Weddings are no easy feat to pull off, and some can get quite expensive, so much so that some couples consider on how to get loans to pay for the wedding of their dreams. I must wonder though how good of an idea it is to start a marriage in debt; you are going to have a lot of other expenses to deal with besides the wedding. This decision is a very personal choice and has a lot to do with your incomes, but there are many savvy ways to save money while throwing a wedding and having it come out spectacular! But if you must get a loan, here are some options and things to consider.
What Are Wedding Loans?
A wedding loan is a personal loan, one you are going to use for your wedding. There are no loans specifically for weddings. But be careful, because you are probably also using your credit cards to pay for wedding things anyway and that along with a personal loan can build up to quite a significant amount before you know it so getting a personal loan really should be your last resort.
Should You Get a Wedding Loan?
Be sure and talk to your partner in depth about this because if you get a loan, you are spending money you don’t have and of course are going to have to pay it off and with interest. I don’t recommend this but if you just must have it here is some info regarding personal loans to consider.
Personal Loans Online
Online loans work just like banks loans, you must be approved, they give you money, and you pay it back with interest. More and more of these institutions are popping up all the time. Some reliable companies are Upstart, Prosper, and Lending Club. Although credit cards are perfect for making a point of purchase for something you want right then and there, loans are a smarter way to borrow long-term and online is convenient because they are available 24-7.
Home Equity Line of Credit
This one is common for those that own their own homes, or their parents do, and the parents are paying for the wedding. What you are doing is borrowing against the mortgage on your home. The problem for that with parents is they are looking at retirement shortly and it may not be a good idea to spend that much money so close to retirement.
I don’t recommend this method because it’s a great way to get into deep debt. A good financial planner will say instead to create a budget of what you can afford and stick to that instead.
Staying Engaged Longer While You Save Money
Yay, this is the one I like! This plan is the safest option. There is nothing wrong with a long engagement and a lot of venues you must reserve a year in advance, and you won’t be starting your life together in dept.! Chances are you already have some dept going on so why add to it?
So How Much Money Can You Get With a Loan?
You can get around $2,000 to $35,000 with a personal loan, and although I said before, I don’t recommend that as a way to go but if you do get this loan and pay it off properly it will improve your credit score.
Speaking of credit ratings, if you want to go the loan route make sure you have it. Excellent credit is considered anything above a 700 score. If you have a lower credit score, you may still be able to get a loan, but your interest rate will be even higher so think about it carefully.
Everything in Order
If you still want a loan rather than saving money and have good credit make sure all your financial documents are in order. Such as the following-
- Proof of income
- Bank statements
- Any and all debts you may have including student loans
- Basic income and identity documentation such as W2’s, drivers license, and Social Security card
Your local bank will be more than happy to go over what documentation they require on how to get loans.