of modern weddings are the following:
– The reception venue can cost up to $13 000.
– An engagement ring is almost $6 000.
– A wedding photographer can cost you $2 440.
– The ceremony site has a price tag of about $1 800.
The least expensive parts of a wedding are the invitations, party favors, wedding cake, and transportation. If you want to save on costs, you could scrap the wedding favors as there are other essential aspects you need to think about, such as catering that can cost up to $4000.
So how do you pay for all of these expensive components of a wedding and have money left over for your honeymoon? Perhaps what you need is an online line of credit or a wedding loan.
What is a Wedding Loan?
A wedding loan is fundamentally a personal loan that you can use to pay for all your wedding expenses. It’s an unsecured loan, just like a payday loan online, that you borrow for an agreed term, which you will be required to pay back in monthly installments.
If you take a wedding loan, you won’t have to put down any collateral to secure your monthly payments, which will put less stress on your new marriage.
How does a Wedding Loan Work?
The interest rates on a wedding/personal loan can either be variable or fixed, depending on the company you borrow the money from. Interest rates can be between 5% and 36% & this determines the amount you pay on top of your borrowed money.
The rates will also depend on your credit score. So, if you have a negative credit record, you can pay more interest. You can pay more interest according to your loan term. A positive credit score means lower interest rates on your wedding loan.
Most bank lenders or company lenders will allow you to pay the loan early in full, regardless of the loan term. But you may have to pay a penalty fee if you settle your loan early because the lenders are missing out on interest they would have gotten if you paid off monthly during the term of the loan.
How to Qualify for a Wedding Loan?
If you apply with a positive credit record, the process will be quicker. But one advantage of a wedding loan is that you can apply for it even when you have a negative credit record. You’ll simply pay more interest on your loan.
Online lenders will help you with the process. Once you sign up with your required loan amount, the lenders will check your credit score and give you a full report on whether it’s been approved or not.
If it hasn’t been approved, the lenders will give you a reason why your loan application was denied so you can take the necessary steps to improve your credit and reapply for the loan.
Continue reading to find out how to pay for a wedding with bad credit.
Should You Use A Loan to Pay for Your Wedding?
Your wedding day should be a day to remember, but if you don’t have the money for it, perhaps you need some help. A wedding loan could help you with your expenses when you need it. But before you sign up for a wedding loan, you must think of your future finances. You have to pay the loan off in monthly installments, so ensure you’ll be able to afford it over the loan term.
It’s always advised to have a savings account as a backup in case you run low on cash, and you’re unable to pay your loan. You don’t want to fall into a financial trap and tarnish your credit scores.
How to Sign up for a Wedding Loan with Bad Credit
What about bad credit wedding loans? Have peace of mind because we mentioned that you can apply for wedding loans with bad credit, and it can be approved.
Follow these simple steps to apply for a loan:
1. Submit a personal loan application to the lenders. The application should include your loan amount, your banking details, where you live, and the company you work for.
2. You have a better chance of a loan approval if you have a checking account.
3. The lenders will review your application and then inform you of the outcome.
4. Once the loan has been approved, the lenders will provide you with your first payment date.
5. You’ll have information on the loan term and how much interest you’ll be paying.
Pros of Wedding Loans:
- A wedding loan is a fast, reliable, and easy way to cover costs quickly.
- Most lenders allow you to apply for a loan online, and it can take less than five minutes for approval.
- Wedding loans can improve your credit score if you pay them on time.
- After approval, the money will immediately be paid into your bank account.
- There aren’t specific wedding loans for poor credit. Simply send your application and get approved.
Cons of Wedding Loans:
- Loans can lead to a financial trap if you don’t manage your future expenses correctly.
- Wedding loans for bad credit will have higher interest rates.
- It can take five to seven years to pay off your wedding loan, depending on the amount you borrowed.
Wedding Loan vs. Credit Cards
Opting for a wedding loan will give you a fixed amount to pay off each month, and it’s suitable for more significant purchases. But they take longer to pay off because of the large amount of money people borrow. You have the option to pay the loan in full whenever you want to.
Credit cards are suitable for smaller purchases, and it can take less than a year to pay it off.
Pros Credit Cards:
Credit cards come with many advantages, including the possibility to make more purchases up to the credit limit, thus enabling cardholders to buy goods and services they might not otherwise be able to afford. Also, some credit cards are interest-free for an introductory period, which could last from 6 to 18 months. More than that, many credit cards are protected by the issuing company from credit card fraud. Thus, your money is protected from unauthorized charges.
Cons of Credit Cards:
However, credit cards have a lot of disadvantages, too, including higher interest rates. The cost of borrowing through credit cards is usually higher than with a loan. Also, many credit card companies charge additional fees for transfers and transactions. Besides, separate interest rates and charges can apply to the cardholder’s cash advance balance. Furthermore, if the cardholders fail to make payments, many credit cards will impose a higher penalty interest rate.
If you’re apprehensive about taking out a wedding loan, perhaps extend the term of your engagement and save up for your wedding.
Another way you can save on costs is to opt for a court or backyard wedding and have the reception at home. You could do all the planning, catering, and decorations yourself & hire people you’re close to that can help with the preparations to save on wedding costs.
But a wedding loan is an excellent way to reduce your stress when you want to create that special day you, your spouse, and your guests will love. So if you’re running low on money and you need help, consider a wedding loan to provide quick & convenient funds you need for your ceremony.